The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1945-10-23
EXTENSION GROUP
ANSWERS CRITICS


group opposed to city limits ex
tension that the city govern
ment is not in a healthy financia
condition., spokesman for thu
Citizens committee for City limit:
extension said yesterday that 1.-THE
city has seldom if ever been in q
sounder financial position.
The committees declaration was
in answer to a charge levelled al
proposed city limits extension last
Friday night by W. X. Rhodes,
Jr., chairman of the organization
opposed to annexation, who de-
clared that the cost of city gov
eminent was increasing steadily
and that no effort was apparent
to balance revenues and expendl
lures.
Proponents of extension, through
their committee chairman, Har.
grove Bellamy, denied Rhodes
allegation, and in prepared state
ment today offered their view OF
current municipal finances. The
statement follows:
Our committee hopes that in
the current public discussions OF
the city limits extension proposal
there may be strict adherence to
the facts. From newspaper &C
,poonfir nf OnpnC1
tionists a few nights ago we fear
that this has not been the case.
It appears that statements were
made which were intended to
leave the impression that the city
government is not in a healthy
financial condition. We feel that
the public is entitled to know, if
it does not already know, that
the exact reverse is the case; that
the city has seldom if ever been
in a sounder financial position.
Since 1941 the city has built
up it's sinking fund from S153, 399
to $720, 717.52, an increase OF
S567, 317.52. This fund will be used
to apply against s1,0Oo,Oo0 of term
bonds maturing in the years 1913
SIS. Previously almost no provision
had been made for the retirement
of these bonds.
During the same period, the
titv has set up a special capital
reserve fund of 100000 which is
held on hand for use in connec-
ton with post war improvements.
During the same period, l94l.
IS, the city tax rate was reduced
as follows: $3.50 in 1941, $1.40 in
le45
1912, S1.35 in 1914, and s1.35 in
During the same period the
city has spent S2,859,oO0 in capital
improvements to its water and
sewer system. This covers the cost
of the Kings Bluff water line,
a new filter plant, a clear reser-
voir, and water and sewer main
extensions. No one will contend
that these improvements were not
necessary and desirable, especially
in view of the crowded wartime
conditions. The city paid 40 per
cent of the cost of these improve
ments and the federal government
go per cent.
"In spite of all these things the
city has increased its bonded debt
from 1941 to 1915 by only $1,038,-
600, or from $2.815.500 in 1941 to
So, 953, 500 as of 'Tune 80, 1915.
Against this must be applied the
increase in the sinking fund. Those
who undertake to criticize the fl
nancial position of the city must as
sumo the responsibility of saying
also whether any city government
would have ~efrained from making
apital expenditures on the water
and sewer system, or from setting
aside sinking funds and capital
reserves. These things are either
good or bad and the people are
entitled to have the opposition
lists say which.
"a statement is attributed to the