Evening star., 1934-07-02
TAXRATEO Of $1.1
REMAINS DESPITE
LOSS0F SURPLUS
D. c. Commissioners Act on
Recommendations of Mai.
D. J. Donovan.
ADDITIONAL REVENUES
HELD NEEDED FOR 1886
Alternative Is Levy Increase, Au-
ditor Reports-Lump Sum
Suficiency Questioned.

Continuation Of the $1.50 tax rate
for the current fiscal year was or
dered today by the District Commits
sionerS, despite a financial report
from Maj. Daniel j. Donovan. au-
ditor and budget officer, showing that
the once huge surplus Of unobligated
tax revenues would be almost entirely
wiped out by the close of the year.
The Commissioners fixed the S1.50
levy on recommendation of Mai. Dom
ovan, who pointed out that had not
the District started the new fiscal
year with a surplus Of $4,348,524, a
higher rate would have been inevitable
this year. Donovan, however, de-
clared that additional revenues would
have to be forthcoming from other
sources in the 1886 fiscal year to pre-
vent a tax increase.
Had not it been for the surplus
Of s4,34S,524 in 1885 drought over
from 1880" Donovan declared, sit
would not have been possible to con-
tinue the $l.50 rate in the 1885 fiscal
year. AS shown by the statement pre-
sented earlier in this report, the reve-
nue. surplus at the end of 1885, based
upon conditions as they can be fore
seen at this time, is only S29,363.
Surplus to Be Lacking.
'This means that the fiscal year
1895 will commence with practically
no surplus, and the District must de-
pend wholly upon current revenues for
that year in framing the budget. And
this, in turn, raises the question of
the sufficiency of the Federal contri-
button, and whether or not new
sources of revenue should not be de-
vtsed-through legislation-to keep
from increasing the tax load now car
ried by real property. These are mat
ters which might very well be consid-
cred at the time the Commissioners
hold their public hearings on the Dis
trict budget for the fiscal year 1886"
Donovan's report, covering Is MIN
eographed pages, reviewed in detail
the Districts financial situation from
the 1888 fiscal year and explained the
various factors that are destined to
| wipe out the surplus for this year.
These include the increase in the 1885
appropriation above the amount rec
ny lllc DuN6Cb
restoration of 10 per cent Of the Is
per cent salary cut, the return of
81 900, 900 Of P. w. A. funds to be bor-
rowed for construction of a sewage
disposal plant and other urgently
needed projects, and the reduction in
the Federal contribution due to the
congressional mandate requiring re-
payment of 20 per cent of the P. W. A.
grant in the last fiscal year for sewers
and park improvements.
Savings Put at $1,000, 900.
Donovan also made particular ref
erence to savings to property owners
| through reduction in the tax rate in
the last fiscal year from $1.70 to
$1.50. He estimated these savings at
S4,60000O In addition, he said, there
were savings of $1,566,000 resulting
| from a reduction in the assessed value
| of real estate and savings from dis
count on promptly paid water bills
last year and a IS per cent reduction
in water rates this year, coupled with
an increase in the metered allowance.
Altogether he estimated the savings
for the two years at S7,200,000.
The fiscal year 1885 starts with
the revenue surplus of $4,S48,524
brought over from the fiscal year
| 1884" the report declared. 1.-The esti-
mates of appropriation charges and
other obligations payable by the Dis
trict, and CT the Districts revenue
availability for 1885. are modified in
this report as compared with the eSti-
mated figures used before the Budget
Bureau and the Appropriation Com
mittees of Congress. The previous ap-
preparation estimates were based upon
the Districts budget for 1885 as sub
mitted to Congress by the Budget
Bureau, while the present estimates
are worked cut on the basis Of con-
greSsional action on the budget and
! the passage of new legislation. The
earlier revenue estimates for 1885 have
L