The Waterbury Democrat., 1938-10-12

bonded indebtedness of Waterbury was $i7,o40,000 and last Decem- Der 1t was sl7be9,800, These iig- ures, although not related in the imminent important oonsidera- ton of what confronts the city as financial expectation next year, are the basis on which that oon- alteration Is built,
 For ieSe finds maturing bond Issues dating back to 1908, Q num- Der in 1909 and 1910, many more issues sold during Republican and Democratic administrations alike. And there Is no provision by any general assembly for funding bonds to underwrlte the current debt of the year,
 S.Mlll Tax
 Some, taking the political slant in spite of attempt of the board of finance and the Qriffenhagen and Associates experts to keep fion-partisan the present over- hauling of the elty's financial structure, are predicting that an additional S-mili tax must be laid to meet the approximate se00,000 which will have to be raised next year.
 This Is not q true picture, nor can 1t be, financial men told The Democrat today, because, the bud- gets for the year have not been completed showing what the set expenditures may be as against revenue. It is not a true picture, either, for the reason that c tax rate might Do set provisionaliy with presumption that Q special tax could be laid should applica. ton to the legislature for . re- funding bond issue fail Of passage. And this last Is not likely, in the sense that it is up to the general assembly to provide constructive treatment Of the towns and cities.
 Should 1t be voted by the board of aldermen to apply for funding bonds Of, say, eb00,000, in order to keep the tax rate ct the present figure, 3f milis, then 1t is deemed probable that tho general assems bly,, in light of the new financial structure rising from the aeeum- ulated debts Of other years, would accord consideration and ap. proval.
 But that S taking Into the pic- tuFe matters which have yet to Dc formulated Into definite pattern. The picture of the 1889 situation Is not dry, in the sense that any taking part in it's devising can tell what to expect from the finished pattern.
 .,o Cash Deficit
 On p6per there is shown,a Tee maining 1887 cash net deficit of S383, ,000, for instance. Actually, 1t Is no such thing. The charter provides that deficits shall be charged to the first four months' revenue of the surplus resource sinking fund; thus, providing only partial payment Of the gross deficit of about e563.000 last year, which includes overdrafts of ap. propria tions in addition to unpaid bills and such. The net cash deficit, however, was really about $4e2,000.
 Presently, there remains only about $e0, 1000 actual deAcit, due to receipts of S32i 900 to the surplus resource sinking fund for the first eight months of the year; $S4,000 more last month. But the sum $3e3, ,000 must be set up as an item of debt in the 1889 budget, the receipts of the sinking fund to apply thereafter.
 Probably, the surplus resource sinking fund will show . surplus beyond the net cash deficit. But on the red side of the ledger is the $300000 item improperly set up this year as revenue from the sinking fund. This will not ap- pear on the 1889 budget.
 Simply, and in the form of an estimate taken from summary of possibilities voiced by various in- terested in Waterbury's financial future, 1t appears that about $e00,- 900 additional revenue must be sought. It may be considerably less, probably will not be more. Five-eighths of this will be for retiring a major portion of ma turing bonds.
 Those making political capital of the plight of the city have been guilty of tactics very like those they charge to others in calling attention to financial gain in Wa terbury's structure. The threat of additional taxation comes at a time when only a crystal gazer could unfold reality for such premise.
 No Consideration
 The attack comes, too, without mention of the intensive economy of the finance board to better the present years condi- ion: to devise absolute assurance hat the city in the future. will be ,n a basis tending toward healthy financial condition: and this means elimina ton of large inter- st payments for bonds. when cur ent revenue can be found to pro- tide cancellation: modern budget ng of all city departments: a 'ractical and effective manner of administering city affairs at