The Richmond palladium and sun-telegram., 1912-09-14
Criticise the Way the City's
Special Street Improve
ment Fund Was Formerly
Conducted.
MAYOR ZIMMERMAN
MUST BEAR BRUNT
The Methods Criticised Pre-
vailed During His Admin.
istration Prior to Demo-
cratic Regime.

The special city street improvement
fund. according to the special report
of Field Examiners Harry Boggs and
]. B. Smith submitted to the city au-
thorities today. has been handled In q
lax manner both as to the issuance of
bonds and the collection of assess
ments.
The report Of the field examiners
at the outset the juggling by which
former city officials manipulated the
eral fund.
Thus. in a way. the cash payments
of citizens We're used to pay the city's
portion of the improvements, the re-
port says. "As the assessments began
to come in from those who had taken
the ten year payment plan. these pay
| ments were placed in the general
fund and all bonds and coupons were
paid out of the general fund"
AS a result OF this procedure the
revenue of the city was increased In
the amount of $20,57430. but a cor
responding deficit of more than $751;
600 was created in the special improve
ment fund.
Advise Prompt Action.
The examiners recommend that the
city provide ways and means to reim-
burse the special improvement fund
and all bonds where prepayments have
been made should be called and cam
celled to the extent of the prepay
ments.
/ The treasurer is urged to proceed
to collect the delinquent assessments,
adding penalty and interest a. is pro-
1 vided by iaw.= The report indicates
where the city is losing money as q
result of the juggling that formerly
took place.
The full text of the report follows:
This examination covers all Of the
live improvements beginning with
bond series No. "a issued June /,
1903, all issues previous to this date
having been paid off. and all assess
ments with but few exceptions that
are fully set out In page 4 OF this re-
port have been paid off and waivers
released.
This examination IL made az of
April 80. 1912. all payments of as
sessments made since this date are
shown in this report as delinquent or
not due according to the condition that
existed on April 80, 1912.
Your examiners added the amount
of outstanding bonds and coupons un-
der each series to ascertain the liza
bility of the special Improvement, then
the unpaid assessments were added
to ascertain the assets, or the amount
which the city could collect with
which to pay the bonds and coupons
Handled In Lax Way.
The records show that the special
improvements have been handled I'm
a lax manner both as TO the issuance
of bonds and the collection of assess
ments. During the years Of 1903 and
1904 and part Of 1905. II was custom
airy for the city to pay the contractor.
the entire amount of the contract price
out of the general fund of the city.
Then the city would sell gonds for the
entire amount of the contract, less the
lcity's proportion. regardless Of the
amount of cash payments made by
property owners. and the money deriv-
ed from sale of said bonds was placed
In the general fund and was the money
paid in cash by property owners. Thus.
in q way, these cash payments were
used to pay the city's portion. As
the assessments began to come in from
those who had taken the ten year pay
ment plan, payments were piacel In
the general fund and all bonds and
coupons were paid out OF the general
fund.
In some instances, improvements
were made and property owners took
advantage of the ten year payment
plan, but no bonds were issued, as In
the instance Of the improvement Isl
of January 3. 1905. in the amount Of
$22S.2S. As a usual thing. these Inn
provements for which no bonds were
issued, were small and the city eyt
IDENTIFY paid the contractor direct from
the general fund. A number Of these
have been paid In pull and are not
shown in this report In some In
stances, evidently through clerical er-
ror, the bond issue exceeded the cost
of the Improvement, as illustrated By
bond series No. 80 of November 2.
1913, while in other instances, the
amount of waivers exceeded the bond
issue, as illustrated By Improvement
J No. 4se. bond series No. z31, Of No
vember Is. 1911
4 In November of 1903, during the
year 1904 and in January 1905. there
were twelve bond series issued In .
total amount Of $20,574-30 In exesss Of
the amount Of waivers fIled On the
Improvements under said series, said
amount of $20.574-3o represents the