Perth Amboy evening news., 1922-10-03
DEBT LIMIT CAN
/ Be EXCEEDED
So Says City Attorney Leo
GoIdberger in New School
Opinion
6 PER CENT. FOR SCHOOLS
City Can Also Issue I Per
Cent. Improvement Bonds
Attorney Says

1t would appear from City Attor-
ney Leo Goldberger's opinion on the
matter, submitted to the aldermen
last night, that the city can exceed
the per cent. debt limit in the case
of bond issues for school purposes.
1t is mandatory for the aldermen
to issue school bonds to the extent
of per cent, the city attorney says,
and the city may issue addi-
tional bonds to the extent OF per
cent. upon the request of the School
Estimate Board and with the ap-
proval of the council.
"The bonds authorized for the ad-
ditional per cent. may be Legally
sold, even though the Z per cent
debt limit is exceeded" the opinion
declares.
The city may iss1e bonds to the
extent of per cent. for improve
ments and per cent. for school pur-
poses, the opinion points out, the
first per cent for schools being
mandatory and the second per
cent optional with the Board OF
Aldermen. II this is done. the opin-
ion continues, other improvements
will have to be deferred until the
city's debt limit gets back below
per cent.
The city attorneys opinion in full
i0 sept. 20, 1922.
'Tn Re: Debt Limit Applicable to
School Bonds.
Authority to Issue If Exceeds Debt
Limit.
ITO the Council of the City of Perth
Anboy:
st have carefully gone into this
matter and have also considered
the opinions of the attorney general
submitted to the state commissioner
of education, and have come to the
conclusion that the limit contained
in the Pearson bond act, to wit,
seven per cent, applies only to
bonds issued under the authority of
that act, and can have no bearing
on bonds issued under the authority
of an entirely different act, to wit:
the school act.
"To sum UP the matter and to
make it clear to your board without
going into legal technicalities. let
me say that,
81. 1t becomes mandatory upon
your board to issue school bonds 10
the extent of per cent upon the
filing of the certificate with your
board by the Board of School Essi-
mate.
20. The city may issue bonds or
become indebted to the extent of z
per cent upon the average tax rata
bles for the preceding three years.
"3. Upon the approval of the
council expressed by resolution. of
the report made by the Board of
School Estimate shown by its certi-
ficate filed with your board, addi-
tional bonds may be issued to the
extent of per cent.
"a. The bonds authorized for the
additional per cent may be legally
sold, wen though the per cent
debt limit is exceeded.
I'll sum and substance mean
to say that the city may issue bonds
to the extent of per cent for i'm
provements and per cent for
school purposes; the first per cent
for schools is mandatory, the Sec
ond 9 per cent is optional with your
board. OF course, if this is done,
other Improvements will have to be
deferred until your debt limit gets
back below z per cent.
'It must be understood that the
percentage of school bonds is based
upon the valuations of the real and
personal property of the preceding
year. whereas. the per cent debt
limit is based upon the average val
uation Of the real property only FOR
the last preceding three years.
Respectfully submitted.
LEO GOLDBERGER.
City Attorney