The interest centers quite naturally on the ex penditure side of the budget more than upon the re ceipt or income side. Comparison between expenses of preceding years, the appropriation for the coming year and the expenses of the current year up to the date of the report, together with the estimated ex penses for the rest of the current year, and the de partmental estimates for the complete year should be arranged side by side. Any differences in these amounts should be- noted and changes from year to year should be watched. For example, an increase in personal services, supplies and the like, or a decrease in services other than personal, such as contract serv ices, would indicate that more of the city's work was being done by its own employes and less by outside contracts.
A decrease in rentals or an increase in property purchases might indicate expenditures for permanent property to replace leased property. A marked fall ing off in the maintenance expenses might indicate that the property and equipment were not being properly kept up. Increased expenditure for prop erty acquisition should result in an increased main tenance charge in succeeding years. If this does not result, then the property is not being maintained properly. Increases in operating expenses may be the result of the expansion of existing functions, the taking on of new functions not previously performed, or the result of inefficiency of operation.
The relative use of borrowed moneys for current expenses and for permanent improvements should be clearly indicated in the comparison. These are but a few of the many factors for which one examining a municipal budget must watch. They afford, how ever, some indication of the manner in which such statements should be read.
19. Extending the scope of the budget.—Where the city is operating a municipal gas plant, a street railroad, or other revenue-producing property, sepa rate and detailed operating statements, as well as balance sheets for such properties, should be pre pared. The time is undoubtedly coming when the taxpayers will receive reports of municipal operations disclosing (1) the financial condition of the munici pality, showing its permanent assets and improve ments, and the funded debt of the municipality, (2) its available assets in liquid form and its outstanding obligations and commitments—both of these state ments to be prepared in comparative form, (3) the separation of income and capital receipts and pay ments.
When these reforms have been carried out, the pub lic officers of a municipality will be able to justify their administration. The taxpayers and the admin istrative officers of the governmental body will also have information upon which may be determined, first, the character and the cost of the services ren dered; second, the economy or waste in the various departments ; third, the efficiency or inefficiency of public officials and employes; fourth, the financial condition of the municipality at any stated time; fifth, a just apportionment and distribution of the tax levy among the various departments each of which com pete for their respective allotments.
The taxpayer will know whether or not he is re ceiving his money's worth for the taxes he pays; he will know that his public officials are honest. He will know that proper provision is being made for in terest and amortization of the city debt, and he will be able to determine in his own mind whether or not the administration is "making good."