Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1921-01-18
City Water Bonds at 5 IL
Per Cent. Amounting to
S103,0 900 Sold by Treas.
THE SALE is CONFIRMED
Net Debt of City is Shown to
be GIT, Showing Gradual
Reduction Since 1917.

The.eaie OF y per cent city water
bonds to b. ]. Van Ingen & COM
pany for sfOs.ooO and accrued in
terest by City Treasurer, Ferd Gar
retson was reported to the Board of
Aldermen last night and the sale
was confirmed by that body. This
sale shows. that Perth Amboy city
bonds have high standard in the
bond market or the treasurer would
never have ve-succeeded in getting the
unusually low interest of s. II per
cent. The Van Ingen Company was
the only bidder on the bonds.
The report of the city treasurer
for the year 1920. received by the
aldermen last night, shows the i'm
proved financial condition OF the
city. The net debt, the. report shows,
has dropped to 6.77 plus per cent.
and under the Pierson act it cannot
again go above the per cent mark.
When the Pierson Act went into
effect in 1917 the net debt of the
city was S.51 per cent. A provision
: was made in the Pierson Act how
ever which permitted of the debt
being Increased two per cent. over
this figure or. 1851 per cent. during
the year in order to complete any
work which had been started and
needed financing. The act provided
however that once the debt was
lowered below per cent. 1t could
never exceed that percentage again.
instead of taking advantage Of
The Two per cent. Leeway allowed
by the Pierson act and increasing
the city's debt the 1913 financial re-
port of Treasurer Garretson showed
4 drop from S.51 per cent. to 7.37
per cent. Another drop in 1913
took place with the debt down to
7.0G. During the past year this net
debt has been brought down to 81 :.
per cent.
The averag ge assessed valuation of
the last three years is used in COM
putting the city's-net debt. the 1920
figures having been secured from
the average of the 1918, 1919 and
1890 assessed valuations on real
properly. This average was $21.-
tion was $2O,79O,732: that of 1919
was s21,4Ss,34s, while last year it
was s22.58a,102. Although the 1921
assessed valuation figures have not
been announced officially as yet 1t is
understood they win exceed last
years by about $1,000,000.
An important feature of the treas
urer's report is the fact that more
than one-half of the city's debt Is
caused by temporary water improve
ment bonds. The net debt at the
end of 1920 was s1,464.514.60. The
gross debt was S5,637,425 from
which deductions amounting to s4.-
172.910.40 were made.
A report of the sinking fund COM
mission for the year 1920, was re-
ceived by the aldermen last night
and ordered spread on the minutes
and placed on file. This report,
which has been audited and copy
filed with the commissioner of mu-
nicipa. accounts at Trenton shows
the fund to be in thriving condi-
ton and growing fast.
The balance sheet on Dec. 81.
1920, showed the assets OF the COM
mission as follows: Current, general
cash, s7,326.11 and water cash,
s42,096.22. making a total of $49.-
4s2.33. Investments, general $685.
4ss43 and water, $4,000, making
a total of sSOS.42S.43. Deferred.
city Of Perth Amboy' s17,70s.74:
taxes (arrears. 1916 and prior)
s10S. .269.45: confirmed assessments.
$42,695.16; certificates of sales,
s1,S5472. making a.total of $165,-
52S.07. Grand total $1,01S.37s.S3
Inc lldDlilkie3 StlOW. SlihiuS luHQ
reserve for the retirement of bonds,
sS52.S50.76: special sinking fund
reserve, s11116.S7 and 2 surplus of
$6.213.6S.
During the year 1926 the income
on the sinking fund account. con-
sisting of interest. amounted 10 $49,-
740.76. of which $33.021.93 repre-
sents the distribution of az per cent
interest on bond amortization re-
luirenents (Which is required by
aw). This leaves a net Surplus in
the account for 1920 of $16.71S.S3.
but at the beginning of last year
there was a S10,505.15 deficit. max
ng the net surplus on Dec. 81, 1920,
n the sinking fund, s6.213.6S.
The sinking fund reserve during
the past three years has more than
doubled itself. increasing from
s420.464.02 at the close Of 1917. to
sS52 .S50.76 at the close of 1920.
There was no definite reserve when
the sinking fund commission organ
zed four years ago. In 1917 II was
decided to set aside as reserve
s420.464.02. In 1918 this reserve
lad climbed to s59S.79S.40. In 1919
t was s754.675.70. and at the close
" 1920 1t was $S52.S50.76.