The Waterbury Democrat., 1938-11-17

Prospects!
 But the final figures on all city budgets will depend more on the general picture of the city's financial prospects than on estimates of either the departments or the fi- nance board conferees in the early stages of these considerations.
 That the tax rate will be iHl- creased by three mills is the present prospect, this to provide payment ot about $500, 900 in maturing bonds next year, as well as to Luderwrite the $38S, 900 deficit. which must be figured into next years budget. The "deficit", however, actually will be cancelled by returns to the sur plus resource sinking fund. Statute requires that the deficiency be fig lred as of May 1 this year in spite of the considerable amounts collected for the sinking fund by the finance board and tax collectors drive for back taxes.
 The finance board and Griffen- hagen officials will meet again to- night at. 7:30 o'clock to resume con- alterations of the budget estimates of the various departments and the check made on these by the Griffen- hagen auditors. There will be no meeting toforrow night, probably none Saturday, but the considera- tons will resume certainly on Mon day.
 The surplus resource sinking fund, estimated to total about $500,000 by December 31, is expected to cancel the $583 900 remaining as deficiency from last year and to care for 8 portion of the payment on maturing bonds, the latter dating to 1897 issues. The finance commissioners, now meeting as g committee of the whole, apparently have dissolved the economy committee which, in con- junction with the board and Grif- ferihagen, has effected economies in the persept years budget well in excess of $4eO000i
 Increase Rate
 Regardless of the favorable aspect of the city's financial condition at this time, as compared with the earlier crisis caused by over-appro- priatiens, improper placement of the sinking fund item of $300,000 as revenue, increased costs of depart- ments beyond the budget estimates, the maturing bands provide main reason for the presumed increase in the tax rate from 31 to probably S4 mills.
 While Griffenhagen & Associates have pointed the way in which the city can economize in the matter of overhead of the largest departments, there has been a somewhat general rernonstranOe over carvings of per- sonnel, closing of public buildings, and the like. The Griffenhagen of- ficials have remarked that these recommendations are outlines of what economics are possible and the sentiment of the auditors ap- pareltly is that the city must de- termire how much 1t wishes to pay for government and services, ac- ceptiilg or rejecting proposals after consideration of the cost.
 These are the basic matters, too, which will be component to estab- fishing the tax rate, along with the necessity for payment of the bonds.
 The board of finance has been functioning on a "pay-as-you-go" basis, contrary to procedure in other years when refunding bonds were anticipated as forthcoming from legislative approval. In spite of the considerable burden of cumulative indebtedness which confronted the board at the first of this year, next months balance sheet Is expected to show practical solution to most of the earlier financial problems, the commissioners believe.