Every evening, Wilmington daily commercial., 1922-05-24
INEFFICIENT FINANCIERING.

The city Council Ia now engaged In
Its most important work OF the year
ono Of the few OF it's ancient func-
lions stil left to it--that Of making
up the budget for the next fiscal year.
which begins ON July 1. II must
complete this work 10y making the
appropriations and fixing the tax rate
by tho end Of May.
Also. the finance committee OF the
Council IL now putting forth Its ut
most exortions. Il Ia said. to keep
the deficit" Of the current fiscal year
down TO the lowest possible ngures.
The dcnci, at the close az the last
fiscal year. June 30. 1924, II Is said.
amounted to sl2s.ooo.
No wonder the finance committee is
striving to keep down the assured
deficit Of the current fiscal year. A |
deficit Of any amount is a confession |
IN violation Of the city charter.
II has been many years since the |
city charter was amended so ms TO
practically prohibit the creation of
n dollar ~ floating Indebtedness. cx-
cept through an appropriation to meet |
an unexpected emergency. and then
only by resort TO temporary loan
o. be paid ont of the current receipts |
of the ensuing fiscal year. This in
. hlhition. however. has been more
honored In She breach than in the OBJ
servance" especially during recent
years. For a deficit. instead Of a small
cash balance. has been the invarisble
showing Tor quite awhile.
In former years. before the present
financial system was adopted by a
change I'm the charter. the City Council
conducted operations during the
greater portion OF the year on Dor
rowed money. When the floating debt
became burdensome, it would he
funded and thereby added to the city's
bonded debt
Under the charter Change very
wise one ~ faithfully observed---the
city Council is expected 10 conduct
each fiscal years operations on a
strictly cash basis. without the crea-
ton 90 a dollar Of floating debt ex-
cept IN the event Of an unexpected
emergency. Indeed. II is not lawful to
create floating debts otherwise. Why.
a. may be asked. has It become the
rule for the city's fiscal year 20 wind
up with disheartening deficit in
stead OF cash balance?
The answer may be made In one
word: Cowardice. The City Council
Is afraid. each year. 10 fix tax rate
mfy,cicnt 10 carry on n years opera
lions on n cash basis. Also, Il makes
the mistake Of deliberately providing
for appropriations which cannot be
fully covered by the receipts OF the
year nj the tax rate agreed upon. The
dcncl,. therefore, cannot be evaded.
II IL not a difficult task to conduct
the financial operations Of the city ad.
mini.trntion on a cash basis. as IN,
law requires. The Council has full au'
,hori,y. complete freedom OF action
il makes the appropriations and &
determines the tax rate. II may A.
the tax rate at figure that will, il
nddition 90 the revenue from sources
other than the taxation ~ real estate
. bring IN money enough 20 cover al
the appropriations to the last dollar
When this Is done there will be m
deficit. but cash balance AT the en'
Of the year.
The tax rite Is a bugaboo 20 IN
members OF Council. They fear (
add a single cent to II in these days
because they know Il is high enough
and they know the people know it
high enough. Being elective official'
the members Of Council fear 70 incii
the wrath OF the taxpayers by increas
inr their tax burden.
And 40 the farce goes on. and ther
IL no indication that the present Cit
Council VIII inaugurate a reform.
could do so by applying heroic rem
sdice. These would consist OF: Firs
pairing the appropriations to the low
sst level. no matter II some publ
Interests should suffer for year
sccond. by imposing tax rate TIA
would bring In sufficient money
cover The total Of these appropriation