The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1932-04-08
CONTROLLER ON
CITY FINANCES
Address Before the Mad
River Grange in Mill
Plain Last Night
HIGH PROPERTY TAX

Ninety-three per cent of the in
come for the current year with
which to carry on the municipal
ity's business will come from gen.
eral property taxation, Controller
Daniel J. Leary told the members
of the Mad River grange last night
at q meeting held at the Mill Plain
hall last night. Advancement OF
the dates for collecting taxes was
recommended by Controller Leary
as q means of aiding municipal
financing.
Due to the present dates of COL
lecting taxes. he pointed out. the
city is forced to operate from jan
uary to May of each year mostly
on borrowed money, costing much
interest, whereas if taxes were due
and payable in January this situa-
ton would be avoided.
Controller Leary's talk last night
was an enIightening one to the
members of the Mad River grange.
He analysed the city expenditures
and the current budget and went
into detail in explaining the neces-
sity of the recent loans. He offered
tables showing the distribution of
appropriations in :. the current
budget and explained the sources
of revenue.
''The present depression" he
said. .is the result of over-expan-
sion in prosperous times. This was
true of government as well as OF
business. High wages gave rise to
higher prices for commodities;
these in turn gave rise to profits
which in turn were invested to
build plants for increasing produc-
ton. So the process went on until
we had a surplus of production for
which there was no demand. After
the business activity slowed down
people began to take inventory and
found they had made purchases
for which they were still trying to
pay. 1t was the same case with
city expenditures.
prosperity created a building
boom. New sections Of the city
were developed. This necessitated
laying out of new streets. new
water mains, building of sewers,
increased fire and police protection.
The increased use of the automo-
bile brought demands for better
highways. 1t was inevitable that
both public and private expendi-
point. The pendulum has now
swung the other way. To-day, the
people are tax conscious.
'In spite of the tremendous
financial problems confronting gov
ernments to-day, life and property
must be protected; public health
cannot be impaired; schools must
be maintained and the administra-
tive functions of the government
carried on. To do this requires
money and the problem of raising
it is the most difficult one for all
governments. The federal govern
ment receives most of its revenue
from income taxes, customs and
duties. The states resort to income
taxes in some cases and to taxes on
corporations, cities and on fran
chises in practically all. The city
must rely on general property taxes
as the main sources of revenue.
Bonded Debt OF $17,849.OOO
Waterbury had a bonded debt
on January 1. 1880. of $17,S49.000.
including water bonds which
amounted to $7,6S5,O00. Its bond
ed debt March 10, 1892. was $15.-
100000, including water bonds
amounting to $7,201,000. The
bonded debt during that period
was reduced $2,069,000.
1.-THE present city administration
took office January 1. 1880.
pledged to strict program of
economy. A thorough study of
municipal expenditures was made
and many economies effected so
that during the first year it lived
within appropriations to the extent
of $4,000. That is. it spent this
much less than it was, authorized
to spend. A concerted drive to col
lect back taxes brought good re-
suits and the program was fol-
lowed during 1881. While the
financial statement for 1881 shows
an over-expenditure of $204.000,
the largest part of this excess was
due to the unusual demands on the
city treasury for public welfare
work and to the unemployment cit
uation which necessitated giving
as MANY people work as possible"