Show ACTUAL BANKRUPTCY NOW NOVi 81 STARES CITY IN THE FACE Overdraft in the General Fund Alone Is and Total Overdraft Is Over Municipality Point Where Legal Barriers S Will Prevent Any Further Exp Expenditures Financial Condition of City Credit balances Funds June rJ 10 May 11 1 June Juite 30 00 May 31 Contingent 1 Water ater supply Waterworks 31 I Streets 78 Sewers Library Total overdraft general i 3 Total credit balances general funds Net total overdrafts general funds m Note The net total overdraft for tor each period is found by from the total overdraft that amount of credit balances at that time From the State Constitution No debt In excess of taxes for the current year shall be created by any city un unless Unless less the proposition to create suck such a debt shall have been submitted to a vote ote ot of such Qualified electors as shall have paid a property tax therein In the year pre preceding preceding ceding such election and a majority of those voting thereon shall have voted In ta fa favor vor VOl of Incurring such debt Constitution article xiv section Expected revenue contingent fund S fOO contingent fund Amount that can still be overdrawn without vote ote of people Amount overdrawn In June Approximate time when at present rate of expenditure the city will fall to meet its obligations about August 1 From that time on all warrants warrant Issued t the contingent fund will be Invalid If the overdraft exceeds as exp expected teJ Salt Lake City is In debt Dur DurIng During Ing the month o of June the overdraft In the general funds fundo was 52 At this rate tile the American party will face tace an indebtedness of halt a million dollar dolIar when the tax settlements are aN made In Novem November November ber This will eat up th tIle expected reye flue of and leave leae to run the government for another year eal The figures given above aboc indicate cor the tue exact financial condition of the cit city a at the close of If June 20 10 as compared to the at the close of business lIa May 0 The figures were corn com complied plied piled by George Hancock deputy city au auditor and are absolutely authentic But the city faces a far more seri serious us situation than the fact that the Incoming administration will be compelled to do business on nothing At the present rate of expenditure the contingent fund will willbe willbe be overdrawn at least 2 by August 1 As indicated above the overdraft is now During the month of June the overdraft waS Increased over oel the overdraft May layt 1 It Is estimated that the JuI addition to the overdraft will the total up to as It will take less than the JUne record to be exact lii to do that Overdrafts Must Cease Then all must for the wildest hopes of the administration do not estimate this years revenue for that fund at t over over Last year It was The legislature has fixed a limit of millS mill for the thc tax lev levy that can be made by a city for contingent expenses Estimating the assessed valuation at for 1007 a generous estimate the contingent fund 1 would just reach the figure indicated TIle The section from the constitution quoted above I forbids a city elty from creating an any debt in excess of its taxes for the year unless the proposition Is submitted to a vote of the taxpayers In all probability on or about August 1 the contingEnt fund will have been overdrawn to at It least the amount of the expected revenue accruing to that fund After that time all warrants issued b by bythe the city auditor will be Illegal contractors cannot be paid the city must go without their mone money laborers on the streets will have to quit work unless they work for drivers of street sprinklers sprinklers lers who cannot afford to walt wait for better times to secure their pay will cease keep keeping keeping ing the dust down the street engineering and waterworks departments will have to give uP and In fact nearly every branch of the elt city government will be crippled unless the proposition of exceeding the debt limit is approved by the tapa taxpayers ll Chance to Dodge Xo No doubt an attempt will be made to dodge the issue b by asserting that the constitutional provision referred to dO does S Snot not apply to any single fund but to the entire revenue of the tho city The suprEme court however Is hot expected to uphold this contention for the tax levy for the contingent fund is authorized b by a special legislative act and is tails In a way set apart from other eit city funds In the case of Fritsch vs 8 tIle the county commissioners 47 Pac 16 the Utah RU preme court laid down the doctrine that a L county exceed Its annual revenue and thereafter create indebtedness equal to tile next tax levy nor float a debt over overto to the next year ear to be paid out ot of Its rev revenue without a vote ote That warrants or bonds Issued i illegally are Invalid and per perSons sons receiving them are arp not Innocent hold holders ers era and that taxes assessed for any year but collected after Its be to the s of that year ear May Invoke Courts With Ith this decision confronting receivers of warrants after the contingent fund i is overdrawn beyond its limit there wilL no doubt be a refusal on the part of all those thos owed b by the city to accept this form of payment and the matter will wiH no doubt K go goto to the courts the council Its Is willing willingto to acknowledge that by Its extravagant of the affairs ot of the city it has hail plunged the people Into an al 81 almost most mOlt hopeless mire of debt which admin adminIstrations adminIstrations will have to struggle with for years eaIl to come There Is also a provision ion In the th penal code ot of the state section which would effectually prevent the auditor from tak takIng taking Ing any risks in issuing warrants on the thA contingent fund In excess of the income This section n makes It a felony felon for any officer to fail to keep public mon money mon moncy ey cy In his lihi until disbursed or r paid pahl out by authority of law Jaw The same Ame pro provision pr vision would applY to the treasurer who would not honor warrants of this Uris charde charat ter drawn by the auditor under tinder direction of the council Situation Unprecedented Perhaps never before fore In her history ha has Salt Lake been In such a tangle ned and the elid eid Is not yet As far as the other funds enumerated above are concerned their condition at present hardly borders on the danger line as does doe the fund The water supply and waterworks fund overdrafts have not been extensive during June Junt and the waterworks fund will be replenished as soon n as the mid midyear midyear year taxes from water users are collected The street fund Is however pr in a bad condition having been reduced by about 2000 during June Out of this fund must be paid the cost of the per por portion tion ot of all special Improvement work The rhe board of public works only YESterday ap approved approved proved of contractors estimates am amount lug ing to about TjI 75 o of which the portion will be nearly With the tho running expenses of the street depart department meat ment taken Into consideration and other expenditures for improvements during the month the street fund will no doubt show an overdraft by August 1 The sewer fund fumI was depleted but litH during June but when the which must be spent on changing water mains mainson on the north bench Is taken from Jt It there will be a considerable overdraft The 11 fund Is Immaterial |