The Birmingham age-herald., 1915-01-17
CITY'S MONEY WELL SPENT;
 REPORT TELLS HOW TO CUT
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rcsed to be self-supporting will bea careful consideration 10 deternin whether the city is realizing from then hat is believed. We have investIcates the public utilities. waterworks ant electric lighting plant owned and op efated by the city in North Birming ham. and can see no economy lo ac orue to the city in the extension ol even in the continued operation o these plants in their present made cuate condition.
 We submit the above suggestions to tn, discretion of the city commission with { view to the actual reduction of the mu nfcipal current expenses. We have nov to call attention 10 certain administra tive changes which could be made, W, think. to the benefit of the city's finances even though the amount of money act ually spent might not be materially less.
 Regarding the Deficit
 The present deficit confronting the city of sSS0. .460.22, accumulated during the three fiscal years ending September 20 1914, and amounting now. including ar estimate of the obligations that have been incurred in excess of revenues dur ing the last three months to about S1 coo o00 has arisen in great part from mak- ing investments and outlays from the general revenues of the city which might more properly have been paid for by the proceeds of bonds issued specially for the several purposes. The fund from which the city pays interest on its bonded debt is not that which is causing anxiety; indeed it is accommodating into a sinking fund more rapidly than need be- There fore, any expenditures now made from the general revenues which could be legit- jmately apitalized instead of being car ried as yearly expense, should be met by bond issues, even though the issues be small and recurring every two years.
 At present something over 5000 s,er year Is paid as rent for temporary quar- fers for schools. which might well be paid from the interest fund on a bond issue used to purchase buildings, for the purpose to which rented buildine es are now put.
 Again. the present accumulated deficit includes something over $120,O00 paid out of the general fund for the acquisition of lots for schools and improvements of school buildings; and little additions and constructions to provide more room for the schools seem to be made regularly from the general fund. Therefore, when deficiency bonds are issued as will prob ably be done again soon, the cost of these Improvements is included in the deficit. when it might better be met by special bond issue thereby reducing the class of bonds the amount of which is limited by the state constitutions for no city can issue bonds for general pur- roses to the amount of more than per cent of the assessed valuation of the property in its limits while bonds for school buildings are not counted in the restriction.
 On the same principle the present deficit was increased by about S140,00O on account of parks purchased during the last three years. and also by the cost of the new Avenue F prison, about $65000. These are permanent investments to be used by the public indefinitely. and might well have been paid for by bonds issued eX- pressly for the purpose. It is true that such bonds could not be excluded from the limitation of z per cent on the as- sessed valuation of Birmingham property; and whenever the public debt is approach ing that limit such purchases as parks should not be made. But outlays for the purchase of parks and prisons and fire stations are in no sense proper annual expense.
 In short, the $SS0, 46o. .22 total deficit ex- isting on September 90, last included large capital outlays not merely those incidental 10 increasing the fire depart ment, the street department apparatus, and other things required by a growing city, and of uncertain durability but also some $360,000 of permanent investments which the commission have thought wise to make
 This $120,000 of school structures and school lots should have been paid for by d school bond issue: and these parks and city buildings should have been paid for in special issues. And if the people did not want to vote for the issues, they would have known what they were foregoing for economys sake.
 Small Bond Issues
 A small issue of bonds is no objection to any one but the broker, who may want to buy them; it makes their pay ment easier for the public to meet at