Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1878-02-12
FINANCES OF THE CITY.

r
REPORT OF THE CHAIRMAN OF THE FL
NANCE COMMITTEE.
The following communication from
the Chairman of the Finance Commit
tee to the Mayor of the city, was read
before the council on Tuesday night
last:
STAUNTON. VA, Jan. %, 1878.
Hon. W. L. Baths, Mayor:
Dear Sir:--In compliance with your
request, | beg leave to state that the
bonded debt of the city is now S266, 100,
(which includes $1,000 water bonds Just
issued to Menefee & Farkins in full of
contract price.) Of this, 100000 debt
was subscribed to the stock of the Val
ley r. r. Company and, it is claimed
by the friends of that road, will be
paying investment. If this be realized,
the city may, at some future day, be able
to exchange one for the other and thus
virtually decrease its debt to that extent.
The balance Of the debt was created as
follows: $4,000 to build the new water
works which are ample to supply our
city with water, even should it grow to
five times its present population; $50, 900
to buy land and water rights, and which
will at almost any time sell for the same
amount; and the remaining $4,000 for
general street and city purposes. In the
above amount is included $14, 900 of
Manuscript Bonds issued to w. w.
Donaghe's executors, for the purchase of
the Spring Farm, upon which the pump
house is located.) Said bonds are due in
1881, and hope the council will annual
ly set aside, out of its revenues, a suf-
ficient amount to take up said bonds
when due. This will bring down our
bonded debt to $685. 100, and hope there
will be no necessity to increase it for
years to come.
The floating debt is about $4,000, and
the current expenses to the close Of the
fiscal year will beabout $4,000, but wehave
enough uncollected taxes for 1S76-77 in
the hands of the Treasurer to meet this.
Up to 1878 our bonded debt was very
small--say about $50. O00-and there was
no fund provided for its ultimate re-
demption. Since, however, it has gotten
somewhat larger, the council has Great
ed q sinking fund, to which they appro.
pirate annually one per cent. of the
amount of the debt, which is promptly
invested in Understanding bonds. The
interest accruing on said bonds is col
lected every six months, and again in
vested, and in that way said fund grows
very rapidly.
Our bonds are made payable 80 years
from date of issue. 1t is generally CON-
coded that when debt is created, and a
sinking fund provided for its ultimate
redemption, it will take said fund, if
properly managed, 80 years to accom-
plish its purpose, but as our sinking
fund committee very wisely concluded
to buy the oity's own bonds, which they
have been able to do so far at consider
able discount, and if they can continue
to do SO, in my opinion, it will not take
much over 20 years to extinguish the
debt.
The Sinking Fund Committee now
holds S11 900 of the clty's bonds, and
have funds enough in hand to buy $500
more-all of which has been accomplish
ed in the last three years and will from
now on grow rapidly.
L think it fortunate for the city that
the committee has determined and been
able to buy the city's own bonds, as they
thereby
LIST. Create market for them, giving
them standing in the moneyed centres,
thus strengthening the credit of the city.
I'd. Avoid the risk of investing in
securities that may at some future day
become worthless,
And 3rd. That in the course of ten
years the city will hold the majority of
the bonds.
These are advantages which, ia my
opinion, cannot well lie over estimated,
aud I will venture to say there is not a
city Of the size of ours, that has had it's
bonds on the market so short time,
whose bonds will bring better prices.
The city now owns between SAC, 900
and SOC, 1000 worth of real estate, ono
fourth of which she has no use far, and
as soon as the business prosperity of the
country reyives, wifi be able to SELL
According to ordinance the amount
realized therefrom has to be turned over
to the sinking fund.
Our real estate is assessed, at present,
at 100000 and personal property at
81 900, 600, which with present rate of
taxation Zone per cent. together with
the revenue derived from license and
other sources, think will be sufficient
to meet our current expenses and pay
the interest, SO there will be no necessity
for increasing the taxes; at the same
time am of the opinion that they can.
not be decreased fe; s0ue years t6come
Our Stata Legislature has made 1t obllga.
tory on every city and corporation with.
| in its limits, to make their assessment
conform to that of the State. AS ours is
higher for city than for State purposes
it will become necessary to increase the
per cent. as now charged, but In the ag.
! efegafe it will not be more, as the assess.
ment will be reduced according to the
increase in the rate.
Our water tax, as at present assessed
does not yield reyspNs enough to pay it,
expenses, end will therefore have to bs
snorsased, IS, in my opinion, it ought t
be selfslstaining, at least, and 90 eiti
zen ought to complain, @s our water tal
is comparatively nothing to what it il
il o.Asf cities.
YoQ VIII find our financial condition
TO compare favorahly with that of any
other city, and I trust the city authori
ties will keep 1t so.
Respectfully,
| TSi n vx1Tnz