The Wilmington morning star., 1945-08-04
Council Gives Tentative
Approval To 1915 Budget
Continued from Page One)

Continued from Page One)
past 10 years. Records show that
the rate never has been above
$1.5O, but had varied from S1.4O
to $3.50 until 1913, when it was
reduced to $1.35 at which figure
it has remained. 1t was pointed
out by officials that property taxes
amount to something less than one
third of the City's overall budget.
Records also disclose that the
tax rate, while dropping from
$3.50, but had varied from 81. 40
added to the Sinking Fund, nearly
only half million dollars, which
Is IN excess of three times the
amount which had been placed in
the Sinking Fund in the 30 years
prior to that time. At the same
time, and out of operating funds
IN three-year period, more than
$30O,OOO has been added to the
property, plant and inventories of
the City, and placed 100000 in
capital reserve fund for postwar
use.
Members of the Police Depart
ment, who had asked repeatedly
tor a more substantial raise than
the S., will receive the same
amount as othe~ City employees,
but appropriations were made to
provide for eight-hour police
shifts.
City Manager A. c. Nichols was
Instructed by the Council to have
Chief Charles Casteen make prep
arations to place the department
on an eight-hour basis, effective
January l.
No change was made in the bud
get, although it underwent rigid
examination by members of the
Real Estate board and other inter-
ested persons this morning.
Frederick Willetts, chief spokes-
man for the realtors, questioned
council members this morning as
to when they planned to adopt the
budget and was told by City Trea-
surer LeGwin that the city Of
ficials planned to approve it Mofl-
day. The reason for the change of
plans on the part of the council
could not be ascertained early this
afternoon.
Emphasis was placed on four
phases of the budget by the Real
Estate group. They were: the con-
tinuance of the $1.35 tax rate, the
$4,000 by the city and the $4,000
by the federal government being
allocated for recreation, the carry
ing over of the .:146,000 surplus ID
wards this years budget, and the
amount being appropriated for
planning.
City Attorney W. B. Campbell ex-
planned that the $146,00O, according
to law, had to be applied to the
budget. Willetts contended that at
least 100000 of it should have been
set aside before June 80 when such
action could have been taken.
SIS it perfectly clear in your
mind that there is nothing this
board can do in regards to that
one item?" Campbell asked the
realtor. The attorney went on to
explain that the setting aside of the
surplus in June would have in
creased the tax rate by 2. cents.
II can't see much chance of a re-
duction in taxes if you adopt the
budget, and no chance of a sur
plus. I think that, regardless of
the law, you should consider that
not as income for 1856, but as
surplus from 1944-45," Willetts re-
Piled
He was told by the attorney that
1--WE can't operate and meet the de-
mands of the public on any less
money"
City Manager Nichols, addressing
the realtor, said, Il wish to point
out that if you will cast your eye
over those figures you'll see th-t
we've preserved that surplus pretty
WE'LL
Campbell pointed out that t.
law makes you bring it over so
the taxpayer gets the benefit of it
in the next budget.
A rather heated debate as to
whether or not the city was living
on it's income then ensued between
members of the council and the
Real Estate board.
One realtor contended that you
aren't living on your income if you
have to use the :'4f, O0O," to which
Campbell replied, Suppose you
take every dollar of the S146, 600,
how are you going to run the city,
The realtor answered that ''you
either increase your tax rate or cut
expenditures
Campbell declared, That's SO
obvious it's not even debatable."
Still another member of the Real
Estate board said the city actually
was increasing it's tax rate In a
sense by 30 cents, but didn't have
to officially do it because OF the
surplus. He said the surplus would
be absorbed and the increase
passed on to the taxpay ers nex'
year.
At that, Campbell told him tina
"you omit all other incomes II
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