The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1913-02-22

Dear sir:-Pursuant to your re
guest through your secretary Mr.
G. G. Weber, / beg to submit here
with my report of various compute
tons of propositions referred to me
| to-Wit:
Proposition No. Required, the
number of series and number OF
bonds to each series that will be
necessary to liquidate a bonded in
debtedness of $4,000 based on a
rate of taxation of Ia mills on an
assessment of s1,862,93o, bonds to
be retired in periods of five years,
considering interest on sinking fund.
Promising that the assessment will
remain constant during the period of
the Indebtedness, the tax revenue on
the basis Of liz mills will be $2794. 40
per year. These yearly installments
placed in a sinking fund bearing 8
per cent per annum will be sufficient
to retire the Indebtedness of $35, 1000
in twenty years, and provide for pay
ment of interest annually on the
Indebtedness at the rate of 5 per
cent, which, infer, is the rate your
certificates or bonds will bear, the
rate not being stated in your propo-
sition. / find this proposition-on
the above stated basis-works out as
follows:
Interest at S per cent, can be met
annually on amount of bonds out
standing.
At the end of the fifth year $1,000
of the bonds can be retired, leaving
a surplus of $514.49.
At the end of the tenth year $1,000
Of the bonds can be retired. leaving
a surplus Of $999.48.
AT the end Of the fifteenth year
$4,000 of the bonds can be retired,
leaving a surplus of $419.91.
At the end Of the twentieth year,
the balance of $1,000 of bonds can
be retired. leaving balance of
s14O2.59
While the above figures are theo-
retically correct, it cannot be taken
for granted the proposition will work
out SO exact in practice, for taxes at
best are paid in installments ranging
over a period of several months,
which will necessarily cause Varia-
ton in the sinking fund interest
yield, which, you will notice, has been
taken as 8 per cent, this being the
customary rate of interest allowed
by banks. / have not deemed it nee
essary to compute the results or the
basis of other interest rates for the
reason that 1a per cent, / per cent,
Or even 1a per cent more would
make such little difference that any
additional interest secured by a |
slightly higher rate of interest on
your yearly balances could advan-
tageously be used for collateral i'm
Proposition No 2-Given a revenue
appropriation of $4,000 per annum,
will this be sufficient to retire an
of $4,000 in 10 years,
for interest at The rate of 5 !
per cent on the amount of Indebted
ness outstanding at the end of each
year, and considering interest on /
sinking fund at the rate of 8 per
cent per annum?
find that on the above basis. the
Of 5000 can be liaui-
dated II TO years as fellows eer-
6 5liEle paya bic IL one and two
7 year. ear s10de each; certificates.
payable in 8, 4, 5, s, z and 8 years, t
1880 each; 2 certificates of $4,000
each, payable in 8 and 10 years.
Annual interest at 5 per cent on
amount of certificates then outstand-
ng is provided for, and small sur
plus of $597.88 will remain after the
have been liquidated.
For the same reasons stated under
No. /, have not daemed
t necessary to compute the results
N the basis ct other interest yields
han 3 per cent.
Proposition No. a=What rate of
ax3=ation viii be necessary to raise
$4,000 per annum on an assessment
# S4,174,0O0?
In order to raise a revenue of l.
5000 on an assessment Of the amount
stated, the rate of taxation must be
n tenths of mill.
Respectfully submitted,
A. j. MELANCON.
The following ordinance was read:
Be it ordained by the police jury
T the parish Of Ascension, state of
louisiana. That a road district be or
,aEnnlzed and created Of all that por,
ION OF the parish of Ascension stu
ted on the west bank of the Missis-
lppl river, comprising the first, sec
nd, third and fourth wards of the f
arlsh OF Ascension, and described
S follows: Being all the territory
ltuated in the parish of Ascension
nat is bound On the north and west
y the parish of Iberville, east by !
ne Mississippi river and the parish :
| st. James, and south by the par ,
81 OF Assumption, shall be en-
raced in the limits to be known as
ne First Road District of the par
III of Ascension.
Mr.. spahr moved that the ordi=
ance be adopted, which motion was {
eeonded BY Mr; Gautreau ana adopt. /
& BY the following vote; Yeas I
nahr, Curse, Meter, Landry, Armi- (
age, Newman, Gautreau; nays-O:
bsent-Causey.
The following ordinance was read:
Section l. Be it ordained by the 4