Salt Lake Tribune | 1917-12-30 | Page 10 | Perplexing Budget Session Predicted

PERPLEXiryG BUDGET SESSIOHJPREDICTED City Auditor Gives Figures on Finance for New Year. A budpt'f, squirm of many prplnxi-t prplnxi-t i'1! i 'a pi !flii'to'i J'or thn city com m is-frion is-frion in I ho month of January by City .Auditor . A . Bock, hi o statement piren out. wit!) tho close of the year tho mi'litor gives figures showing the problem prob-lem that the city f jxohh financially, onn of heavy trimniinjif in current expenses to avoid an increase in tax ratn. Loss of revenue ami the piling up of preferred pre-ferred liabilities that mwA be met next yea r hi given as the rca sons lor the dilemma. Following is Mr. Bock's efcatement: la answer in the tunny inquiries that T am receiving H.t. present an to t he financial condition of the city fioverninont, Hnd also a forecast an to what next year's Ih levy probably tvill he, I have compiled the following follow-ing statement. There have beeD reports re-ports Issued from time to time during dur-ing the past, three months which perhaps per-haps seemed conflicting to those not in i;loso touch with the city's finances. If is only fair to the nowly elected commissioners that the public bn informed in-formed correctly at this time ay to the financial status of the city. The books are pra-l Ically closed h t this Mm'!, which makes this statement Bern Be-rn rate as to the condition at .December .Decem-ber 31, 1H 17. Deducting our preferred liabilities of $isi.ooo from the estimated revenue reve-nue of $l,7."i5,00r) leaves $1,57-1,000 with which to do business in tPlS. (This is assuming that our tax levy will be i mills as in lil7.) The cost of main tenance and opera op-era t ion for If 17, which does not include in-clude one square yard of paving", one foot of sidewalk, sewer, curb anH putter and water main, was $1,- i $10,000. Tf the city is to spend the same j amount for maintenance and operation opera-tion in IMS It will find itself $2,16,000 .short. This would not provide for any reserve for emergencies whatsoever. whatso-ever. At least $75,000 reserve should be provided for, which would bring the shortage up to $:?! 1,000. In the past, years it has been customary to havo a reserve of $125,000 after setting up the budget. To arrive at the per .cent of reduction re-duction that will be necessary In the cost of maintenance and operation, we must first subtract from the tot&K ; "ost. of maintenance arid operation til j fic-l mainteiun'.-e and operating uosi, winch we cannot alter. Interest on water bonds $ 81,312. M ! Tniyrst on Fewer bunds.... 2f,i.S7."-0 T ri f t-ie-t on general bond.; . . !W!,Z-io . 00 Pavilion t and interest on Pu.-jIic Kafeiv building IS, 750. "0 Library rrciidii.iren fin.Of.o.OO Jond sinking appropriation. auwO.O'J K'-iurn of writer main tie-posits tie-posits 4,4!,)'.72 I'l ;ed salaries covered by state MatutR 37.2r0.riO FtreeL lighting 70.unfJ.00 Cost of collating and sji- sesing genera.1 taxes 12,000.00 Maintenance of detention Iioms Jt.fJo0.U0 MifX'C-llaneoua fl.ed charges 12,000.00 Total fixed maintenance and opera t ion rlruires. . ?4S4,07' .72 Deducting $4M,07o . 72 from $1 .SI 0, -000. n0 leaves $1,::25,'"'2 f . lx as a busts bu-sts upon which to compute the per ! cent of reduction required to stay within the revenue as listed above. This per cent is 2;. In the final analysis lha city, without with-out providing for any improvements, as stated above, must reduce its maintenance and operating cost 25 P'-r cent to stay within the same tax levy as it had in 1017. The budget session, which is due to t;rart on January 1 i. 101$. will be one full of many perplexing problems and will claim the attention of Uie taxpayers more tiian for many years. My opinion is that necessities only should be voted for at tliiB meeting for if It be otherwise an Increased tax levy to a considerable extent would he the result, which would be a burden on the majority of the taxpayers during these trying times. ESTIMATED REVENUE FOR 1918. General taxes Estimated on the sn me valuation as 1017 and at the same tax rate (t;i. mills). Based, upon Information received from tho county assessor $1,1S7,000.00 Licenses Total receked for 1917 $256,000.00 JVdnei Liquor Ios-r $124,00.00 Merchants licenses 3ti.00O.0O lfiO.OOO.OO $ 06,000.00 Add estimated increase in miscellaneous licenses 14,000.00 110,000.00 WATER REVENUE, Estimated at an Increase of $10,000, provided a satisfactory change is made In the method of assessing and- collecting 320,000.00 DEPARTMENTAL FEES. This revenuo represents fees, fines and various fixed charges required re-quired by ordinance. Estimate same as 1917 receipts 130,000.00 TAX PURCHASE REDEMPTIONS. Redemptions in favor of the city on advances made by the'edty on purchase of delinquent special taxes 8,000.00 Total estimated revenue for 1918 $1,755,000.00 Out of this $ l,755.00u.OO we must meet the 101S requirements, as there will be practically no surplus to bring forward at the end of this year. From our revenue of .U. 750,000 we must first deduct the liabilities, or obligations contracted for in 1937 and prior, and also all contingent liabilities that wo are reasonably sure of that will be paid in 19 IS. They are as follows: Balance necessary to complete the outlet sewer $ 40,000.00 Tjoan made to the waterworks fund In 19 16 from the water bond fund, which must be returned in 191 S 2S.2OO.0O Cltv board of education's share of the expense of assessing and collecting col-lecting general taxes for the years 1915, 1916, 1917, 191S S5.0O0.00 Estimated premium on workmen's compensation insurance or the cost of direct liability lo.000.00 Amlual payment on Spiers land purchase 5,000.00 Provision for lawsuits that are pending In the supreme court that have been decided adversely to the city in the lower courts 20,000.00 Amount necessary to complete water bond projects 20,000.00 City's portion on lighting districts Nos. i and 2 4,S00.00 Interest adjustment In favor of special funds 13,000.00 Total preferred liabilities $181,000.00