Perth Amboy evening news., 1921-04-09
VALUATIONS AND CITY PROGRESS.

In spite Of the fact that the city treasurer's
report shows a commendable reduction in the
city bonded debt for the past year or two. we
are still too close to the debt limit fixed by law
to be able to accomplish very much for the ad-
vancement of the city in any big way. Perma-
lnent improvements such as school houses, parks
Sewers. harbor development and the like. can
be made only through the issuance of bonds
Issuing bonds, however, does not relieve the
peopIs from paying for the Improvement. The
bonds simply spread out over a long term OF
years the cost of such Improvement. While
bonds are issued to cover a period of from
twelve to thirty years usually, to be paid in full
at their maturity. the interest on the bonds
must be paid each year and in order that the
city may have the money to pay off the obliga-
ton when II falls due, q certain amount Is set
aside for that purpose each year. called a sink
1nr fund. The amount that 10 to be set aside
each year Is determined by the amount of the
bond and the period for which 1t is to run.
This amount IL placed in the city budget each
year to be raised by direct tax.
II n thus apparent that by issuing too many
bonds all at once the interest to be paid each
war and the amount to be set aside in the sink
1nx fund would be too great for the taxpayers
10 bear. Because some municipal boards have
been reckless in this matter. loading up with
more bonds than the people could bear and in
fcidentally mortgagins the city 80 that its, credit
has became impaired, the state legislature
passed a law limiting tine amount OF bonds
that Z municipality might carry at one time.
This was wise legislation.
To determine the municipality's net worth a
board Of assessors IL appointed who go about
4 a. -y.cfr~ = %~tr vn1,to nm the real estate
and personal property TO be found within the
city limits. The law says that all this property
shall be assessed at its full value. In other
words, il q piece of real estate will bring $4,000
in an ordinary sale the law says 1t must be as
sessed at that figure. II q house costs $4,000
70 build and will bring that figure at a sale, 1t
1nust. according to law, be assessed at that
figure.
It il 4 we'll known fact, however. that no
where in the state of New Jersey is property Of
any kind assessed at its full value The law Is
deliberately disobeyed. Because it is disobeyed
all kinds of abuses creep in. If one section
violates 1t . little bit. another section will violate
Il Z great deal more. and so it goes.
Realizing this weakness, county boards and
,e boards have been created in an effort to
>Alize the tax valuations. but thus far they
I've not accomplished very much.
a matter of fact the whole system of
Ition now in vogue here is a failure. 1t
hlizes Improvement and puts a premium on
Aect. The system of taxing land at is true
Tue and exempting buildings and personal
operty is far more satisfactory.
erth Amboy has been growing so fast in re-
years that the new buildings which have
kadded to the ratables annually has so in
the net worth of the city that its bor-
capacity has been advanced each year
/ bonds could be readily issued to take
Be the improvements that were necessary
ut disturbing old valuations very much.
ice the war, however, and the accompany
high prices. new building has fallen off I'M
it is comparatively negligible. On top of this
. state law has limited the extent to which
kzs city can borrow on its assessed valuation SO
today we are confronted with q situation