The Wilmington morning star., 1947-09-06

constantly reduced, and now tina
things have more or less stabaliz
ed themselves in Wilmington ant
our war population has passed gu
of the picture, there is certainly
no prospect of an increase in reve'
nue. accruing to the City from thu
operation Of the County ABe
Board.
Much has been said in the pa
pers during the past few day:
about the possibility of the bulge
being substantially reduced if ar
item-by-item study and a more
serious consideration Of the bulge
was given. Further that the budget
estimate of $3.50, 000.0 90 in receipts
from liquor stores was too low
that there were more liquor stocks
available now than last year.
MY investigation of this whole
matter disclosed the following:
"Firt, the inventory Of the ABC
Stores on June 80, 1916, was $304,-
984. IL against tine inventory Of
June 80. 1947, 1875, 805.21, actually
$119, 1881 less than a year ago.
Second, the council approved a
budget of expenditures for the fis-
cal year ending June 80, s1947, in
the sum of $1.493, 66O.41 and esti-
mated income in the same amount.
Included in this estimated income
was surplus funds accruing from
the previous fiscal year in the
amount of $67. 1896. y. There was
also included in budget receipts
the entire balance of the Capital
Reserve fund in the sun of $S2,-
900. 90.
This Surplus fund and the Capt.
tai Reserve fund represent monies
which have been saved from pre-
vious years operations, and not
receipts currently arising in the
last fiscal year. This discloses at
least $3.50, 900. 90 of funds expended
last year for which there are no
anticipated receipts this year to
cover.
Further, last year the council
estimated that the City would re-
celve from the county ABC board
$500, 000. 90, when, in fact, it re-
ceived only $3.50, 0oo. 90; and l am
advised by the chairman Of. the
ABC board that the council was
advised through the city manager,
Mr.. Benson, that the latter sum
of $3.50, 000.00 Was all they could
expect to receive from the liquor
sales this past year.
Thus, i is unacceptable hat the
City is She. in estimated revenue
and in accumulated assets for the
current fiscal year at least the
sum of 5000, DOC. 90; and there is no
new source of revenue to supply
this 5000, 900 90. except by an in
crease in the ad valorem tax rate
in an amount sufficient to produce
the $500, 00O.00 as a minimum.
Gentlemen, if you will stop and
analyze the statement l have just
made, you will readily see that if
the council, last year, had been re-
quired to depend upon current
revenue to have balanced its bud
get, it would have been required
to increase the ad valorem tax
rate in the sum of at least forty
cents of the $1,000 valuation.
However, instead Of doing that,
they used the surplus funds and
the reserve funds as curren in
come and prolonged the day Of
reckoning from last year until this
year to raise the tax rate. l can
understand why one of tine
former members of the council
stated to me before l was elected
to the council that it was inescap-
able that the tax rate had to be
raised this year.
AFTER months of study of the
cost of operation of the City Of
Wilmington, and taking into ac-
count the cost Of required services
for essential administrative func.
tons. fire protection. police pro-
lection, street maintenance, funds
essential for the public health. and
funds to pay for medical care and
disqualification of charity cases,
the fixed City debt service obi
cation, the essential contributions
to existing pension funds and the
other required costs as shown in
the budget, it is clear that the
General fund of the City cannot
be reduced in any material sum,
and that at least the total amount
shown in the proposed budget is
required.
THE delay in adopting the pres
ent budget has solely occurred be-
cause of the determination Of the
council and the city manager to
carefully study every item of ex-
penditure and every prospective
receipt, so that when the budget
was adopted we would be satisfied
4Lzl H. ~a.a,o - -o,,a-. IT,