Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-03-23
C|TYS ABILITY TO
MEET EXPENSES
MENACED BY BILL
'limit on Borrowing Power
Would Embarrass Newark
and Essex County.

If the Wakelee bill curtailing the
Borrowing power of municipalities be-
m a law the city of Newark will
be greatly harassed. So will the coun-
ty of Essex, the borrowing power of
which will at once be reduced to a
margin of $500, 900 in round figures.
The measure will be dis%approved al
the next meeting of the municipal leg
islative conference.
The bill provides that no city in this
State shall after it's passage incur a
act funded debt in any n or for
any purpose, exceeding Z per cent. Of
the valuation of taxable real and per-
sonal property assessed for taxes at
the last annual assessment. In the case
of counties the met funded debt" limit
is placed at 2 per cent. of the valua-
tion of the taxable real and personal
property. Towns, boroughs and other
municipal corporations are permitted
by the provisions Of the bill to borrow
a sum up to 10 per of the taxable
real and personal property.
Under the Z per cent. limit, upon
which this city would have to work IL
the Wakelee bill is passed, a borrowing
power margin of only Sc, 800, 900 would
remain. If the courts should interpret
the definition in the bill of met funded
debt to mean that the net water debt
should be deducted instead of the gross
water debt, in ascertaining the met
funded debt this amount would be re-
duced by more than s4,000,00 0, leaving
a margin of but 81. 500, 600. Bonds that
will probably be issued by the city
within the next five years are estimated
as follows:
For schools, $4,000, 900; for public
buildings and baths. $500, 600; for
meadow reclamation. $1,000. 600; for mu-
nicipal lighting plant, $1,000, 600; for
Passaic Valley sewer, $4,000, 900. Total,
&c. 500, 900.
With the margin of &c. 500, 900. it is
estimated thai the value of the city's
ratables must increase nearly $4,000
900 In the next five years to meet these
proposed hond issues. IT is probable
that such an increase will be realized
in that time, but at any rate, the bor-
rowing power of the city would then
be at an nd, even without considering
that the city must meet 6S per cent. OF
A.. - ~ +ba oorptv,r deht
inc ine,eaeo ..oaa 60 soo
on Smouid Tue ,iasn :. - oh1,o,s that The
wv ny tne eoui" 49, s.u;n's
eiluation wo.iu We 49, - Ts..v
ne si.ua'ion w iusa0 ~,;tt
County - ,noie soao ne'.e
the cry. ne i'V. .or noo mo- TS. . 20,
cent, limit would make the borrowing
power onlv So. 700. 900. The county's
Powel ons - co ~ mn 1nh;ot
presen. e = $500 s.-c ooo =.
Wouio leave a hafsl VI oA,y SooV,vov -
the event Oh the pass"ee VI II ""N
lee DIN. j..
we. iuiiueu ~
pni aeanM az nr-oss enna
alter oeauIlihe = ~ nS $50
ed ueot 'ne am 80 ~ ena az.
heio dsdinSs SUI. $50 49, -
amount VI aa,n,
lncurreu ioi ne =
OF ihs ing AZ s,,nn,u n,,r;fcation ~
ztan - +ha nb.b,tort
- =, o,,ost;on loo,
- s,nn,ns fnnds heId N,
tne Na 20 s,,cb f,,nded wate,
Tue payment
oepl'
"ross $50
Inc Dill oenhes sfoss ~;
as meanl an u ~ go. - 80
gatlons OIL the poai.ie"i 49, 49,
ton, dpiy autnoriAeu Gnu 49,
py Written neaa,aI ~ ~oesc;a1s
duly aulhorileu ssn.a, ~ ia,
WINCH are To 70 paw .a,;+,