New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-16
SAVING CITY MONEY


upon deposits. For three months this
would mean revenue 20 the city OF
$4,000 on an average balance OF 80
100000. Meantime. with this money ~
ing i'm the banks. the city would have
90 borrow approximately a correspond
ing amount upon revenue bonds for a
like time 10 supply current needs OF
city government.
It is the intention Of the Controller
20 make an arrangement with the banks
having this money on deposit 90 lend
the city an equal amount upon revenue
bonds for a like period at not more
than q per cent This would mean that
the city would have 20 pay as interest
upon revenue bonds $4,000 for the use
OF an equivalent amount of money to
what il had on deposit. or that for the
privilege Of keeping its permanent I'M
provement moneys on deposit and al
ways available il would pay the differ
ence between the amount received as in
terest on deposits and the amount paid
out as interest upon revenue bonds. This
would mean an apparent loss Of $50
eco under the new system.
But there is a much larger correspond
ing saving which the new plan would
effect in tho prompt payment il would
insure Of all claims against permanent
Improvement accounts. Work done un-
der contract upon permanent improve
ments i'm 1909 totalled S54.OO0O00. II
is admitted that under the existing sys-
TEN contractors dOing work for the city
add . per cent 10 their hid prices by
common consent because they have TO
wait from three TO nine months for
their money after claims arc filed.
Saving by Prompt Payment.
Competition among contractors them
selves would insure the doing away with
this > per cent charge just IS soon as
IL became known that the city intended
20 make prompt payments This would
mean an annual saving Of 100000 on
the basis Of the amount paid out for
permanent Improvement work last year.
The apparent loss which the city would
suffer from the abolition Of the general
pot practice Of using permanent i'm
provement account balances for current
budget needs instead Of borrowing the
money upon revenue bonds is estimated
al S2JO,0OD a year. As against this sp-
parent loss. the Controller estimates
that he will he able 10 effect a saving Of
s.. 100000 a year by promptly paying
all claims against these accounts, SO
that there will be a net saving 20 the
taxpayers Of 81, 10000 a year because
OF the change.
Under the improved system ~ audit
which the present Controller has estab-
lished In the finance department, il il
expected that all claims upon permanent
Improvement contracts. except those
that require extensive adjustment. can
be audited and registered for payment
within twenty days from the time they
are presented. With tho money always
on hand In the banks to pay these duly
audited claims. tho Controller is conf
dent that contractors doing work for
the city will by common consent do
away with the = per cent charge which
IN the past has been included in all bid
prices because the city has been re-
garded as very slow pay.
II is also expected that the prompt
Payment Of claims under tho new sys-
TEN will result I'm very much keencr
competition among contractors for city
work upon permanent improvements
with a corresponding reduction in con-
tract prices that will further increase
the saving To the taxpayers each year
upon this class Of city work