South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-02-28

/ alec bo deducted from this cash bal
/ ance unpaid bills for 1921 I'm the
\ sum Of S6f.S4I.40. also there re-
I mains S5.S0O-o0 TO be paid on the
I No hose house. making a total
\ deduction from this cash balance OF
I Sl2e. 6f1.40, leaving an actual cash
/ balance i'm the sam OF &l56,s4Z a
I with which 70 begin the business OF
1922. and IT. must be remembered
I thu this sum is all that we have 20
paw. the oper%tiuE expenses Of the
/ city 20 be paid out Of the general
fund until the next tax period OF
/ Nav ist. The city needs at the least
I S250oO6 in cash 20 pay these eX-
penditures from Jan. 1st 10 May LIST
as the annual cost OF operating said
? departments Of the city now aggre-
gate $500, 600. This cost compares
with $4,000 ten years ago and
$40. 900 four years ago and IL is
apparent that very much larger
working balance is now needed than
was required i'm those years.
Disastrous Condition.
However. I think the attention
OF the common council should be
called 70 the disastrous financial
condition into which we have been
drifting. The table marked Exhibit
a shows that for each OF the past
FIVE years the city has been Oper-
ating al a cost I'm excess of its in
come This deficit in annual oper-
alton has been raid either out Of
the cash balance AT tho ginning
of the year or out Of the proceeds
OF the sale OF bonds This means
that the annual cost of operating
the city instead of being met by
income raised during the year has
been added 70 the bonded indebted
ness Of the city. and that We will
not only have to paw the cost OF
government during this year but
also the cost Of past years, together
with interest thereon; also, that IT
this practice is kept up 10 years
more and At the Same rate that IL
has been going on. the bonded limit
will have been reached and the
city will have nothing TO show for
the bonded debt which has been
incurred in paying these annual op-
Grating expenses.
In stating TO you that the annual
operating expenses of the city for
year ought not 10 exceed the fixed
income for that year, I wish 20 be
understood as meaning what this
statement says. The annual oper-
ating expenses of a city are such
as the payment Of salaries, repairs.
uC keep. paying for the cost OF
street intersections and so on, that
is. they are expenses which arise
and must be met each year II is
quite proper 10 pay for permanent
improver ents such as new build
ings. addition TO our water system,
and the installation Of a police and
fire alarm system by bond issues.
Such expenses as these should not
be paid out of current revenues but
should be paid for by bond issues
for the reason that future genera
tions have the use and benefit OF
the same and they should help pay
for such additions and improve
ments. Certain of the debts con-
tracted in 1927 and unpaid the first
OF this year are for improvements
which may we'll be paid for by a
bond issue. for example. a debt OF
So, 10000 for building an addition
TO the No. { hose house. and a debt
Of S2O.S9O.OO for additional equip
ment for the fire department And
il is proper 10 say that a part OF
some Of the deficits herein pointed
out were contracted in making per-
manent additions to the property
Of the city
Pressing Needs.
There are certain needs now
pressing upon the city I'm the ma
ture of permanent improvements
and additions which We can not de-
lay much longer in meeting. and
sooner or later YOU will be asked
to provide for these by bond is
sues But tho responsibility Of
making annual income and expen-
diture meet each other is that OF
the common council, and II is a
responsibility which YOU can not
escape. The mayor and city comp
trolleU OF the city can advise YOU
I'm these matters but the fixing OF
taxes and the voting of money TO
the various needs Of tho city are
alone can perform.
Also I hope that whom 10 be-
comes YOUR duty 20 make up the
annual budget i'm September OF each
year that your members will make
a careful survey Of and havo an
adequate knowledge of the require
ments of tho city, so that the bnd-
get will perform it's Intended func.
ton Of anticipating and allowing
for all needed expenditures for the
next fiscal year. II Is understood
that the budget can not provide for
expenditures arising out Of cmer-
Eencies or changes OF policy in max
iuN Public improvements, but there
can be no excuse for adopting a
r,.idget which does not provide for
demands which are already fixed
and ascertaiued III the budget is
10 he formed i'm a haphazard and
arbitrary manner. without any re-
gard 70 fixed expenses. then the
budget system has no virtues and
might as well he abandoned en-
tirely.
Economical Basis
II advise YOU that the different
departments of the city have been
organized 20 function on the mos
economical basis. the number Of
employees in tho street and water
departments have been cut. and the
wages of employees In said depart
neuts have been placed upon the
same standards as those of private
Industry There is going 70 be
very great saving in the cost or gov
eminent I'm this year az compared
with that OF last year due 20 these
economies and 10 the fact that e
is necessary 10 curtail street inn
provements
d.