| Show S. S L. L Finance Department Evolves System by Which City Can Carry Its Loans Plan Contemplates Borrowing Funds as Needed Needed Needed Need Need- ed From Local Banks Instead of From Eastern Finance Agencies Agencies' When It is is' is realized that two- two thirds of the city's gity's total revenues Los for a year ear are not received until the middle or latter part pert of December of that year ear and the city's opera opera- opera opera-I Ions have to be financed for eleven or eleven and a half months on anticipated an revenues s some me idea may be gained of the important task that devolves upon the department department depart depart- ment mont of finance and public and Commissioner Herman H. H Green head of this department W When ien the present year closes the finance department will have hancHell handled han ban tiled cHell approximately ly in revenues of which were not received until this month and yet the figures of the auditor Indicate in indicate In- In dicato that the year will be closed with a comfortable balance In Jn the treasury The exact amount of this of course cannot be determined Until un until until un- un til December payrolls and bills are re paid Allowing for the months month's payrolls payrolls payrolls pay pay- rolls the city entered December with an surplus of 01 The majority of citizens pr wonder why it is that the city al always always always al- al ways has to borrow money lt It t the beginning of each year or shortly thereafter Many seem to get the Idea dea that it is the fault of the city officials the administration or that It t is poor or extravagant financing Such Is not the cas case SITUATION ION EXPLAINED If you had to work a year be before before before be- be fore receiving any wages it would be for you Iou to borrow money to live on until the years year's wages were received This is ex exactly exactly ex- ex the situation with the cl city Y It t is compelled to operate practical- practical 13 1 y a year before it receives its taxes to c cliver cover ver the years year's expenses The only revenues which it receives durIng during dur- dur Ing ng the c course urse of the year ear are the departmental and miscellaneous re receipts receipts rl- rl totaling approximately 1 Thus i it becomes necessary for or the city to borrow bonow approximately approximate approximate- ly y each year to meet Its current bills until the taxes for the year rear are paid in December It is true rue that under this condition the city Is compelled to run principally on borrowed money about eleven months of each twelve and this will continue to be the case unless some plan is evolved to bring in taxes for forthe forthe i the he current year at the beginning Instead of the end encI of ot the year Early Earl EarlIn in the present year the city was compelled to borrow on tax anticipation notes and In November had to borrow additional molting making a total of 2100 borrowed this year The tax revenues received this month will WIl practically all an be used to pa pay off this loan and next year the city must resort to borrowing again to cover current expenses until next years year's taxes are received NEW BORROWING PLAN Heretofore the city has always advertised for bids and borrowed its mone money in the eastern markets payIng payIng paying pay- pay Ing large sums to cover the cost of negotiating the loans This year the finance department has worked out and submitted to the city commission commission commis commis- sion a a. new plan for financing the Ii r r city locally which it Is figured would save the city from to a y year ear ar in the cost of or these loans and keep a large portion por por- lion tion of the In interest erest at home be besides besides be- be sides gaining yal valuable able advertising b by letting the world know that the city Is able to finance Itself at home The new plan consists of borrowing the from local banks under an agreement agreement agreement agree agree- ment by which the banks wIll will let the city have stated sums monthly as as' needed at 5 per cent Interest thus reducing the total amount of interest charge and eliminating the costs attached to negotiating eastern eastern east east- ern era loans The cit city commission has decided to call for bids locally and andIn andin andin in the east on both the old and the new plan to determine will afford the city the better financial deal ELEMENT OF UNCERTAINTY There Is alwa always s an element of uncertainty as 10 to the city's revenues for any year both in the matter matteo of taxes and receipts No one knows knovs what the latter will amount to until the end of the year and they must be estimated from time to time Taxes are almost as uncertain for forthe forthe forthe the city must figure its budget forthe for forthe forthe the year months before the assessed valuation of property for that hat year is fixed by the county assessor and of course before beCore the tax rate is orca or ca cars can be fixed Thus the city must figure its needs then figure Its KB prospective revenues on a basis of the previous years year's assessed valuation valuation tion and tax rate If the city's needs increase and the valuation increases in- in creases proportionately then the commission is able to provide fOr Its growing needs without putting I Ithe the public on its ear by raising the tax rate But if the valuation does not increase or even decreases as asit asit asit it has at times then the only al alternative alternative al- al the city has to meet its demands Is ls to raise the tax rate and suffer the consequences So the primrose path of the finance depa department de de- de- de pa is not entirely lined with roses OTHER ACTIVITIES But handling the city's finances Is not the only task imposed upon the finance department for this department department de do- 1 Includes besides the I treasurer and auditor the law department de tie- deI I the city courts both criminal and civil the Warm Springs the city's great bathing I resort the city cemetery and tho the I license bureau All of these departments departments departments depart depart- I ments are closing a successful year as shown by their reports The Warm Springs has been de developed developed developed de- de I into a re revenue nue producing i institution and It gives promise of I being a large revenue producer This year ear it will close the period with a n margin of ot profit of the revenue and expense expense ex ex- pense figures up to date Indicate The springs bathhouse is declared by visitors from Other sections of the country to be one of the finest and best equipped municipal bath bathhouses bathhouses bathhouses houses in the country Its cleanliness cleanliness cleanliness ness and are points J f A. A that draw favorable comment from every everyone one CEMETERY IMPROVEMENTS During the year about 2000 additional additional addi addi- burial lots have been made available through a little grading work done at i a cost ost of T These ese lots will sell at 50 each The d de department d- d has has has' also put In rods of ot curb and guttering in ill the cemetery cemetery cerne- cerne tery and nd has graded two new streets It is Interesting to know that there are persons buried burled In the city cemetery LICENSE BUREAU The license bureau of the finance department is one of the large revenue revenue reve reve- nue flue producers for the city This de department department has collected in the present present pres pros ent year ear approximately and anti the dog tax collector has collected about The law department is a money saver for Salt Lake City This Is shown by its record for fOI 1925 DurIn During During Dur Dur- In ing the year ear suits were instituted against the city for damages totaling totaling totalling total total- ing ling but out of this amount i judgment has been rendered against the city for only and all of the cases have been adjudicated When not occupied winning damage dam darn age suits the law department is busy handling mis miscellaneous suits drafting ordinances rendering opinions on law points drawing contracts and other wise caring fOrthe for forthe forthe the legal affairs of the corpora corporation tion CITY COURTS The ar which are in the recorders recorder's I department are are re also i lev nue producers During the present pres pres- ent eat year the civil division has handled handled han han- tiled cases for which it has collected fees totaling and end the tile criminal division has handled handled han han- died 1148 cases on which the fines and fees totaled A small smaIl portion of or the criminal fees go to the county where the cases in involved involved In- In come come under the state law CITY'S BONDED DEBT The city closes the year year with a aI bonded debt of as against I a bonded debt limit of This is said to be a small debt as compared with other cities of like size eize and importance The total water bond bend debt of the city is 2 which is also exceptionally low low- Water bonds to the amount of were redeemed during the year ear The sewer bond debt is and In sewer bonds were retired during the year I r J Ii UI t. Lr 5 L |
