Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1924-10-17
Letters From
the People

Replying to your defense of the
$50, 900 bond issue. This is no place
for a legal discussion so I will 5mp-
ly quote the pertinent section of the
Constitution of Georgia: "The debt
hereinafter incurred by any-md-
nicipality-of this State shall not
exceed seven per centum Of the as
sessed value of all the taxable pro-
perty therein, and no such-nuni-
cipality shall incur any new debt
except for temporary loan to sup
ply casual deficiencies of revenue"
Now if you can find out the real
Indebtedness of the city it will De
a very simple matter to determine
how many bonds can legally be
issued. | will mention one item that
you can include in your calculat ons,
and that is a shortage of fifty odd
thousand dollars in the sinking
fund. This sinking fund is for
the purpose of paying off at maturi
ty present outstanding bonds. YoI
will find another very interesting
item when you enquire about the
sO-caIled floating Indebtedness.
Some of the men urging this bond
issue take at least two positions IN
regard to the floating Indebtedness.
viz: First, that the debt is illegal
and therefore cannot be counted as
debt against the city for the pur-
pose of this bond issue. Second,
that it is an honest debt and must
be paid. This hits the tax payer
going and coming and IS the verie8t
subterfuge.
Unless l miss my guess the citi-
zens of this town are tired of having
value of their property arbitrarily
raised simply because the tax rate
has been lacked up to the limit
of the law. Your suggestion that
property values be raised will in my
opinion fall on deaf ears. However
clever and ingenious your argument
may be as to raising property values
and lowering tax rates for the pur.
pose of getting bond issue within
the law, the stern fact remains that
the more money you borrow the
greater will be the demands of the
tax collector and the same tax pay
ers will have to find this addit onal
money.
As to the upkeep of the wood
block pavement: 1t is my opinion
that the estimate cost Of upkeep is
exaggerated. If some official with
authority will furnish an itemized
statement of the cost of this up-
keep for two or three years past
! think the cost will not appear as
great as you would have us believe
If the statement appears very large
think l can find an Independent
contractor who will take this worry
off the present administration for
fair consideration.
As to bonds: You overlook or
: passover withouA comment On ele-
mentary principle. That is. bonds
should not be issued to run be, and
the life or usefulness of the thing
bonded. For instance, if bonds are
to run for 80 years the pavement
should last for minimum of 30
years. During the life of the issue
the upkeep is proper charge again
st current expense and not capital
charge. 1t is hardly possible that
any man of Council during The last
ten years could have failed to know
this. Your theory leads right back
to the present trouble. Current
expenses have been paid with CAPT,
tai funds. / grant you that on at
least two occasions capital charges
have been paid out of current funds.
One is just as bad as the other.
The two istances mentioned are the
Playground and Souther Field.
Carelessness and Indifference in
the handling of public funds will
always cause a deficit The law
governing the handling of these
funds is very clear and very simple
Funds raised for one purpose must
never be used for another. There
must be no mingling of funds.
have been informed that it is
the purpose of the authorities in
the event this issue is approved moi
to use all of the funds for street
improvement as required under The
ordinance but to divert a part of the
| issue to the payment of floating in,
debtedness and other current expen
SEES on the theory that the Interest
rate is less. If this is true The
voters will do the officials a favor
by failing to authorize the issue
If these funds should be diverted il
any such manner every one of In
offials would be guilty of malp a.
tice in office.
This is the third attempt durins
The last three years to raise add
tional sums of money from the tai
payers. First there was an affor
to change the form of government
for the purpose of raising more
revenue to be paid out free from III,
present legal limitations. Second
your paper encouraged the issue o.
100000 or S150,O0O to erect &
school building. Third, the present
$50 600 issue. WHY so persistenr