Perth Amboy evening news., 1923-03-17
MOVE FOR new SCHOOL
AGAIN BEING PUSHED
(Continued from page -

balance constructed at a later date.
The section of the school it is pro-
posed to build with the $250,000 ap-
will be three stories high,
containing twenty-five rooms on two
floors, while the top floor will be left
unfinished for the time being. The
tCp floor when completed will have
rine rooms. There will also be a
change in the heating system from
that designed in the original plans.
The unit which can be added at any
time will contain a total of twenty
one rooms. The auditorium will be
built with the first unit.
The opinion of Attorney General
McCran to State Commissioner of
Municipal Accounts Darby on the
question of issuing bonds for school
purposes reads as follows:
Trenton, n. j., March 13, 1928.
walter r. Derby, Esq.
Commissioner of Municipal Accts.
Dear Sir:
II have considered the subject
matter of your inquiry of March 9Th
inst. and one of Mr.. c. ]. Strahan,
assistant commissioner of education
in regard to the same matter.
1.-The question under consideration
is whether a municipality may pass
an ordinance or resolution, prior to
the passage of which supplemental
debt statement must be filed, If it
appears from such supplemental
debt statement that the percentage
of the net debt of a municipality
other than O county as computed by
deducting Che deductions, as sci
forth in subdivision 3 of section IL,
of the Bond Act, as amended py
Chapter 240 of the Laws of 1917,
from the gross debt of the munich
pality, as set forth in subdivision
A of said section, If such percent
age exceeds seven per centum OF
the net debt of the municipality.
The percentage of the net debt,
after deductions from gross indebt-
edness, consists Of the average OF
the next three preceding assessed
valuations of the taxable real prop
erty of the municipality, including
improvements.
"The gross Indebtedness, among
other things, provides for the in
clusion therein of notes, bonds or
certificates of the municipality issued
for school purposes other than for
the current expenses of schools, but
not including the Indebtedness OF d
school district constituting a separ-
ate corporation. The municipality is
authorized to deduct for school pur-
poses the net Indebtedness incurred
or authorized to an amount not ex-
ceeding three per centum of the ave-
rage assessed valuation for the next
three preceding years of the taxable
real property.
The net debt, therefore, of a.
is arrived at by de-
Quoting from the gross Indebtedness,
which includes notes, bonds or GER
tificates of the municipality issued
for school purposes, other than that
for current expenses of schools, to
an amount not exceeding three per
centum of the average assessed val
uation of the taxable real property,
including improvements, and the
borrowing power of the municipality
is limited to seven per centum OF
the net debt, with certain exceptions
not pertinent to the question Nnder
consideration.
Section rs of the school law, as
last amended by Chapter 2S4 of the
laws of 1921, in subdivision t8)
thereof, provides that no amount in
taxable valuation of the real and
personal property shall be appro-
priated only with the concurrence
and consent of the governing body
by its resolutions duly
passed, and the total amount OF
bonds for such purposes, including
bonds Heretofore issued for the
purposes named III this section and
not redeemed, shall not exceed at
any one time sum equal to six per
centum of the taxable valuation OF
the real and personal property In
such district. This provision, with
the exception of the limitation as to
borrowing up to six per cent with
the consent<of the municipality; that
is, as to the amount of that per-
centage, is a mere re-enactment OF
the provision al contained in school
law of 1908, and, therefore, has no
force and effect as new legislation as
to the borrowing capacity up TO
three percentum.
From the foregoing excerpts as
70 the bonding power of municlpan-
ties as authorized by ordinance or
it will pc observed that as
only the percentage on the real val
uations may be deducted from the
gross indebtedness OF the munich
pality, including The gross endebt-
edness, for school purposes, there
fore, if the municipality should or
dain or resolve to authorize the is
suance of obligations in the nature
of notes and bonds for schol pur-
poses based upon the percentage OF
Valuation of both the real and per-
sonal property as authorized in the
school IhWs where it exceeds the 3
per certum on the valuation of the
realty, that the net debt thereby ar
rived at as provided in the bond act
would, in some cases, have the erect
of causing the municipality to ex-
ceed the authorization of the bond
q ct by creating a net debt above
seven per centum of the real val
uations for the average as required
by the statute.
"I am of the opinion, therefore,
that the municipality may not or
dain or resolve to issue financial
for school purposes in
cases where it would operate to
cause a municipality to exceed the
ret debt limitation required by the
statute. 1t is true that the school
law permits borrowing by munich
pality for school purposes on the
warrants of the Board of Education
and the board of estimate where
such limit is not exceeded as to the
pei centage based upon a valuation
of both the realty and personality
but L am unable to conclude that the
as to municipalities may
tie exceeded by this provision in the
school law, and the result, therefore,
is that, in my opinion. the obligation
iS nor cast 1Inon the governing body
10 ordain the issuance of bonds con-
trary to the bond act for school pur-
poses, even though the board of es-