Every evening, Wilmington daily commercial., 1922-01-20
COUNCIL WARNS Of
FINANCIAL DEFICIT
Reduced Receipts Going to
Bring Reduced Departmental
Appropriations.

City Councilman James B. Nc
Manus. chairman OF tho finance COM
mittce Of that body and the man who
has the most to do with the dietribu-
ton OF the citys funds to the vari-
Que branches OF tho municipal gov
eminent last night at the weekly
Council meeting served warning on
the directors OF all departments that
they will have 10 economics In their
expenditures He also gave them an
inklins OF what they may expect In
The way OF reduced appropriations and
AT tho same time there might be found
In bis assertions a yelled notice TO
the taxpayers generally Of what may
bo expected by them in the way OF in
creased tax rates for the next fiscal
year for u is now evident that the
city's revenues for the current year
are going to fall far short OF tho bud
set as estimated at the end of the last
fiscal year.
1t wac toward the close OF the meet
ing that MIR. McManus moved that the
clerk OF the Council be Instructed TO
communicate with the respective de-
psrtments advising that it Is evident
that tho receipts will be less than the
estimated amount appropriated in the
budget and in view of this it is highly
probable that their appropriations will
bo reduced proportionately and they
should be governed accordingly. This
motion was passed by unanimous vote.
Discussing tho subject later Mr.. Nc
Aianus explained that he is a believer
IN a city. the same as any private
corporation or company. living within
It's means. While the budget is made
Up on estimated receipts. he said, IL
q should be found that these receipts
are not coming In as fss st or IN amounts
as large as had been anticipated then
he favors cutting down departmental
, appropriations to correspond with the
cash IN hand. In other words II a
city department Is allowed an APP
preparation Of 100000 and the re-
ceipts are found TO be $3.50, 900 then
he fsvors cutting the appropriation to
Ss5o, 900 and making the department
conform 10 81 in its expenditures.
This Is what the motion as adopted
last night means for all branches of
the city government. There Is said
TO I've hardly any question now that
the city - going 70 be confronted with
O deficit at the end OF the current
fiscal year. Councilmen have tho fore
sight 10 sec this and tho warning as
issued last night is for the purpose Of
reducing that deficit 3s much as pos
sihle, There viii therefore have TO
be much curtailing throughout all the
departments from now until juno so,
the end of the current fiscal year,
/ regardless OF how much such pairing
OF expenses is going to interfere with
I the work in these departments.
For the next fiscal year IL is doubt
full II there viii be an increase in the
property assessment, for &c is admitted
that real estate in tho city is depreci-
sting and that st. is now assessed tC
nearly its full value. The only alter
native, therefore, is 10 increase Tho
tax rate and this the officials are very
reluctant TO do unless compelled &C
take this step ae q matter OF pres
ervation Of tho city's financial tnteg-
rity. This, it is said, would be a very
unpopular step because property
owners now claim they are taxed tc
the limit Of their capacity and thai
real estate is carrying the city's hnan'
cial burdens already.
The members OF the finance com
rnittee OF the Council are much con
cerned over the prospects and thi
financial situation is causing then
much worry. just what is going K
be done remains a problem but Their
are yet 20 be made many heavy ex
penditures before the end Of the fisca
year and the balance to the cityi
credit now IS rapidly dwindling and
Is doubtful If it will hold out 20 th'
end OF the current fiscal year.