Evening star., 1932-08-07
CITY HAS S4OO,000
SURPLUS REVENUE
Louisville to Repay Employees
Cut in Pay and May
Reduce Taxes.
snecia1 Dispatch to The Star.

Special Dispatch to The Star.
LOUISVILLE, KY. August 6 (NA.
MAJ ).-Louisville will face its new
municipal fiscal year September l with
a cash surplus of more than S4OO
the ma ajority of its employees Will be on
a full salary basis, and the taxpayers
are looking forward to another reduc-
ton in the tax rate by the END OF the
year.
Checks are being written for $4,000
to pay refunds to 1900 employees put
on a 10 per cent salary suspension
January l. The employees were prom
ised that should they effect economic,
and the tax payments be sufficient,
despite a tax drop from $23.40 per
81 900 of assessed valuation to $3.50
and per cent cut in assessment
values, they would be given the back
pay.
This proposal was made. by Mayor
Harrison in the closing days of 1881
and the effect was instantaneous.
Economies were effected in all depart
ments. Approximately 100000 was
Topped off the city bills and pay rolls.
The savings came from the city buyer
watching purchases, the falling COM
modify market, positive acts of the
employees such as curtailing gasoline
supplies, care in driving trucks and
other vehicles. substitutions of ma
terials not heretofore thought of and
other similar acts on their part.
Taxes Flowed to City.
Then the taxes came flowing in. On
July % SO per cent of the taxes had
been paid, leaving a balance of taxes
outstanding amounting to $887,046 of
the total $8,055 ,945 charged against the
tax receiver January !, 1882.
Louisville must budget its outlayS
under the law. Though the fiscal year
begins September l, the tax rate is
not set, nor are collections due until
January l. The law makes it possible
| to budget total of 95 per cent of the
! expected tax revenues.
/ In the last five years, the total col
/ lections have scarcely approximated the
| full figure and in 1881 the mayor made
allowances for poor collections. He es-
! timated in 1882 that they would likely
fall off sharply and decided to let the
city employees take the chance on
suspension plan, and the plan has
worked.
The prospect was further clouded at
the time the tax rate was set by the
failure of the city to sell the uncol-
lected tax lists to firm which makes
a policy of buying the lists. This
/ caused further Shrlnkage in the pros
pective cash amounting to $200000
! The city itself was forced to buy" in
! these lists, and to date the collections
on these bills have been poor.
Hopes to Enlarge Relief.
With the cash balance of S400000.
the mayor hopes to raise his unemploy-
ment relief outlay to S500,000 and still
further reduce the taxpayers burdens
by either a direct tax reduction or a
blanket reduction in tax assessments
The unemployment relief work last
Winter consisted of spending $178000
directly for wages, $4,000 for fuel and
contributions of $4,000 to relief agen-
cies during the last year.
The men put on a wage basis were
given employment three days a week
at 80 cents an hour and did odd jobs
for the city and eleemosynary institu-
tionS. The results of this work are
visible as the city has been given a
thorough housecleaning. More than
1000 men received work.
The city's financial position is so
sound that it just sold Sl,000,000 worth
of bonds for completion of a sewer
building project, under way for several
years, at a premium amounting to
$1,000. The bonds bear AZ per cent
interest.
(Copyright, 1882 by North American News
paper Alliance. 1nc.)