USA > Massachusetts > Middlesex County > Somerville > Report of the city of Somerville 1933 > Part 1
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GIVES
L
LE
E
1872
A CITY STRENGTH
AL
ED 184
LIS
2. ESTAR
IDINOW
CITY OF SOMERVILLE
MASSACHUSETTS
ANNUAL REPORTS 1933
GIVES
M
SOMERVILLE
TI
FREED
IPAL
FOUNDED 1842
A CITY 1872 ONAL STRENGTH
MUNICI 1842 ESTABLISHED A
SOMERVILLE PRINTING CO., INC.
1934
HON. JAMES E. HAGAN Mayor of Somerville
INAUGURAL ADDRESS of HON. JAMES E. HAGAN MAYOR OF SOMERVILLE, MASSACHUSETTS
Monday, January 1, 1934
-
Gentlemen of the Board of Aldermen :
Somerville begins today its sixty-second year as a city, and in accordance with law and custom we are assembled to inaugurate the government under which our affairs will be administered during the next two years. For the first time in our history, we are operating under the non-partisan system, having abandoned the plan of party government which has prevailed from the time of our incorporation as a city.
This large gathering of men and women is indicative of their awakened interest in the conduct of the city government. An enlightened and alert citizenship is a salutary check on the actions of public officials. Recognizing that many of our cit- izens would be unable to attend these exercises, I made ar- rangements some weeks ago to have the inaugural program broadcast. This provides an opportunity for all our people to become acquainted with the problems which confront this new administration. To all those present and to those listening in on the radio, especially my mother, whose condition, while im- proved, does not yet permit her to leave her home, I extend my sincere greetings, and wish for each of you a New Year of happiness and prosperity. In obedience to my advocacy of strict economy which will occupy a large part of this address, the radio broadcast is sent to the people at no cost to the city.
For many years our American scheme of government has been the subject of criticism, both by students of government and by citizens themselves. It is my belief that the real faults of our system can be traced to the failure of public servants
4
ANNUAL REPORTS
to realize the full significance of public duty. It is easy to re- peat the ancient thought that public service is a public trust. It is not so easy to conduct ourselves in complete accord with this principle. The broad appreciation of our obligations as public servants, especially in times such as these, will temper our enthusiasm for improvident spending.
Municipal expenditures generally have been unduly increas- ing during recent years, while municipal revenues have been substantially and steadily decreasing. If the property of the taxpayers is to be saved from confiscation, those charged with the administration of this or any other city must guard care- fully against the situation getting out of hand.
Our own city offers no exception to this general tendency. The years 1930 to 1933 inclusive may be taken as an illustra- tion. In this period, despite diminished revenues, the bonded indebtedness of the city has grown from $2,648,000 to $4,114,- 000, an increase of approximately a million and a half dollars, or over 50 per cent. The amount of temporary loans outstand- ing has expanded during the same period from $800,000 to $1,270,000, an increase of $470,000, or nearly 60 per cent. My purpose in citing these increases is not to criticise the admin- istration which incurred these debts, but rather to point out how easy it is to spend when payment is postponed. It goes without saying that it is difficult and expensive for subsequent administrations to repay this borrowed money, and that inter- est charges on these huge loans is a heavy drain on our re- sources.
It is, of course, sound policy to borrow for proper and necessary improvements, but prudence dictates that we should not unduly mortgage the future of the city. Our administra- tion must pay the installments of principal and interest on these borrowed amounts as they become due, and it is estimated that this year we are obligated to pay nearly $600,000 on these items alone.
Increased spending in the face of diminishing revenues brought us a 1932 tax rate of $40.10, the largest in our history. It is only fair to concede that the economic plague of the de- pression was a factor in determining the size of this tax rate. When the 1933 rate showed a reduction of $7.50 over the $40.10 rate of the year previous, some of our citizens believed that our financial house had been put in order. I wish to point out, however, that the 1933 tax rate was not reduced through savings in municipal expenditures, but through the contribu- tions of our city employees and through borrowing to pay cur-
5
MAYOR'S INAUGURAL
rent obligations. It was reduced by mortgaging the future revenue of our city. The city employees contributed approx- imately $385,000. We borrowed from the State on the security of tax titles $447,000, which must be repaid plus interest in a short term of years. We borrowed from the State for Welfare purposes $325,000, which must be repaid plus interest in a short term of years. We borrowed from the Federal Govern- ment $101,500, which must be repaid plus interest in a short term of years. The total of these contributions and borrow- ings exceeds one and a quarter million dollars. In the usual conduct of governmental affairs, the expenditures which neces- sitated these contributions and loans would have been paid out of current revenue. If they had been so paid, the 1933 tax rate would have exceeded the $40.10 rate of 1932. In other words, the reduction in the tax rate was accomplished, not by effecting real savings, but by borrowing to pay current obliga- tions. The result is that future administrations must assume the burden of paying a large part of the 1933 current obliga- tions, plus the huge interest charges which these loans entail. We, in turn, must pay such part of this transferred burden as falls due during the next two years.
It is clear, then, that if there is to be real relief for the taxpayers, our expenditures must be decreased. The expend- itures of a city are divided into two classes, those which are uncontrollable and those which are controllable. By uncon- trollable expenses, I mean such items as the maturing portion of the funded debt, temporary loans outstanding, interest charges, wages except as affected by contributions, unpaid bills of previous administrations and essential departmental out- lays, which no economy of ours can reduce.
The indications are that other items of expense over which we have no control will be as large or larger than last year. You no doubt know that the share which we must pay of the State Tax, County Tax, Boston Elevated deficit and other charges of similar character have been increasing during re- cent years, while the amount which we receive from the State as our share of motor vehicle excises, income, corporation, and bank taxes, has been steadily decreasing. As recently as five years ago in balancing of these accounts between City and State, Somerville received from the State approximately $230,- 000. Last year, on the other hand, Somerville was obliged to pay the State approximately $439,000. This means that in the course of five years our net outlay on these items alone has increased approximately $669,000.
6
ANNUAL REPORTS
A further item of expense over which we have no influence is payment of a large amount of unpaid current bills incurred by the outgoing administration. As a matter of bookkeeping, the bills themselves appear to have been paid, but they were paid by means of a temporary loan recently obtained at a high rate of interest. This increased the amount of temporary loans outstanding, so that in affect we are faced with the problem of discharging the unwelcome heritage of these unpaid bills.
An additional handicap which we must face is the absence of the usual surplus of cash in the treasury. Ordinarily, an incoming Mayor finds enough cash in the treasury to take care of the necessary outlays of the city during the first few weeks of the new administration. This is illustrated by the situation which prevailed at the beginning of the year 1930, when there was a cash surplus of $181,000 in the treasury. Today, as we take office we find a depleted treasury.
Our total annual outlay is approximately five million dollars. It is estimated that uncontrollable expenditures rep- resent eighty per cent of this amount, while controllable ex- penditures represent only twenty per cent. Our controllable expenditures, then, are about one million dollars. Inasmuch as our uncontrollable expenditures are fixed obligations, the amounts of which we cannot change, it is obvious that the only field for the exercise of prudent economy by this administra- tion lies in our controllable expenditures. After a month of intensive study of the budget, I have been able to reduce our controllable expenditures approximately a quarter of a mil- lion dollars. In doing this I have especially provided that no essential function of our city government is neglected. This saving will be made possible by discharging unnecessary city employees, by abolishing duplicate positions, and by curtail- ing and consolidating the activities of certain departments.
In the matter of curtailment and consolidation of depart- ments, I recommend that the Recreation Commission be con- solidated with the Physical Education and Athletic Division of the School System, and that a sadly needed reorganization of these departments be made. The year round operation of the Recreation Commission should be greatly curtailed, but the summer playground activities should be continued as before. The administration of the Welfare Department should be re- organized in such manner as to promote equally efficient ser- vice at less cost to the taxpayers. Similar economies will be effected in practically every city department. After acquiring the thorough and detailed knowledge of the various depart-
7
MAYOR'S INAUGURAL
ments, which will be available to us after we are in office, I am hopeful that further savings will be accomplished.
In effecting this large saving in our controllable expend- itures, I have realized that economy is never the popular course for a Mayor to pursue. It is, however, at this time the only course which will restore our economic security. I do not wish to give you the impression that our affairs are in a hopeless condition, but I do want you to know that it is time we started to put our financial house in order.
My study of our finances leaves me no choice but to call upon the city employees without a single exception to continue the 15 per cent contribution which they have been making. I am fully aware of the sacrifice which this entails. I know that the national program of raising commodity prices necessarily causes a reduction in the purchasing value of wages. However, there is absolutely no way that we can avoid serious and per- haps irreparable harm to our financial structure without con- tinuing this 15 per cent contribution.
In the past when conditions warranted I have been in the forefront of those who advocated higher wages for govern- ment employees. In the Legislature, I voted against the tem- porary reduction of wages, because I believed the financial condition of the State did not require sacrifices from its em- ployees. In the future as soon as times indicate its desirabil- ity, I shall again be found among the first to advocate a dis- continuance of the 15 per cent contribution. Needless to say, I and every appointed official will make this contribution along with our fellow employees. In the past, the contribu- tions of our city employees was of invaluable aid to the city. If they are assured that this administration will not squander their contributions, I know that they will aid the city again. I now give them this assurance. The patriotic indulgence and earnest co-operation of every city employee in this matter, as well as in the more comprehensive program of economy, will do much to hasten our restoration to financial soundness, and to secure them against payless paydays.
The executives who owe their appointments to me will be advised that further contributions in addition to the 15 per cent will be expected of them in such amounts and for such period of time as necessity and fairness require. I, personally, am making a contribution to the city of five hundred dollars of my salary as Mayor, in addition to the 15 per cent contribu- tion which all my fellow city employees will make.
8
ANNUAL REPORTS
Automobile allowances to heads of departments have been abolished where possible, and substantially reduced in all other cases.
City employees who, because of their age and long years of service, are eligible for retirement on part pay will be asked to accept their pensions in all cases where the acceptance of a pension will promote economy and efficiency, without doing violence to humanitarian considerations. The places of these retiring employees will not be filled except where absolute necessity demands it.
There is one element of municipal expense which gives some promise of being smaller than last year. I refer to Public Welfare and Soldiers' Relief outlays. We all hope to see some return of business activity this year. If our hopes are justified in this regard, increasing employment will reduce the number of those receiving aid from the city. There is some prospect that the expenses of these two departments may be reduced through the operation of two Federal Agencies, the Civil Works Administration and the Public Works Administration. If the Civil Works Administration is continued in operation, it is the definite pledge of this administration that the money received will be spent for wages, and that there will be no rep- etition of the recent extravagant purchase of tools and supplies which caused such unfavorable comment throughout the city. Further, the men employed will be chosen solely on merit, rather than on considerations of political preference. .
There are also possibilities of reducing the expenses of these two departments through the operation of the Public Works Administration. However, we should go slowly in un- dertaking building projects merely for the purpose of reduc- ing our Welfare and Soldiers' Relief Lists. The money award- ed under the Public Works Administration is a gift only to the extent of thirty per cent. The balance of seventy per cent is loaned to us and must be repaid with interest over a course of years. There are some buildings which our city needs, and if we could erect them and save thirty per cent of their cost, it might be wise economy to accept a Public Works Administra- tion grant. It goes without saying that any projects under- taken should be such as are of permanent value to the com- munity and will afford the greatest amount of employment to our citizens.
As you know, the Mayor is, by virtue of his office, a mem- ber of the School Committee. My vote in the deliberations of the School Committee will be cast for thorough competence in
9
MAYOR'S INAUGURAL
our teaching staff. I realize that there are no geographical limitations to competence, yet I feel that Somerville residents should be engaged as teachers in all cases where said residents are properly qualified. The expenditures of the School Depart- ment, which represent such a large portion of our municipal costs, are not subject to the authority of the Mayor. It follows, therefore, that if our comprehensive program of economy is to be effective, the School Committee must practice the same wise economy which the Mayor recommends to the Board of Alder- men. I ask and expect of the School Committee the same com- plete co-operation that I ask and expect of the Board of Alder- men.
An earnest effort will be made to obtain improvement in our transportation facilities. The service to and from Boston should be increased, and I believe this could be done without imposing unreasonable hardship on the Boston Elevated Rail- way. We should endeavor to established a cross town bus ser- vice. I believe that such cross town facilities would knit the various sections of our city closer together, and bring about an increase of trading in the several shopping centers.
If the program of economy which I have recommended is given the full support of the Board of Aldermen and the School Committee, I am confident that it will not only afford some measure of relief to our taxpayers, but will make our city an attractive place for the location of new industries. No city in the Metropolitan area has such inviting industrial possibil- ities as are afforded in the eastern section of our city. Our avenues of transportation by rail, water and highway make us a most advantageously located city for economical distribu- tion. I firmly believe that with the revival of business activ- ity which this New Year promises, Greater Boston will witness large commercial development. The one handicap which Som- erville faces in obtaining a proper share of these new enter- prises is its financial condition. If our finances are put in. order, if our tax rate is a reasonable one, and if our city is ยท properly administered, large business expansion can be con- fidently expected. New industries will afford new sources of revenue to the city, thus reducing the general tax burden, as well as furnishing employment to large numbers of our res- idents.
To the citizens at large, I address this brief word. Large amounts of your taxes for 1932 and 1933 remain unpaid. You can assist your city by doing your utmost to make payments on these taxes. Every dollar which is paid can be applied
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ANNUAL REPORTS
toward the discharge of the bonded indebtedness, temporary loans and interest charges, all of which are such a drain on our resources. This administration wants you to have con- fidence in it, and the administration pledges itself to keep faith with you. The City Treasurer's office will be open every day and evening this week until ten o'clock to give you a conven- ient opportunity to DO YOUR PART in restoring our finan- cial security.
I expect department heads and those in executive posi- tions to be helpful and courteous in their contacts with the citizens, and I shall insist that all employees, whether in high place or low, give the city full value for the wages they re- ceive.
The people are now somewhat acquainted with the mag- nitude of our task. The solution of our problems is impossi- ble without the unselfish and intelligent support of all elected officials, city employees, civic organizations and the citizens themselves. To the end that we as public servants may per- form our full duty to the citizens, I ask the complete co-opera- tion of the Board of Aldermen and the School Committee, and to them I unreservedly pledge mine.
11
CITY AUDITOR
REPORT OF THE CITY AUDITOR
Office of the City Auditor,
January 31, 1934
To the Honorable, the Mayor, and the Board of Aldermen of the City of Somerville,
Gentlemen :
In accordance with the requirements of Chapter 7, Section 3 of the Revised Ordinances of 1929, I herewith submit a re- port of the expenditures and receipts during the year 1933, showing in detail the appropriations and expenditures and the receipts from each source of income. Also a statement of the funded debt and temporary loans, table relative to maturities and interest, a balance sheet showing the assets and liabilities at the close of the fiscal year and a statement of the treasurer's cash.
Respectfully submitted,
FRANCIS J. DALEY,
City Auditor.
Approved,
JAMES E. HAGAN, Mayor
12
ANNUAL REPORTS
I hereby Certify that I have verified the Treasurer's cash as of December 31, 1933, by actual count, and have verified by reconciliation of the bank accounts the amounts on deposit in the banks as of the same date.
The total cash balance December 31, 1933, was $288,796.58, as follows :
Somerville National Bank
$34,530.04
First National Bank
43,969.30
First National Bank (Atlantic) 321.64
Merchants' National Bank
58,596.64
Bank of the Manhattan Co.
8,393.75
State Street Trust
822.95
National Shawmut Bank
3,549.71
Somerville Trust Co., Benefits
1,555.56
Somerville Trust Co., Teachers
1,683.41
Highland Trust Co.
106,167.48
Charlestown Trust Company
22,500.00
Cash and checks in office
6,706.10
$288,796.58
I further Certify that I have examined the Trust Fund Securities in the hands of the City Treasurer and find them to be correct, as follows :
S. Newton Cutler, School
$5,322.22
Sarah Winslow Fox, School
401.38
Caroline G. Baker, School
300.00
J. Frank Wellington, School
2,013.33
Isaac Pitman Art, Library
4,665.75
Isaac Pitman Poetry, Library
1,166.45
Wilder Children's Library
100.00
Martha R. Hunt, Book, Library
14,105.25
Martha R. Hunt, Art, Library
1,299.77
S. Newton Cutler, Library
1,064.45
Sarah Lorane Graves, Library
400.00
Buffum Memorial, Library
1,000.00
Thomas J. Buffum, Library
2,020.00
Eunice M. Gilmore, Library
2,000.00
J. Frank Wellington, Library
4,026.67
Edward C. Booth, Library
3,000.00
Olive C. Cummings, Welfare
1,751.45
Mary A. Haley, Recreation
3,645.76
$48,282.48
And the following Invested Funds :
Municipal Buildings Insurance
$20,992.71
Retirement System (cash and securities)
92,847.82
$162,123.01
I Further Certify that I have examined the cash and ac- counts of the City Clerk. The cash on hand December 31, 1933, has been verified by actual count and the bank balance rec- onciled.
13
CITY AUDITOR
January 31, 1934.
Middlesex, ss.
Then personally appeared the above named FRANCIS J. DALEY and made oath that the foregoing statement is correct and true to the best of his knowledge and belief.
CHRISTOPHER J. MULDOON,
Notary Public.
BALANCE SHEET DECEMBER 31, 1933
Cash :
Assets
Liabilities
In Offices and Banks $265,332.66
$265,332.66
Accounts Receivable :
Taxes, 1929
$989.80
Taxes, 1930
7,408.40
Taxes, 1931
14,266.76
Taxes, 1932
64,659.72
Taxes, 1933
1,652.578.53
Accounts Payable
62,454.16
Highway Deposits
23.00
City Clerk's Deposits
181.00
Water Deposits
682.27
Motor Vehicle Excise:
1929
$10,236.36
1930
12,588.53
1931
14,023.16
1932
19,725.87
1933
32,166.95
Civil Works Program Loan Un- issued
26,000.00
88,740.87
Comm. of Mass .- Old Age As- sistance
1.00
Assessments :
Street Sprinkling, 1932
$192.48
Revenue Reserved until Collected :
Departmental
$339,315.23
Street Sprinkling, 1933
20,760.25
Sidewalks-Taxes, 1932
6.60
Highways-Taxes, 1932
15.74
Special Assessments
23,576.17
Sewers-Taxes, 1933
16.64
Tax Titles 485,478.59
Sidewalks-Taxes, 1933
410.14
Motor Vehicle Excise
88,740.87
Highways-Taxes, 1933 .. 2,174.32
Committed Interest 701.16
1,010,288.15
ANNUAL REPORTS
23,576.17
Old Age Assistance Tax, 1931 ... Old Age Assistance Tax, 1932 ...
$510.00 993.00
Temporary Loans
1,515,000.00
Tailings
149.33
County of Middlesex - Dog
Licenses
12.60
Old Age Assistance Tax, 1933 ..
1,739,903.21 13,010.00
Unexpended Balances :
5,937.01
Income of Trust Funds Appropriations
13,336.79
Water
72,476.13
14
BALANCE SHEET (Continued)
Departmental Bills Receivable:
Health Department
$15,343.44
17,345.13
Contagious Hospital
13,966.80
Sale of Land
243.51
Inspection Milk and Vinegar.
302.75
Sanitary Department
614.88
Sale of Buildings
1,575.00
Maintenance Sanitary Building
11.40
Highway Maintenance
101.42
Overlay, Reserved for Abate-
Welfare Miscellaneous
272,388.36
ment of Taxes:
Old Age Assistance
5,708.01
Levy of 1929
989.80
Welfare-City Home
10,785.27
7,408.40
Soldiers' Relief
20.00
Levy of 1931
339.06
School Contingent
2,772.43
Levy of 1933
54,534.28
State Aid
12,096.25
Military Aid
4,864.22
Soldiers' Burials
340.00
Water Department Accounts.
72,476.13
$411,791.36
Excess and Deficiency
203,309.07
Committed Interest:
Sewer Assessments
$3.0.0
Highway Assessments
638.66
Sidewalk Assessments
59.50
701.16
Tax Titles
485.478.59
Overlay 1932
1,654.07
Loans Authorized
26,000.00
$3,056,188.09
$3,056,188.09
15
CITY AUDITOR
Reserve Fund, Surplus from Overlays
6,021.60
Reserved for Deposits in Closed Banks
128,853.93
$339,315.23
Tax Title Reserve for Emergency Loan
Levy of 1930
BALANCE SHEET (Continued) NON -- REVENUE ACCOUNTS
Cash in Offices and Banks ..
$23,650.37 Appropriations Accounts Payable
$23,047.51 602.86
$23,650.37
$23,650.37
DEFERRED ASSESSMENTS
Deferred Revenue:
Apportioned Sewer Assessments
$33.30
Deferred Special Assessments ..
$15,468.09
Apportioned Sidewalk Assessments
1,786.85
Apportioned Highway Assessments
13,647.94
$15,468.09
$15,468.09
NET FUNDED OR FIXED DEBT
Net Bonded Debt
$4,117,611.85
Loans Within Statutory Debt
Limit:
City Hall Addition
$70,000.00
Additional Fire Equipment .....
62,000.00
Sewer
51,000.00
Bridge
16,000.00
Highway
439,000.00
Public Building
30,000.00
Schoolhouse
402,000.00
High School
865,000.00
Junior High School
773,000.00
Garage
38,000.00
16
ANNUAL REPORTS
$2,746,000.00
BALANCE SHEET (Continued)
Loans Outside Statutory Debt Limit :
Northern Traffic Artery
$300,000.00
Elementary School
86,000.00
Police Station
210,000.00
Tax Titles 405,611.85
Welfare
325,000.00
Municipal Relief (C. W. A.)
45,000.00
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