The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-06-13
INTEREST ACCOUNT
An Item That Cuts Quite a
Figure in Arriving at
the Tax Rate.
PARK MONIES USED LAST YEAR
$4,000 in the Tax Levy This
Year-Finanee Board Re-
quirements.

The exclusive announcement in yesterdays
JERSEY CITY NEWS that there is a strong
likelihood of a reduced tax rate caused gen
eral rejoicing amongst property owners
and resulted in bringing forth exclamations
of approval of Mayor Wanser's splendid re-
form government. The current years tax
rate is S27.50 {, a reduction of so cents on the
thousand over the preceding year. The re-
duction is not alone due to Mayor Wanser's
economical government. The Tax Commits
sioners did splendid work. Valuations were
equalized, and complaints Of favoritism
were not heard. Property in all parts of
the city was brought up to a uniform STAN
dard. The rate was struck from ratables
amounting to $S5, 191, 055, which embraces
both real and personal property. OF the
whole amount of ratable the First district
real and S2,5S5, $50 personal; Second
district, So, 669, 495, of which 5000, 595, was
on real, and S776,900 On personal; Third
district, S12, $3.50, 400, of which SIl,91T 300,
was real and S9iS,50 personal; Fourth dis
trict, SIS, 529, 100, made u of SIP, 645, 900 real,
and 1881, 100 personal; Fifth, $l1,999, $50,
Gil, 347 $50, being on real estate. and S65l,-
b)U Oh D6IStldl, OlAUA. 9@%s tOO, u
which S21, 1856, 500, was real, and 81, III 100
personal. making a total of S7S, 14l,055, of
real estate, and Sc, 1860, 600 personal. A close
perusal of these figures will show how we'll
valuations were equaliZed.
CITY'S INTEREST ACCOUNT.
In addition to the reduction of the various
estimates last year, there were other things
which aided the reduction of the tax rate.
The city's interest account is a very import
ant factor in the making-up of the budget.
Provision for the prompt payment of all in
terest accounts is the first thing considered
and disposed of. 1t effects the tax rate to a
greater extent than is imagined. Last years
interest account amounted to 1867, 132. rs.
This sum did not include $50, 100, which had
ing funds, created for the ultimate redemp-
ton of bonds. These sinking funds are
numerous. Nine cases out of ten where
bonds are issued the Finance Commissioners
adopt resolutions making it necessary to
place in the tax levy two per cent. of
each issue, to be deposited in a sink
ing fund for the redemption of the
issue upon maturity. Last year these per-
centages amounted to S85, 100. The object
of the Mayor and Finance Commissioners at
that time, as now, was to reduce the tax
rate. The $50, 100percentages worried them
Until Comptroller Hough called their at
ten ton to the fact that the county owed the
Guy boa. JOt.Sl Ou dCCOuQU VI UlO ulOIiiOc
raised for public park purposes, which was
subsequently abandoned. This sum was then
taken as a part of the Sinking Fund monies
and it became necessary to place only $780,
lO2.7 70 in the levy for Sinking Fund pur-
poses.
e FINANCIAL POLICY.
All monies raised for Sinking Fund pur-
poses do not get away from the city. Under
a clever financial policy now being inaugu-
rated by Comptroller Hough the city from
time to time borrows this money from the
Sinking Fund Commissioners at a much
lower rate of interest than it could be OBJ
tanned from banks. In this way the city
pays interest to the sinking funds, and all
accrued interest is placed to the credit of the
different funds created for the redemption of
certain issues of bonds.
The plan allows the city to use its own
moneys and all interest goes towards
the ultimate reduction of the debt. Under
the old system sinking fund moneys were
deposited In the city's repositories.
Those institutions used it and OBJ
tanned a high rate of interest for it
When the city wanted money, no matter
how much was or deposit tho banks were
asked to advance it on temporary loan bonds.
This they did and charged AZ per cent. for
it's use. So in reality the banks were COB
bling in AZ per cent. on money deposited
and AZ on money loaned to the city, thus
making y per CouO. Ou bu6 Guy. Inc udyS
of such transactions have passed, and the
city will be the one to get the interest not
the banks.
IN THE BUDGET THIS YEAR.
This year $4,000 has to be placed in the
tax levy for Sinking Fund purposes, making
an increase Of $780, 600 in the levy. To meet
this increase it is apparent that valuations
must go up. If not, the rate must. But it
is hoped by equalizing valuations in certain
localities the rate will go down a peg. The
interest account will show a decrease, Comp
troller Hough having fixed $3.50, 600 as tie
approximate amount to be raised. This is a
decrease of about s. 1000, and when it is con-
sidered that 81. 600 interest has been saved
and that $110,0 00 is to go into sinking funds
for the reduction of the city's debt, property
owners should feel encouraged.
During the past year S550,000 Of City
Hall bonds have been issued. and provisions
must be made for the payment of $27. 800 on
these.
On June 1, 5000, 900 of Z per cents. fell due.
They were renewed at 5 per cent, the
city thus saving $4,000 interest yearly.
will be applied to their retirement.
They are thirty year bonds and $12, 900,
which represents 2 per cent. of the issue,
will be turned over TO the Sinking Fund
Commissioner for investment. In thirty
years the interest moneys will be sufficient
to redeem the issue.
On September l, 1894, s205, 500 of Z per
cents fall due. This batch will be redeemed
and the city saved S14,365 interest. During
the year the city has also redeemed $4,000
of 5 per cent. Police bonds and $4,000 of 5
per cent City Hall bonds. Interest to the
amount Of 81, GOO is saved on these.
Jersey City is all right" said Comptroller
Hough yesterday. 1.-THE time is coming
when our interest account will amount to
very little and If the present policy is pur
sued the city will pay itself interest not
banks. This will soon wipe out the debt.
FINANCE BOARD REQUIREMENTS.
The Tax Commissioners have been in
formed that the Finance Commissioners will
require more money this year and they are
preparing to meet it. Valuations in the
Second, Third, Fourth, Fifth and Sixth
districts will be raised and Notwithstanding
the fact that a deficiency in the ratables of
81. 500, 900 exists, they hope to be able to in
crease realty in certain sections in keeping
with advancement made in value and also
to find more personal property. The County
Board for the Equalization of Taxes will
also give the city a helping hand by increas-
ing ratables in other parts of the county,
which will relieve this city of its heavy
conntv burden.