The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-11-30
HOME RULE
ECONOMICAL
FOR DAYTON
City Has Installed Scientific
Auditing System for Fin
Floating Debt is Re-
duced-Purchasing Agent.
PAY-AS-YOU-GO BASIS

Editors Note: Clarence B. Greene,
director of the Dayton Bureau of Re-
search has prepared series of articles
on home rule for the Palladium. The
seventh follows:
Probably the greatest example OF a
successful operation of the commits
sion-manager plan Of government is to
be found in Dayton. Ohio, an indus
trial city of the southwestern part of
the state. with a population of 175.0O0.
This beautiful city on the Miami river
was the first large one to adopt the
manager plan, although since its adop-
tion in 1914 many other cites through
out the county have followed the lead
of Dayton and adopted similar char
ters..
Because of the rema rkable record
which Dayton has made under the
plan, interest has been focused on
her experience, and the tale of her
achievements many times told.
One very great advantage Dayton
has, and one very great disadvantage
she shares with every other Ohio city
The disadvantage is the restriction on
any sufficient available income with
which to finance her operating ex-
penses, by what is known in Ohio as
the Smith one percent tax law. Not
only is the tax rate of all Ohio cities
regulated and limited, but any revalu-
alton of property, which might there
by increase the income from taxes, is
outside their jurisdiction. AS a con-
sequence, every Ohio city in these
days of extremely high costs is labU-
ing under staggering debt, or mas
been compelled to curtail needed pub
lie services so as not 10 greatly in
crease it's obligations. An immediate
solution of the statewide problem has
been undertaken by the legislature,
through the temporary lifting of the
restrictions of the Smith law.
Citizens Interested
The especial, outstanding advantage
which Dayton enjoys is the fact that
her large industries are owned and
operated by local residents, men OF
an astonishing and passionate devo-
ton to the best interests of Dayton,
and an invaluable asset to any mu-
nicipality.
Prior to 1914 there had been a
growing discomfort with the manage
ment of Dayton's affairs. For num-
ber of wears leading citizens from
every representative group had been
aGVOcaI1ng OetleI IIetlooS VI WY
MANAGEMENT Waste and inefficiency
with the system then used were obvi-
Gus to every citizen. Every year saw
DAYTON sinking more heavily into
debt.
While it is possible the tragic con-
fusion following Dayton's terrible flood
in 1913 hastened action for new city
government, it is certain that the
forces which were to bring about that
change were at work long before the
deluge of water. 1t is interesting to
know that before the adoption of the
charter which gave Dayton its present
form of government, long and thor
ough campaign of education was car
ried out Hundreds of talks and lee
lures we're given to interested groups
Many vivid statements of facts were
thrown on the screen. Newspaper ad
vertising space was used to acquaint
the people with the facts of their own
city. A municipal research bureau,
supported by private contributions,
was the agency through which this
accurate and reliable information was
made available to the public.
Faced Big Debt.
Financially. Dayton faced a bonded
Indebtedness of over S6,OOO,OOO. be-
cause the old administration had bor-
rowed wildly. issuing bonds to cover
annual operating expenses, and yet
more bonds to meet the interest re-
quirements upon previous issues
Pavement repairs, for instance, had
been paid for by bonds, to avoid the
political odium of raising taxes. There
was no system of scientific accounting
in use. and city records were juggled
10 make a good showing. A bond
issue of 100000 for flood repairs had
been used instead for running ex-
penses. so as to avoid the appearance
Of the inevitable usual annual deficit.
The new commission and manager on
January /, 1914, found a floating debt
of unpaid bills and expenditures, in
excess of income, of $125,000.
The city then had a red-light dis
trict; an insufficient water supply.
built for population of about 10000;
no ash or rubbish collection: incom-
plete sewerage system; public health
neglected.; loan sharks working un-
hampored; public nursing overlapped
and sanitation ordinances were not en-
forced. Worse than all this. but the
legitimate result of the whole situation
there was a general distrust of mu-
nic'pal government. and a general dis
belief in all municipal officers.
New Auditing System.
The primary reform in Dayton was
the installation of scientific auditing
system for city finances, so that it is
now known at the close of each day
the exact state of municipal funds
and commitments. The annual budget
prepared by the manager and depart
ment heads, is printed in handy
pamphlet form, so that any citizen
may inform himself fully and acccur-
ateiy on municipal expenditures and
compare each year, item by item, with
previous years.
During the first four years of the
new plan the floating debt of $125,0OO
was reduced to s65,000. This was
made possible through the fact that
the city lived within it's income and
finished each year with net cash
balance. In addition, Dayton adopted
the policy of issuing sinking fund
bonds. and setting up a reserve for
retiring the bonds at maturity.