The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-09-14
LAX METHODS
CHARGED BY
ACCOUN 7 ANTS
Criticise the Way the City's
Special Street Improve
ment Fund Was Formerly
Conducted.
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amount of cash payments made by
property owners, for which bonds
should not have been issued.
A Deficit Created.
AS result of the above procedure,
the revenue to the city was increased
it the amount Of s20,574.3O. at that
time, but corresponding deficit was
created in the special improvement
fund. This amount Is the principal
part of the $28,435.20 deficit found in
this report. The interest on this
amount which has been gradually. ac-
cumulating since the date of the above
bond series, also enters into the gen.
eral deficit.
In September of 1906, the special i'm
provement fund was separated from
the general fund but no division was
made of the individual improvements,
consequently, all collections from as
sessments are placed in the one fund,
regardless of the particular improve
ments from which they come and all
bonds and coupons are paid out of
this special improvement fund or as
1t is designated, the special street i'm
provement fund, thus money collected
on one street is used to pay the bonds
and coupons on that particular street
or any other street
This report sets out the condition
of each improvement, except instances
where more than one improvement is
covered by one bond issue, and show
the deficit or surplus in that particular
bond series on April 80, 1912.
Delinquent Charges.
No account has been taken in this
audit of penalties or of interest charg-
es against delinquents, the asset state
ments of unsolicited assessments be-
ing derived from an addition of the
duplicate as originally expended when
the improvement was entered. In
many instances prepayments have
been made, but no bonds have been
called as Is required, in order to stop
the interest for corresponding Pc
riod. The money derived from these
prepayments has been used to pay
the bonds and coupons as they fall due
thus the city sustains loss.
With but few exceptions, the penal
ties and interest charge have never
been enforced, thus the city sustains a
loss through this source. The treasurer
should proceed to collect the delinQu-
ent assessments. adding penalty and
interest as is provided for by law, and
he should certify at the end of each
year, a full list of delinquent assess
ments, which are legally collectable,
due, for sale at the annual sale of
delinquent lots and lands in Febru-
ary
The city should provide ways and
means to reimburse this fund and all
bonds, where prepayments have been
made, should be called and cancelled
to the extent of the proponents. If
this Is not done at once, the city will
continue to lose to the extent of the
interest left on all prepair assessments
which interest should have ceased
when said proponents were made.
The following is the statement of
the old delinquent assessments on i'm
provements made from 1893 to 1901,
NIL bonds and coupons have been paid
of and duplicate No. 3 shows improve
ment bonds No. 80. So. 146. 156, 200,
and 231 still unpaid in the total of
$25S.99.
In regard to individual cash pay
ments. the accountants state the rec
ords show while the records are not
clear on this point. it appears that
after assessments have been finally
made against property owners, some
Of these property owners have ap-
peared before the board of public
works or council and protested and
the city would compromise by assum-
ing part Of their assessments, thus
letting the original assessment stand. !"
The accountants undertook to set
out In detail data relative to the issu-
ance of bonds to cover each waivered
Improvement, and report as to deficits
and SURPRISES which they credited
against each waivered Improvement,
and found in recapitulation total deflc-
Its amounting to S35,323.sO, and total
SURPRISES of $343.33, thus making the
deficit $34.Ss0.47 from which the ac-
countants subtracted $6,545.27, the
cash balance in the special street i'm
provement fund on April 80, 1912.
making therefor the next deficit $685.
1880.