The Birmingham age-herald., 1924-03-16
FIND CITY ABLE TO ISSUE BONDS
 FOR PROJECTS
Data Compiled By Ex- perts To Be Submitted
 To Mass Meeting.
DECISION COMES LATER
 ON SUBJECTS OF ISSUE
Subcommittee Favored Library, Auditorium, Fire Department
 And Schools

One of Birmingham's most pressing problems in recent weeks has been the question of issuing additional bonds for schools, library and other purposes. The subject was brought to the foreground by the report of . special committee of IT prominent citizens, of which Oscar Wells was chairman. This committee made certain facts public and proposed a public mass meeting to decide on the amount and purpose for which bonds should be asked.
 In view of the widespread interest The Age-Herald publishes today the de- tails in connection with the proposition. Following the report of the citizens committee, the public school author ities have compiled the following data showing Birmingham's financial ability to issue additional bonds:
 Summary For Schools
 Present assessed value on which levy is made, and on which all calculations in this table are based, $14S,O00, 900.
 In addition to providing for the i'm terest on and retirement at maturity of all present outstanding bonds ($10,- ABS, ,500) the present levy G mills), will provide for the interest on and retire. ment at maturity of $750, 900 in bonds.
 One mill on the present assessed val uation equals $148,000.
 One-half mill on the present assessed valuation equals $74,000.
 Amount necessary to invest annually at per cent to provide for retirement of $1,OO0,O0O of 30-year bonds at ma turity, $15,052. Annual interest on $I, ,OO0, 600 bonds, $50,00O. Annual cost of $1,OOO,O 600 bonds, $65, 5,052.
 One mill levy ($148,O00) will provide for interest and retirement of additional bonds in the amount of $2,275, 900. Ad- ditional bonds issuable on present levy, $76O,OO0. Total bonds issuable with a 6 min levy (present 5 plus D, $S,O25.- 900.
 One and one-half mill levy ($222 0O0), will provide for interest and retirement of additional bonds in the amount of $3.412, 800. Additional bonds issuable on present levy, $750,00O. Total bonds issnable with 61a mill levy (present 5 plus 11a) ,$4,162.5Oo
 The following figures are given to show the amount of additional bonds issuable each succeeding year, based on an annual average increase of $6OOO,- 900 in\assessed valuations which has been the average for the past F years. A 6-mill levy (present levy of plus 1 additionaD, will produce $S6,OOO per year, or sufficient revenue to pro- vide for interest on and retirement or an additional issue of $5b3s40U-
 A 015-mill levy tpresent levy of 6 mills plus 11a additionall, will produce $3O, 900 per year, or sufficient revenue IL sx-ka nV1 and FAfIFA~ ment of an additional issue of $697, ,SOO.
 Assuming that the assessed valuation will show an annual increase of $6OO0,O00:
 The present levy of 5 mills for the sinking fund will provide sufficient revenue to pay interest on and retire at maturity all present outstanding bonds, and an additional issue of be- tween 5000, 900 and $3,0O0,OO0.
 One additional mill Ca total Of U millg), for the sinking fund will pro- vide sufficient revenue to pay interest on and retire all present outstanding bonds, and an additional issue Of $6,N)O,OO0.
 One and one-hnf mills additional Ca total of 6k mills), for the sinking fund will provide sufficient revenue to pay interest on and retire all present out standing bonds, and an additional is- sue of $7,OO0,00O.
 Special Committee Report
 The committee of IT in its formal report made public the following data {:
 Annual revenues for all current pur- noses have increased from $2,O9S,0OO in 1917 to S4,459, 900 in 1923. The board of education receipts increased from S525, ,OOO in 1917 to $1,55S,O 900 in 1923.
 Whenever an individual or cOrpor- ation experiences a great increase iD income. it is most difficult to avoid Q greater proportionate increase in ex- nenditures. Every banker is familiar with innumerable cases of financial dif- faculties resulting from too rapid ex- pansion.
 Birmingham's fiscal structure is now suffering from financial strains of the period of 1895 to 1920, and doing with. out public improvements to take care of deficiencies passed on from that period. The city is growing rapidly and must meet unusual demands, due to expan- sion, as well as keep pace with modern ideas in public functions. It must com pete with older and wealthier cities, which are over their growing pains.
 The future of the city will be greatly affected by the basic financial readjust- ment that should be made at this time, in connection with future financing. Birmingham's financial program must be progressive. but sound.
 Analysis City Bond Capacity
 With the above preface, we come to our findings on the city's present ca pacity:
 1. To support and retire at maturity bonds already issued.
 2. To support and retire at maturity bonds yet to be issued.
 5. Amount of bonds that can be properly and safely issued.
 Maximum tax levy, state, county ana city, authorized by law, all of which have been voted from time to time, ex- cept 80 per hundred is S3.6O per hundred.
 State levy ....... .61
 County levy ...... SD
 - S1.50 City levy for in-
 terest and sink
 ing fund ...... .5O
 City levy for gen.
 eral fund Pc. 50
 City levy for school
 fund ..,..'.'..' 'OV
 Levy collected by
 county for city
 schools on city
 property ...... .3O Sl.SU Ho.5u
 Margin that can be authorized in election by the people is 50 cents per S1O0.