The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1910-03-04
COUNCIL ADVISED
IN THE PREMISES
Under the Law it Appears That Hat
tiesburg Has Already Sold Bonds in
Maximum Amount Prescribed BY
Law-Mr. SuIIivan's Opinion.

Under chapter 1S9 laws of 1908, the
mayor and board of aldermen may is
sue the bonds of the city for the pur-
pose therein named, not to exceed
in amount. including all outstanding
bonds, seven per centum of the assess
ed valuation of the taxable property
of the municipality, but is the amount
of bonds, including all outstanding
bonds. exceed seven per centum of
such assessed valuation, then the
bonds cannot be issued until author
lied by two-thirds of the qualified elec-
tors. and an election must be ordered
for this purpose as the first steps to be
taken without regard to a petition by
the tax payers. There are two excep-
tions to this rule, which are as fol-
lows:
1st. Bonds issued to liquidate a
past Indebtedness are not included.
End. Bonds, the proceeds of which
have been invested in enterprises pro-
ducing sufficient revenue over and
above their operating expenses to pay
the interest on such bonds are not in
cluded.
The total assessed valuation of the
city of Hattiesburg for the year 1909,
is $7,54O,921.7O.
The total outstanding bond indebt-
edness is $519,5OO.OO.
The amount of the proposed bond
issue of $S0,OO0.0O, added to the out
standing bonds, aggregate $59s, SOC. 90.
This amount exceeds seven per
centum of the assessed valuation.
The total outstanding bonds invested
in the water works plant is s107, 900. !
The proceeds of the waterworks !
bonds are invested in the water works |
plant, and if this plant is producing
sufficient revenue over and above it's
operating expenses to pay the interest |
on these bonds, then the amount of |
the water works bonds can be de-
Quoted from the total amount of the |
outstanding bonds, and by doing this |
way, we find that the balance remain
ing on the outstandinging bonds is
less than seven per centum of the
total assessed valuation in the CITY. |
If this deduction can be made. then
the proposed bonds for building a !
school house can be issued without |
first calling an election unless 20 per
centum of the adult tax payers of the
city shall petition against the issue
of the bonds.
In determining whether or not this
deduction can be made. we must find
that the revenue from the water
works plant over and above the oper-
ating expenses of the plant is suf-
hcient to pay the interest on the
water works. The total amount of |
the water works bonds is $1O7, 100000,
and the interest therein for the year
1909 is $5,l75.0O
The total amount of actual revenue |
derived from the water works plant !
over and above its operating expenses
for the year 1909 is between 81. 10000 |
and 100000 as I am informed. This
AMOUNT, of course. is not sufficient to /
pay the interest of $5,175.OO on the
water works bonds for the year 1909.
1t seems, according to this show
ing, that the SLOT 100000 water works |
bonds can not be deducted from the |
total amount of outstanding bonds so |
as to bring the amount below seven
per centum of the assessed valuation
of the city. If this can not be done,
then the total amount of the outstand-
ing bonds of the city including the
proposed bong issue Of sso'Ooo.oo is