Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1914-07-27

In order to prevent lack of good
system in the future, the city should
prepare and adopt a budget and then
live within the budget appropriation.
2. Most cities are lacking in busi-
ness methods of controlling expendi-
lures. From eight to a dozen men
may order supplies for the city with
out any permanent record to show
what was ordered, from whom it was
ordered, at what price and who auth
orized the purchase. A few months
later, or perhaps year later, the
merchant will present his bill. The
bill may include items not ordered
or at excessive prices. The city is
dependent solely upon the memory
Of the man who ordered the supply,
who may or may not remember cor
rectly. At any rate the city has no
evidence which would stand in a
court of record to disprove the
claims of the merchant.
The Remedy.
The remedy for this condition is to
install a systematic method of con-
Quoting public business based upon
written purchase orders and delivery
slips which show that the articles
were ordered by some one authorized
to incur expenses, that there were
funds in the treasury to meet these
expenditures and that the articles or
dered have actually been received.
8. Under the present system of
bookkeeping in most cities it is i'm
possible to tell whether the city re-
ceives each year from the county
treasurer all the money that is due
the city. This seems like a simple
thing, and yet have still to find the
city recorder in Oregon who can tell
me whether his city received all the
money due it last year and what
amount remains unpaid.
Albany Example.
4. Another example of inefficient
method has to do with the methods
of paying off bonds. The charter
usually provides that a sinking fund
shall be established to pay off the
bonds at maturity, and yet in spite
of express charter provisions many
cities have no sinking funds. About
twenty years ago Albany issued $751;
900 worth of bonds to build bridge
across the river at that point. The
interest charge on these was 6 per
cent, or $4,000. During the twenty
years the city paid out $4,000 in
interest alone, on 200 more than
the amount originally borrowed
Owing to the failure to establish a
sinking fund the debt is still unpaid
and 1t became necessary recently to
refund these bonds for another twen-
ty years. Before the debt. is finally
cancelled the cost to the city will be
over 100000.
Owing to the difficulty and com
plexity of managing a sinking FUND
it is now considered business prac
tice to issue serial bonds This
method is cheaper than the sinking
fund method, the saving being about
$S7 on each $1,000.
Cities Get Help.
Other instances might be cited
showing how cities may economic
by adopting modern business meth
DDS. but these must suffice. The fac
is that for nearly every task con
nected with the conduct of city bust
ness there is some one best way o
doing the work, and it is folly foI
each city to work along in the darl
without availing itself of this accu
mulated knowledge and experience o
other cities.
Realizing this fact and the tre
mendous saving to the taxpayers o
the state of Oregon which would re
suit If every city in the state woulC
conduct its business in the best ap
proved method, the University o
Oregon has established a bureau o
municipal research for the purpos
of assisting cities in solving thes
problems. Studies have been mad
in Medford, Eugene, Albany, Leb
anon and La Grande and suggestion
for improving the business admins
tration of each city have been made
In order to secure the service of tn
expert in charge of the bureau, al
that is necessary to do is to hav
your mayor or city council invite hin
to your city to look over the city
methods and to offer suggestions
This service is free to all communitie
of the state.
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