Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-10-25
BONDING 4 CRY

BONDING A cry
In its effort to create sentiment in. favor Of bcndids
the state and is subdivisions without limit. the Socialist
lCourier-News Of Fargo tries to make Its readers believe
that the cities Of North Dakota may, and do now. issue
public bonds for all sorts Of local improvements, and that
they may and do bond without limit. The Fargo paper
says:
II they tthe people Of the. cities) want paving to
improve their property, they advocate bonding the Il
city for that purpose.
II they want sidewalks, waterworks. electric
lights or spacious auditoriums. they favor ilsuins
bonds.
Part Of this is entirely untrue. and the rest is true
only in part.
No city in North Dakota does or can bond itself to
|defray the cost of paving, sidewalk or sewer construction,
except that for certain improvements the city may pay
a fraction of the total cost, in no case exceeding 20 per
cent, and in no case exceeding the value of the improve
ment to the community at large.
Such Improvements are treated as only ouasi-publtc
for the reason that their purpose and effect is primarily
to enhance the value Of the property Immediately con-
tisuous. and to increase the convenience OF its owners.
Taking the construction of pavement as an ilustra-
tion' after the work has been authorized in due form,
and its full cost ascertained, that cost is apportioned
among the owners Of the property in the district affected
and the city at large, the practice being for the city to
pay 10 per cent Of the cost. Tho other 80 per cent Is
assessed as a direct tax against the property affected.
and the assessment can in no case exceed the benefit to
the property. The tax is paid solely by the owners of
property in the district affected. Residents of Other parts
of the city are not affected except to the extent of the 10
per cent levied against the city at large.
The amount which can be levied against any piece
of property is limited to the actual value of the benefit
OF the improvement to that property. and the city itself
cannot issue bonds to cover its own share Of the cost Of
these special improvements, or of waterworks, light
plants. ahditoriu1ns. or anything else. beyond the limits
prescribed by law.
The amount of indebtedness which a county. a city.
or the state itself can incur is strictly limited by law, and
the whoiesonaeness Of that restraint has been shown on
innumerable occasions. The indebtedness Of cities and
other subdivisions is fixed on the basis of assessed valua-
ton. In that way the actual indebtedness may be in
creased from time to time in accordance with the increase
of the population and wealth Of the community, and the
consequent need for greater public expenditures. That
is a logical and very satisfactory arrangement.
The indebtedness of the state is fixed in the consti-
tuition at a lump sum. 5000. 600, which, adequate though
1T may have been in the beginning, has become inadequate
for such a state as North Dakota has become. The SEN
|sible plan would be to raise the limits to a point consist
ent with the present needs of the state, and to base the
sum on the assessed valuation, SO that as the wealth of
the state increased its power to incur indebtedness would
expand in proportion. y
The purpose Of the Socialist amendments is to re-
move all limits Of Indebtedness from the state, counties,
cities, school districts, and everything else, and at the
same time to encourage the mourning of debt by making
it possible for all of these public bodies to engage in bus
mess Of every kind, whether or not germane to the real
purposes of government. @ $%E@