Bill To Bond Ann Arbor For $40,000 Is Passed

BILL TO BOND ANN ARBOR FOR $40,000 IS PASSED

Bill Stating Deficit of City Funds to be $40,000 Takes Mayor's Figures

The Mayor's Figures and the Figures in Treasurer's Reports Do Not Agree – Here Are the Figures

The measure to bond Ann Arbor for $40,000 was railroaded through both houses of the legislature last week and is now up to the governor for signature. The title of the bill is "An [illegible] to authorize the city of Ann Arbor to issue bonds in the sum of $40,00 to pay the indebtedness of said city and liquidate a deficit and overdraft to that amount."

Now all that remains to make the bill a law is the signature of the governor. If any determined kick is put up the governor is not apt to sign it. He had some experience during his first term signing bills which had not had the proper consideration. All that anyone knows of the state of the city finances, so far as the deficit caused by the flood and the storm sewers has seen in statements in round numbers by the mayor. The mayor is not an expert with figures, so not everybody takes his round number figures as accurate. If it be true, however, that the overdraft is $40,000, then it is true also that the present administration has not succeeded, in spite of its big decrease in city taxation, in lowering the overdraft, even when the flood damages are taken into account.

But the act does not in its title contain exact information. The city finances are in this condition. On January 1, 1903, Treasurer Newark reported cash on hand $41,213.05. Of this amount $48,727.44 belonged to state, county and school taxes, leaving an overdraft in the city funds of $7,514.39, but there are $6,749.53 city taxes to be collected this month, which would leave the actual overdraft $764.86. If we add to this the amount of bills allowed by the council this month $7,610.15, we have an actual overdraft in the city funds on February 1, 1903, when the fiscal year closes, of $8,375.01.

There are two sets of funds not included in these figures, as the treasurer keeps separate accounts of them. The street paving funds on January 1 had a cash balance on hand of $27, 97.81 and the sewer funds were overdrawn $15,790.14. To sum up, the actual cash state of the city finances Jan. 1, 1903, was as follows:

On hand–

Paving funds . . . .$27,497 81

Overdrawn–

Sewer funds . . . .$15,790 14

City funds . . . . . 7,514 39––   23,304 53

Actual cash balance . . . . . . .$4,193 28

As before stated $6,749.53 is to be collected and $7,610.15 paid out to bring the funds down to the end of the fiscal year.

Of course the balance in the paving funds cannot be diverted for other uses, so that what it it actually necessary to provide for under the charter is:

City funds . . . . . . . . . . . $8,375 01

Sewer funds . . . . . . . . . .15,790 14

Total . . . . . . . . . . . . . . . . .$24,165 15

The mayor would raise $40,000 with his bill and give the city in the neighborhood of $16,000 to leave as a balance in the various funds. On this the city would pay a higher interest than it will receive.

We shall take occasion later to show how little in spite of the increased city taxation of the past two years, with the heavy appropriations to the bridge, culvert and crosswalk funds, made with the express purpose of wiping out the overdrafts, the deficit has been reduced.