The Waterbury Democrat., 1938-11-17
Finance Board Praised By Good Govt. League
tContlnued arum Paee Q


 were not actually received. ....s.,ss......,...4.. e32O, ,TS0J00 Additional expected deficiencies (Comptroller's EstiInate) es0,Oo0.O0 --e400, ,7e0OO.
 3. A large deficit in 1osa in the Department of Publis Welfare, from unexpectedly large demands, estimated at 4l6OI IOOOO0. Total. ei,- Os2.l1O.1t.
 The problem facing the Admin istration was the raising of well over a million dollars.
 To meet this there were avail able:
 l. The Surplus Resource Sink ing Fund, into which are paid all back taxes collected and certain other receipts. and which by law must be used titst to pay any dee fiicits existing from former years.
 2, Any savings that could be made in amounts appropriated uIl- der the budget for running ex- peilses.
 3. Possible cuts in pay of city employees.
 4. A special tax.
 What has actually been accom- plished is:
 l. The tax collector and tax at- torney have made vigorous efforts to collect back taxes. The status of the surplus resource sinking fund is: Balance on hand Jan. 1. 1898, $7l.704.o4; collections Jan!-6ept., inclusive, 43S1 ,67D.13; estimated collections Oct.-Dec inclusive, 4o0,000.00: total, SS13.- 444.07.
 2. Savings made in running ex- penSes and from current appro- priations, less amounts reapprO- priated by transfer by board of finance, ei74,6S70l.
 3. 10 per cent cut of all wages and salaries, $iSO, ,642.30 (effec- tive for seven months only), total, $868,643.45.
 This shows an apparent net de- flcit in the general fund of the city as of Dec. 31st, 1888 of $213,- 466.66, which may he reduced a little by further economies. The board of finance believes that, as this deficit is comparatively small, . special tax in 1898 is not justi- lied.
 This apparent deficit is $287,- 8g3.45 less than at the beginning of the year.
 In other words, during this year our city will live within its cash income and actually save $2e7 ,0D3, which will be applied toward pay- ing former years deficits. There seems to be absolutely no reason why the ordinary running ex- peIlses should not be held down and also considerably reduced in 1899. It is the duty of every citi- zen to insist that this be done.
 In spite of all this, 1e30 will be tough year for the taxpayer. The law provides that a deficit exist ing at the beginning of any year, which is not cleared up by May 1st, must be included in the bud get of the following year, even if it has been reduced or eliminated between May list and December 3lst. On May list, 1888 the unpaid deficit for 1887 was about $3S3, ,0OO. Controllers figures). In 1898 $695 500 of bonds became due. Of these $50O,0O0 wer repaid by is- suing funding bonds" This means borrowing from Peter to pay Paul, and only $l95 900 of bonds were actually paid out of current income. There are $548,500 of bonds coming due in 1939, and no provision for funding bonds, even if 1t were good policy to is- sue them. A city, like its citizens, must eventually pay its debts.
 There must, therefore, be set up in the 1889 budget, in addition to ordinary running expenses and in- terests: The balance of the 1897 deficit, $4S4 100000; bonds due, $e48.50o,00; total, sl,s31. .5o0.o0.
 Without attempting to anticipate the action of the aldermen and board of finance, this looks like a somewhat higher tax rate next year
 The longer term view is a little more cheerful. The 1888 deficit should be wiped out by the sur- plus resource sinking fund by May 1, 1s39, and there seems to be no excuse for deficit iil 1889. Bond maturities in 194O are not so -.