Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-09
LOWERING Of BOND
RATIO IS PROPOSED
Montgomery Federation to
Get Proposal of Finance
Group Tonight.
By a star Correspondent Of The Star.

BY a Stan Correspondent OF Inc quar-
BETHESDA, Nd. November 9.-Fu-
ture bond issues for Montgomery Coun-
ty should bear lower ratio to the tax
able basis of the county. than at pres
ent. a resolution adopted by the Com
mittee on Public Finance and Budget
of the Montgomery County Civic Fed
Grafton recommends. This resolution
will be presented to the meeting OF the
Federation here tonight for adoption.
That larger percentage OF the
moneys from each tax levy should
gradually be made available for devel-
oping the operating and maintenance
phases of the county government Is
also recommended in the resolution.
The county now has built or provided
for practically all of the main highway
improvement projects and the physical
framework of a modern school plant.
the committee will report Because OF
this it is recommended that the amount
! of bonds to be authorized in future be
reduced and that whatever improve
mentS to roads and additions to schools
are needed be paid for as much as pos
Sible out of the current tax levy money.
This should be done, the resolution
which will be introduced says, without
violating the standards of Saftey here
tofore adopted by the federation, re-
stricting the life of bond issues and re-
quiring substantially equal annual pay
mentS upon the principal of the bonds.
Discussing the committees report to-
day, Frederic P. Lee, chairman, said
that the groups opinion was that suf-
ficient arterial highways and school
buildings had already been constructed
or provided for by the last session of
the State Legislature to allow the
county to develop for period of years.
Instead of increasing each year the per-
centage of the tax money which goes
to pay the interest and principal OIL
bonds, the committee was now of the
opinion that more of the tax money
should go for administration of the
county government, paying better SAL
aries to teachers, expanding police and
fire protection. developing health and
social welfare activities, etc.
School operating expenses, although
showing an increase from $178,000 in
1920 to over $498, 900 in 1881. the re-
port shows, have always been within 2
or 3 per cent of being 40 per cent of
the total expenditures from the tax
levy. AS this 40 per cent for school
operation has remained essentially con-
slant for the past decade, it is reason
ably safe to assume th/t this will be
the minimum required in the levies for
the next 10 years.
Unlike schools. the report shows, the
percentage of the tax levy going Cor
bond commitments shows a large in
crease, jumping from less than 10 per
cent OF the 1920 levy TO over 80 per cent
OF the 1881 levy, in spite of increase in
taxable basis of over 100 per cent during
the same period.
There is no necessity for this rate
to be maintained in the next decade. the
report says, as in the past 10 years we
have changed from a wholly rural
county to one in which two-thirds of
the population is suburban in character.
We have in the suburban county almost
completed the building of a modern
school plant adequate for present school
population needs, and have practically
completed the building of all arterial
highways In the suburban county and
paved an extensive system of main
highways in the rural sections.
In consequence of these physical de-
velopmentS, the framework of the
suburban county has been completed
the report states.
Signing the report are Mr.. Lee. chair
man; W. B. Armstrong, Robert E.
Bondy, L. M. Christie, John A. Dick
inson. John A. P. Farnham, Charles w.
Hopkins, c. A. Korbly, E. Brooke Lee
and Frank Severance.