Perth Amboy evening news., 1919-05-24
CARRETSON IN
STATEMENT ON
C|TY'S DEBT
City Treasurer Points Out City
is Not Nearing Limit of
Indebtedness

City Treasurer Ferd Garretson in a
letter to the EVENING NEWS ans
wers the recent veto of Mayor Dorsey
on certain paving work, in which the
mayor said that city was nearing its
debt limit, by saying that within the
past two years the city debt has been
decreased and that the city is further
away from its debt limit now than 1t
was two or three years ago.
Mr.. Garretson expresses sympathy
with the mayors stand on the Her
bert street paving, saying that he, as
mayor vetoed that paving also. His
letter follows:
Ia his xeto message of certain
street paving projects Mr.. Dorsey re-
Gently informed the Council that we
are rapidly nearing our debt limit,
and / note that you comment favora-
bly, on his stand that street paying
should stop to make way for other
improvements and that we have gone
far enough for the present. / have
no desire ii discuss the merits of the
improvements he has elected to block,
particularly as 1 held up the Herbert
street paving when mayor and do not
favor it at this time, but would like
to call attention to some figures to
offset the impression that the mayor
would create that we have been In
creasing our debt.
I'm the printed proceedings of the
Council, February 10. 1917, you will
find that the net debt bore to the av-
find a debt statement showing a net
debt of S1,450,6 ,6SS.51 and the percent
age that the net debt bore to the av-
erage assessed valuation was S.51 per
cent. In the debt statement published
In the minutes of April 7. 1919, over
two years later, the net debt is shown
to be $1,385, ,2S7.49, a decrease of
5,401.02. and the percentage that
the net debt bears to the assessed val
uations is 7.37 per cent, a decrease or
LA per cent and that statement in
cluded the $4,000 bonds which 1t Is
proposed TO issue to pay for the paw
ing of Fayette street and the Amboy
avenue grade and curb so we are not
nearing in fact we are not as near
as we was two or three years ago"
zone or two other points occur to
me that might be of interest. Up to
two years ago it was found necessary
to borrow the entire amount of the
tax levy in anticipation" before any
of the taxes of any certain year was
collected. Two years ago there was
S25, 1000 less than the budget total
borrowed and last year $4,000 less.
This year the prospects are that n
much better showing Will be made
and all this means a saving In interest
payable. The credit for this con-
lector of revenue.
"When the Sinking Fund Com
mission was created 1t was found that
the amount in the fund was something
like $4,000 short of the amortization
requirements and that there were
many securities in the fund drawing
no interest. having no maturity date
and no provision had been made 70 re-
tire them. All this has been changed,
he of h nVarCOmG
il will not be necessary to put the
special sinking fund item" in the
budget after this year. This VIII re-
duce the amount TO be raised by tax
alton for that purpose by S5,3
"I believe the foundation has been
laid for a lower tax rate and the bene-
fits from this situation will be felt IN
two years. 1t seems to me that .he
increased cost of running the street
fire and police departments and the
schools, due to the high prices Tor
supplies and the general increase in
wages are the principal factors IN
boosting the tax rate than the pond-
ed debt With the improved condltlon
in the bonded Indebtedness and the
hoped for return to normal prices lot
supplies and material together with
the increase in valuations due to the
construction of new buildings which
is anticipated will follow the signing
of the peace treaty, it seems to me
that unless there is gross extrava-
gance in the conduct of the city's
business the tax rate will be material
ly lowered Then it will be interesting
TO note how the political Jugglers
pass out the credit or blame.
'HThis is not intended for publica-
ton. I merely want to tell you per-
sonally how I feel about it,
Yours very truly.
FERD GARRETSON.