Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-09-05
CITY IS LIVING BEYOND
MEANS, AUDITOR SHOWS
Council Finance Committee Has
Short-Term Loans AggregatinG
$1,135,O 900 Outstanding.
BOND ISSUES FOR PAY ROLLS
Financial Men Pronounce Condition
to Be Serious--Many Extra En-
penses Put on City This Year rs
Result Of Annexation.


nond is sl,lS5.ooo. That is the amount
reported by City Auditor Crenshaw as
bills payable" or. in other words,
short-term loans made by the Finance
Committee as differentiated from the
regularly authorized interest bearing
deb; OF the city.
That the city IS living beyond its
means is shown BY the statement that
out of the current funds there are APP
Piopriated uneNpended balances OF
s1.5ol.2S5.93. while il has a cash bal
ance OF only about e-third of this
sum.
More serious still, according TO finan-
cial men who have studied tho latest
report of the City Auditor, is the con-
d!ton of bond issue appropria tions. The
hooks show bond issues for various pur-
poses. including the annexation issues.
OF Sites, 73S.SS. OF this there has been
expended S69?.5l9.54, leaving an uneX-
pended book balance OF Sl.o32.2l?.34.
Although the bonds have been sold tho
treasury does not show this amount q!
money. its exact total in hand and in
bank is S5S3S2i.30. In other words.
money provided from the sale of bonds
and intended for specific purposes. has
been used 10 meet current bills and
pay rolls, with the expectation of re-
inbursinG these various bond issue
counts when city taxes arc collected In
December
DEFICIT IN ADDITION
TO SHORT-TERM NOTES
According TO the Auditors report of
the condition of the citys finances at
the close OF business on August 81 the
city had appropriated from current
funds for all purposes during this fiscal
year S4,153,1a2.56. Actual payments on
these appropriations have amounted TO
S2.6Sl,3S0.ol. This leaves uneXpendcd
appropriations. including the amounts
inl IN,
payment of salaries for the remainder
OF the fiscal year. sl.5oi.2S5.93.
Some Of the public improvements
for which bonds have been sold may
not be completed during this fiscal
year that the treasury may not he
called upon to make actual payment
of the entire amount appropriated.
However, there are, according to the
auditors books, uneXpendcd balances
of appropriations on the current funds
op sl,5ol, 2S5.a3. and of appropriations
for bond issue funds of Sl.05?.2l?.3i.
This makes a total of S2,560,5 O5.27 of
expenditures already authorized and
which the treasury may expect TO bo
called upon TO pay before the close
of this fiscal year. To meet this de-
mand the treasury has $3.50, 80 dc
posted in various banks, making the
net excess of appropriations. over cash
I'm hand, Sl.a77,1So97, which is to be
met either by taxes TO I've hereafter
paid or by further loans.
This apparent deficit is in addition
to the item Of bills payable carried
by the auditor at Sl,l3a.ooo. which
has been borrowed from local banks
En the shape OF short-term notes.
PAY LESS INTEREST
THAN ON CITY BONDS
These short-term loans were. in
most cases. made with the under
standing that the banks would he re
imbursed when the city was sufficiently
in funds at the next tax wing period.
Some of the items were of improve
ments intended 10 he covered by future
bond issues. and the short-term notes
Will he taken up when tho bonds are
sold. With appropriations already far
in excess OF the cash in hand or the
PROBABLE receipts OF the remainder OF
the fiscal year. ii does not appear that
the city VIII he in "A position greatly
10 reduce its floating debt out of
current revenues. The amounts Dor
rowed by the city vary in size The
last loan is said to have been for $500
600, and was secured from tho Mcr-
chants National Bank, on August -
On this loan the city Is paving IL
per cent interest. which is less than
the current rate of interest on city
bonds
The c!ty's filrsnrial condition is at
tributed by many. GoUncilmen and CITY
officials TO the policy which has been
followed for some wears of increasing
salaries and addinc 10 the number OF
city employees which has gone on um-
til the budget makers nnG at the be-
ginning q! the year that the entire
anticipated revenue Will he required
10 meet the interest on the debt and
the citys fixed payroll charccS So
acute was this situation at the begin
ming of TINS year that the appropria-
tions for streets generally was scaled
10 less than half of that last year.
REVENUES so FAR ARE
LESS THAN LAST YEAR
Relief Is expected, however. from the
new real estate assessment. which is
expected To SHOW a considerable in
crease in the value OF city property.
with consequent increase In the ciJy's
revenues next year and AN extension
OF the city's bonding limit.
y footnotc TO the AUDITORS rcpor,
shows that changes in the tax laws
make the revenues received up to this