The Bridgeport times and evening farmer., 1921-05-24

2o mills it would have brought the tax rate Tor that year up to 24.4 mills Wh1le this was considerably higher man the preceding year, IT Is Tar short of the tax rate for 1921, 29.3 mills
 State Tax Notes-$24s.577.
 Authority to borrow money and issue notes for the purpose of pay ing the State Tax assessed against the City was granted by the Legisla- ture April 5, 1917.
 The State Tax becomes due and payable November 10th each year. The city pays this tax from funds on hand, and later reimburses itself by the sale of notes. If funds are not available in the general treasury, the City secures them through the
 Prior to the Act of 1917, the City made provision in its annual budget for the payment of this tax. Through the adoption of the practice of issu- necessary to provide for the pay ment of the notes in each years bud get.
 The effect of this measure was to reduce the tax rate for one year. Have the Bonds Been Issued for Cor
 rect Periods? -
 With the exception of that portion of the debt shown in this statement the City has been conservative in pre- scribing the life of bonds issued. Practically all bonds issued are for periods which approximately repre- sent the life of the improvement. Bonds for buildings have been linn ited to 25 years; for new streets and widenings, the same; for sewers, to 25 and 30 years. Bonds issued for Warrenite pavements have all been issued for five years. The one pos sible exception to the statement made tion of the Grand Street bridge, which is to be paid off in 50 years.
 Is the Debt Too Large?
 amount nn 1eIi1et of the debt of r. a municipality ] becomes too large raises a variety of interesting questions.
 It is perhaps not understood that all of the property of the citizens of Bridgeport is liable for the pay ment of debts incurred by the City. If an action were ever brought, it is probable that the personal proper ty would be removed from the jur- iSdiction of the city, which would leave the real property to pay the debt. Eliminating the angora goats, sheep and other personal property in- cluded in the classified list of taxa ble property in the Register of 1920, leaves a total of $171, 1,696,05O for real property.
 Upon the basis of the debt as ir existed on February 2S, 1921, this to over ' per cent. of the valuation of real property in the City of Bridgeport, and there is in reality an underlying lien on every piece of real estate in the City of that amount.
 This lien, think, is equivalent to a first mortgage on unencumbered real estate and makes every first mortgage in reality a second mort gage. It is, of course, probable that if any such action were taken in an American municipality, that the city property held by it as a corporation would first be sold to satisfy the debt, and as long as Bridgeport continues a. going concern, it will have in it's possession, if not a1ienated for some reason or other, salable properties which would reduce the amount which would be levied against pro- perty owners. However, such a, con- tingency is very remote and it is only referred to in order to empha- size the point that the property of taxpayers is individually liable for the payment of debts created by their city officials should the debt not be paid.
 There is no established danger line for the creation of debt in munici- pa1ities. While the debt limit for Bridgeport is 5 per cent. of the Grand List, it is 10 per cent of the taxable realty, less the debt of self sustaining improvements, in New York State.
 Illinois, Iowa and Maine cities are limited to 5 per cent. while Indiana cities are limited to per cent
 In dealing with the debt of muni- been rached when the total amount required annually to amortize the debt and to pay the interest aggre.