Evening star., 1932-08-21
PASADENA SLASHES
COSTS 13PER CENT
California City's Budget Is
Reduced S350,OOO in
Single Year.
Special Dispatch to The Star.

Special Dispatch to The Star.
PASADENA, Calf, August 20 (NA
NA).-Operating expenses for the gov
ernment of this city CT $4,000 inhabi-
tants, meaning all expenses which the
board of city directors had power to re-
duce, have been slashed Slightly more
than 13 per cent in the 1928 bud
get. details of which were announced
yesterday.
When taxpayers receive their next
tax bills in October, they will find the
total amount of the city tax to be II
per cent less than last year
The foundation for curtailment OF
lavish civic expenditure was laid last
December when voters, led by group
of 300 prominent citizens, recalled the
entire sevenman board of city directors
and elected a new board composed OF
business men by a landslide Of ballots.
The assessed valuation of the city was
reduced II per cent, now being Sl55.-
100000. or approximately thrce-fourths
Of the price which would be obtained
b. rcliing the property on time-pay-
nlcnt basis Then. instead CT raising
th7 general city tax rate. it was reduced
from 95 cents to 90 cents.
Tcrccd to Take Action.
It must be understood, according to
N. B. Phillips. city controller of ac-
counts that the city had no alternative.
Cue to the decreased assessed valuation,
but to raise the tax for interest On Pas
adena's $4,000 900 bonded indebtedness.
Thus. the decrease in the general tax
rate was Just about balanced by the In
crease of the bond interest tax.
In general. it was only through CITY,
wide team work. entailing salary cuts,
and rigid economies in purchasing sup
plies and making capital outlays, that
the city budget has been reduced $3.50
600 in a single year. The new budget
totals Sl,789,072, compared with the
1882 budget of S2 139,072.
OF this S350.000 budget reduction,
sl2O 600 is represented by voluntary
AM involuntary reduction of salaries.
Although, in certain instances, SAL
cries of a few city employees were rails
&c. the great ma jority received 10 per
ccn4 salary cuts. Salaries OF the police
and fire departments could not be
slashed without vote by the people,
but realizing the necessity. both de-
partments voluntarily asked for a 10
ror cent reduction rather than force
the city board to obtain the same result
by curtailing personnel.
Another $4,000 saving was achieved
by pairing general operating expenses
to the vanishing point. For example,
the park department agreed to forego
erection Of new greenhouses, and other
departments used obsolete forms in
stead of expensive paper for memoranda
pads.
Cut More Than 100000.
Through the simple process of de-
Gliding to eliminate street work. funds
for which could not be oesained from
the county. and bv buying and erect
ing next to nothing. outlay, or cap
ital expenditures were shaved more
than 100000. Additional savings were
effected by eliminating certain sine
cures and combir ing other positions.
An important factcr in the local sit
uation is that both the Municipal Light
Department and Municipal Water De-
psrtment are self sustaining, so that
savings effected in both these depart
ments are not included in the fore
going. The light department profits
have been applied to the furnishing OF
work for unemployed residents, that
department recently having set aside
S500.000 for that purpose.
With a view to having the entire
city labor as q unit to complete sue
cessfully the economy program. COM
nlittee OF 70 business men ana women
was appointed which represented every
major group and included labor leaders
Before the budget was passed, it was
scrutirized by special tax committee
composed of city director, banker
and a certified public accountant. Con-
troller of Accounts Phillips and City
Manager J. w. Charleville are reported
to have conferred with members OF
these groups nightly until midnight for
the last three months.
OF almost equal or more importance
to all local taxpayers than the curtail-
ment of all city expenditures is the
slashing at the same time of the ciCy
school budget by almost s5o0,000. The
school tax is included in the county
tax bills, but local residents. it is said,
will obtain the major advantage of this
savings also.
tCopyright, 1882. bv North American News
paper Alliance, I.c.J