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Members ofthe Common Council <br />Committee ofthe Whole <br />Ways and Meanaa „Committee - - -, -- <br />City of South Benxi, Indiana - <br />Gentlemen: In accordance with several of my former messages and recent conversations with Mr. <br />Goetz and Mr. Hull of the gays and Means Committee, I herewith present to you an outline of <br />the changes it is contemplated making in the salaries of City employes for the year 1935, with <br />other pertinent information regarding the City and its finances. <br />The interdependence of the legislative end executive departments of the City of South Bend <br />has been clearly shown by our joint action on several occasions. The question of fixing sala�ri <br />during the last few years has been one in which both branches of government have assumed their <br />obligations end duties to the City unflinchingly. Those of us who are regponsible for the <br />reduction of salaries know its difficulties and I am sure that you will agree that neither your <br />body nor the executive branch would have reduced salaries except to assure a continuance of <br />the operations of this City. When we were faced with municipal bankruptcy unless our <br />expenditures were brought in keeping with our income, both theCommon Council andAdministration <br />met the matter squarely and brought expenditures in keeping with the expected income. <br />The fact that South Bend is one of the twenty -fiine cities above 100,000 population in the <br />United States that lived within its income, justifies our joint action to the citizens and <br />employes of this City. <br />A survey of local conditions shows that there ere approximately 14000 wage earners unemployed; <br />2459 families on poor relief; there has been a further reduction of $6,000.00 in the assessed <br />valuation of South. Bend property showing a total reduction, since 1929, from $200,000,000. to <br />$130,000,000. On the bright side - deposits in the banks are on the increase and officilas of-- <br />the American Trust and Citizens Trust banks are confident they will reopen; current tax del- <br />inquencies have been reduced from 25% to 17%; end there is a confident feeling that the <br />Studebaker Corporation will be reorganized -before the end ofthe year. <br />The first three items, apemployment, poor relief andthe reduction in property valuations show <br />•_ <br />continued lowered ability to pay taxes st their former high rates. However, the last three, <br />showing improvement in our industrial and financial situation, indicate a possible change in the <br />first three black items. <br />The promises made by both the Council and the Administration tt the City employes to share any <br />savings in the operation of the municipal government by salary increased must be fulfilled. <br />City employes should. feel confident that their wages and salaries will be in keeping with the <br />amounts paid their fellow citizens for similar work in private enterprises. They should have the <br />further assurance thatthis arrangement shall be ma.intsined- without needless quibbling. Once <br />this confidence xiaxiixtexm asixkaimRdxxiiiaxxixmRsdixxax is established they will be more Willi <br />to accept reductions, if lowered income of the community makes such action necessary. <br />tax will permit <br />The savings in the 1935 budget, plus expected incor;e from other than sources <br />five <br />• <br />an increase in salaries to all City employes of 10 per cent. There are, however, <br />in keeping with the balance of the City employes. <br />pesitions where the salaries paid are not <br />These a mechanic in the Police Department; signal men at the alarm station, bailiff of the <br />afire: <br />City Court; one man in the Building Departtment end one men in the Engineering Department. <br />These will be readjusted to conform before applying the blanket increase. <br />The total aamooLnt involved is $44,169.30. <br />included in this increase. Their salaries, <br />The executive officres of the City are not <br />having been limited by the State tegislaature, are already set by the Common Council. <br />(Continued on page 251) <br />