CITY OF BOSTON.

Auditor's Office, July 20, 1864.

TO THE HONORABLE CITY COUNCIL:

GENTLEMEN: The fifteenth section of the Ordinance on Finance makes it my duty to lay before the City Council, annually, a Statement of "all the Receipts and Expenditures of the past financial year; giving in detail the amount of appropriations and expenditures for each specific object; the receipts from each source of income, and the operations of the Committee on the Reduction of the City Debt; - the whole to be arranged, as far as practicable, to conform to the accounts of the City and County Treasurer, so that their coincidence may be apparent; also that said statement shall be accompanied by a Schedule of the Property belonging to the City, an exhibit showing the Debts due by the City, the Rates of Interest thereon, and the years in which the same become due."

In conformity with this requirement I have now the honor of submitting the annexed Report, showing the doings in the financial department of the Government for the year which commenced with the 1st day of May, 1863, and ended with the 30th day of April last.

The Treasurer's Accounts (copies of which will be found in the Appendix) show that the balance of

17,232 50 $956,701 20

the close of the year (April 30) of

This balance is applicable to the payment of the

THE NET EXPENDITURES on account of the ordinary business of the City-exclusive of $756,600 for State Tax and $170,125 for City Debt-amounted to $2,233,270.71; while those for extraordinary purposes, such as State Tax, New buildings, War expenses, &c., amounted to $1,952,297.85.

The Net expenditures on account of the WAR, deducting receipts on same account, amounted to $775,861.66, which amount being added to previous years' Expenditures, makes a total net cost thus far to the City of $2,156,500.98.

THE COUNTY ACCOUNT shows a balance against the City of $109,708.33. The balance last year was $106,803.23. Only about one quarter part of the whole expenditures on County account are made, or authorized, by the City authorities or paid through the usual channel for City payments; the other three quarters are made by requisitions from officers of the various Courts, directly on the County Treasurer, and are not in any way controlled by City officials.

CITY DEBT.-New Loans have been authorized this year to the amount of $916,000. There were authorized loans, unnegotiated, at the close of the last year amounting to $331,000. Loans have been negotiated this year to the amount of $850,000, while $170,125, being all that became due, has been paid off. This shows an increase of the funded debt this year to the amount of $679,875. On the authorized loans, not yet negotiated, the Treasurer has made advances, to meet payments for work now going on, to the amount

of $233,046.18. These advances I call the Unfunded Debt.

The total amount of the funded and unfunded Debt

of the City, on the 30th April, was Of which the Water Works owes Leaving for the City Debt proper,

$ 11,248,778 95

6,252,199 83

$ 4,996,579 12

Of the Loans negotiated this year $565,000 have been on account of War Expenses.

WATER DEBT. The nominal amount of this debt now outstanding is $2,992,711.11; the same as last year. None of this debt becomes due before the year 1868, when $50,000 will be payable; after that $ 668,000 will become due in April, 1871. The real amount of this debt, being in fact the actual cost of the Water Works, the interest on the same (including the cost of Gold and the Exchange on England with which said interest has been paid) and the annual expense of carrying on and extending the works, amounts to $6,252,199.83, as will be found under the head of "Cost of the Water Works," where Credit is given for all the Income. The income this year has been $434,254.21, while the actual cost of carrying on and extending the works, including interest, was $530,607.47. The income last year was $ 400,808.36; the expenditures $413,483.11.

SCHOOLS. There has been no considerable expenditure for School Houses this year, no new houses having been undertaken.

on the

The current expenditures for carrying on