The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-03-31
Continued From Page One.

body Of tax payers to a matter that
is complicated and technical. The de-
felt in the special assessment funds
amounts to at least $14,00 and may
reach $40, 900, the final determination
being now the subject of expert in
vestigation. Part of the mount is due
to illegal assessment, but the cause
veXing has been the f~allac1ous
method Of calculating interest; to illus
trate: A paving contract is complet-
ed on Sept. 1 and a warrant is issued
in payment for the anne The assess
ment against the property which is to
pay for the improvement Is made Dec.
1, and in the assessment is included
interest on the warrant from Sept. J.
the date of its issue, until Dec, l, the
date of the assessment; but the assess
ment is not paid by the property own
ers until March /, therefore the city
has carried the warrant without in
terest from Dec. l to March l and as
the property benefited has not paid the
interest the treasurer has been obliged
to pay it annually from the principal
Of the assessment. This works out all
right until the 1nal payment, when
we found a deficiency in the fund and
danger Of a default of the
city bonds. This fallacious method has
been in vogue since 1899, except the
year 1908, which, with 1 hope e~xcusable
satisfaction, 1 can call attention to as
the year when 1 was mayor, and also
the present year. In these two years
this interest interval has not been
overlooked, although it adds to the
taxes Of these periods in an unfaVor-
able comparison with the other years.
The deficit in the general fund
amounting to about $4,000 is the
gradual and natural accumulation of
H. r~~nn An~Au ENn oh Nrnn -
there are a number Of small or tran
sient taxpayers who move away or
evade their taxes. This has been grow
ing through many years, a little each
year, until now it is large enough to
demand attention or correction which
may be done in three ways: by adding
the entire amount to our next annual
levy, by creating a sinking fund to
build up year by yea to equal the de-
felt, or by an issue of bonds running
a number of years to be finally extin-
uuished by a. special sinking fund. The
later plan is the cheapest and most
equitable.
Interest.
The warrants on the general fund
have for years drawn interest at Z per
cent per annum. This year We have
required them to be offered at b per
cent and and an unlimited demand at
that rate, which is a guarantee of the
excellent financial credit of the city.
Waterworks Finances.
The total cost Of the new city
Waterworks is $224,OOO
The value OF the old equip
ment is lO,oOo
Total .$234,000
1t may be mentioned that this does
not include the general water main
system which belongs to the property
benefited.
The total income of the waterworks
Is estimated this year at $4,000. The
| total cost of maintenance and opera
ton is estimated $4,000. This latter
| sum does not include overhead charg-
es such as interest on bonds and an
nual contribution to sinking fund
which is to care for h waterworks
| bonds.
The new plant having only just
been. completed we must confine our
| selves rather to what should be done
in the matter of lance than to hat
has been done beyond the statement
| of figures above, There is a difference
OF opinion in these matters but l rec
| ommend the following. The water
works should be run as a separate
propositions; as though it belonged to
a private corporation, thus only
| efficiency and economy reach the nigh
| est standard. Water should be sup
Iplied to the people at cost. The cost
| Of maintenance, operation, determine
ton. replacement, interest on capltal
invested, and annual cost for bond
sinking fund should determine the
basis on which water rates are made.
The city should be charged not less
thar $50 per hydrant, thus netting
the waterworks on over $50 MIGRANTS
SO, 500. The principles governing this
proposition are two; first to secure
reyenue to the waterworks which Will
| enable 1t to lower rates; n second
to- distribute equitably among the tax
navers the cost of fire protection. To
Illustrate: A man with q small house
valued at So, 900 now often pays as
much for city water as many ware
| houses valued at perhaps 100000. Thus,
the small house would, be taxed as
| heavily for fire protection as the larg-
er concerns, but il the city as a whole
pays for this fire protecuon IN the
tributed in the general tax levy In the
exact proportion that one piece OF
| property bears to the other.
New improvements.
During the past year the city has
maid or completed payment on o
$500. 900 in improvements; $265,00O for
| naving and $224,000 for waterworks.
1t is gratifying to know that not a
| sI1spicion of scandal or misappropria-
ton has been expressed by anyone;
the immense paving improvements are
thec heapest and the best of n COM
parison in the United States, and the
| filtration plant is also the equal Of
the best in the nation.
Accounting.
At the present time the greatest
/ need of the city is q reorganization
Of the accounting system, which If
Droperly done will guarantee economy
of expenditure and reliability of state
ments. Our present system is the
growth of twenty years of piecemeal
additions and changes, often made
without regard to a harmonious
| whole, or relation of one department
to another. To adapt ourselves to
modern system would cost $1,000 to
$1,000 for expert supervision. Under
! such a system every expenditure
would be comparable with some
standard, as to illustrate: The cost
for sprinkling and sweeping streets
| for June would be instantly compared
with the ame expenditure for May
| and also with the same period of the
previous year thus furnishing an i'm
| telligent understanding to the public
| and providing an incentive to officials.
and departments to measure up to the
best standard. In my opinion a prop
er system of accounting viii do more
to remedy the complaints against not