Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1911-03-31
ACTUAL COST OF BOND ISSUE

ACTUAL COST OF BOND ISSUE
The following figures were pre-
sented to the Good Roads Club last
Saturday, by II. S. Bowen, and are
submitted herein for the enlighten-
men of the readers of this paper who
may have confused ideas as to cost of
bonds proposed to be issued for road
building. These figures have been in
spected and gone over by men who
know. The statment is short and
simple, and can be easily understood.
Here it is: Amount received on
81, 100000 assessed valuation, at
SO cents per 500, 500, 900 road tax.
&nterest on $625, 600 at 5
per cent, S 3I.25O
Sinking fund, 1875
Total expenses bonds, S 80, 625
Subtracting this total ex-
pense of bonds from
amount road tax, leaves 375
And the account is balanced 80. 900
Add to the 1875 balance in the
treasury at the close of the year, the
i State Aid fund of So, 600, and we
have So, 975 left, and this without
any increase of taxation whatever
But, it takes about z 1-2 per cent of
the yearly tax to cover expenses.
delinquents, etc. Take TIP per
cent of the $50, 600 which is So, 925
and subtract this from the So, 975
in the treasury, and we still have
81, 05O left, and no increase in the
tax levy. Another point: This calcu-
lation is based upon the cost of an
issue of $625, 600 at one time. This
need not be done, and will not be
done. If only $125, 900 is issued for
each year for five years, there will be
saving of about Sc, 500 That is.
II yearly issues are made the cost
will be Sc, 500, or thereabouts. less
than if entire issue is sold at one
time
Further still: The impression is
sought to be made that bond issue
of $625, 900 would mean great in
crease of the county levy. Such is bv
no means the case. A bond issue of
$625, 600 to be used within five wears
means $125, 600 per year. Surprising
this amount to be spent, divided pro-
portionally between the three dis
tricts, would mean Sc, $50 per year
interest, and 81, 475 sinking fund. To
raise this amount county levy of
only 10 cents per one hundred dollars
would be necessary, and leave a bal
ance. $50 that the present county levy,
90 cents, it appears would take care
of the entire issue of bonds and more.
All this does not take into considera-
ton the increase in assessment valua-
ton for the next few years, i'm the
development of large properties, now
going on in the county. Every year
the county is growing richer. AS
sessable values are becoming larger
and larger, and figuring conservatively
judging the future by the past, the as
sessable valuation of property in this
county within the next fifteen wears
will not be less than $4,000, 600.
Ten per cent levy on this amount
would mean $4,000. AS the wears
go by the burden of the bonds''
grows lighter and lighter, until. to-
ward the last, levy of SO cents.
the present rate, on the then assessa-
BILE values, would enable "posteritv''
TO pay oil all the notes still out
standing, and have hundreds of thou.
sands of dollars available for further
road building. This is no "pipe
dream The truth is, if this bond
issue were for million dollars
instead of the proposed amount
of $625, 600. the county could
handle it with all ease, and after a
few years the people will wish thew
had made it million at the start,
which should have been done, if the
law would permit.