The City That Couldn't Pay Its Bills: Seattle’s Fiscal Crisis and the Fight for Expansion

"I do not believe the people of Seattle fully understand or appreciate the difficulties which embarrass the Council in its attempts to promote the best interests of the city," said Councilman D. Dane yesterday. "And I think an explanation of its position, especially at this time when the Council has been criticized by the press for its lack of push and enterprise, may not be amiss."

"In the first place, the population of Seattle has nearly doubled within the past year, but the city is expending an amount based on last year's assessment and its receipts from its various general resources. As is well known, the heaviest item of expense has been the planking and improvement of the streets of the city, and it is safe to say that these expenditures are now from $10,000 to $20,000 heavier than one year since, for the reason that there is wider territory to be reached and the thoroughfares are much more traveled."

"Since the first of last June, the Council has issued warrants on the road fund for $81,200, and of that sum about $27,000 worth of warrants has been cashed. The balance today yet outstanding is therefore $54,000 in this fund alone. During the month of February the estimated income of the city on the three-mill tax for road purposes will be $30,000. Devoting this amount to the payment of outstanding road warrants, there will yet remain $24,000 unprovided for and outstanding against the road fund."

"You know that the charter of Seattle, by act of legislature, passed in accordance with an act of congress, does not permit the indebtedness of Seattle, bonded and floating, to exceed the sum of $500,000 except for water purposes. Now, there is yet outstanding of the Grant street bonds $30,000, and this, with the unpaid warrants of the city, keeps us close about the limit which we dare not exceed. We propose to wipe out the present floating indebtedness by transfer from the general city fund to the road fund—a resource which we have adopted in the past, sometimes to the verge of cheating other needs of the city. By the next summer, when the receipts from licenses are greatest, the old debts will be cleared off and then we will be again compelled to discount the next year's receipts in the same manner as that adopted during the past year."

"The Council has adopted every possible expedient and has spent every cent it dared for the good of Seattle, and it worries us to think that it should appear otherwise to the public. The fault lies not with us, but with the city charter, which prevents us from incurring any indebtedness beyond the limit. We can have but one hope of relief, and that is the admission of the territory to the Union and the eligibility of our charter to amendment, so that we may have enlarged powers for promoting the interests of the city."

"There is a great call at present for further improvement of the streets by paving. The council cannot possibly inaugurate any general system of pavement at present, but we can gradually substitute pavement for planking on particular streets, as the revenues of the city will allow. The elevation of Front and Commercial streets and the widening of those thoroughfares, we cannot consider at present. If we cannot assess the cost of the latter improvement to the abutting property owners (as it seems we cannot) the city dare not undertake the work out of its own funds. It should be noted that the expenses of the police and fire departments have doubled within the year, though of course our receipts from licenses increased."

"An investigation of the conditions can lead to but one conclusion, and that is that the territory must be admitted and the charter amended, else the Council, though it may be composed of the most energetic and public-spirited citizens of Seattle, will always be a year behind the development of the city. It can't help it."

Mayor Moran added regarding sewerage: "The City Council will not be able to enter upon any general improvement in the matter of sewerage, even when Col. George Waring's plans are received, for a very good reason—it cannot raise the money. The financial limit prevents many general improvements which the council is anxious to undertake, but which, owing to the charter, cannot be taken up."

"When Col. Waring's plans arrive, it is probable that the council will adopt the system he recommends, but it can attempt only to carry out the leading features, by establishing sewers upon those streets where their need is most pressing. If the city only had power to issue bonds I know that the Council would adopt as liberal and progressive a policy for the promotion of the welfare of Seattle as could be desired. That indebtedness which is outstanding now is bearing interest at 10 per cent, while, if bonds were issued, they would be taken at 5 1/4 per cent, at the most. By the issuance of bonds, the present residents of Seattle would not have to pay for street improvements which the thousands yet to come are to derive the benefit from, and which they should be compelled to share the expense of."

"There is but one remedy to the outstanding defects in the charter, and that is the admission of the territory and the enlargement of the powers of the city by the legislature."