Morgan County Democrat. (McConnelsville, Ohio) 1886-1943, 1937-07-29

| for operating expenses within the
| ten mill limitation and levying 21I
mills outside the ten mill limitation.
I; The adoption of the proposal will
prevent the levy of more than 1.S
mills by the Budget Commission.
@. Will the tax rate in McCon-
nelsville be reduced by enactment CT
the refunding proposal?
/! A. Yes Instead of levy of
! four mills for debt service. ther,
will be levy of only 1.S mills for
debt; by releasing the mill and one
!! half which would go to the McCon-
nelsville General Fund, it will make
unnecessary the re-enactment of the
/ full two mill levy which now is the
/ sole source Of the towns operating
revenue and the tax rate of McCon-
nelsville can be reduced by approxi-
mately two mills next year.
@. II, this proposition is good
thing why has it not been done be-
fore? S3
"A. Municipalities have never had
authority to do this until the enact
ment OF House Bill 656 which is ef~
fectiye as an emergency measure
and which will expire on December
! 81, 1897.
q. Does the proposal increase
! taxes?
A. No. A maximum levy of 1.3
mills will be made by the Budget
| Commission to retire principal and
interest as it natures, and debt SER
vice charges will be reduced by 81
mills.
O.. Why is this special election
necessary?
A.. To take advantage sof the
emergency legislation and to make
such savings in taxes available as
are possible during the coming tax
year. The tax rate will be made up
by the County Budget Commission
in the month of August, 1897, and
it is therefore necessary that the
voters approve this measure before
the rate is made up, if they are to
take advantage of the savings which
are possible.
@. Is this refunding proposal
similar to the program of the Fed
eral Government of calling in bonds
and replacing them with bonds bear
ing lower rate of interest?
A. Yes. The Federal Govern
ment has refunded it's A a9o bonds
with bonds bearing interest at the
rate of from rs to 3A%. The
proposition is similar to the farmer
who replaced his bank mortgages,
bearing or 10 interest with land
bank mortgages bearing 40. Tho
towns business cannot be conduct
ed on different basis than the bust
ness of an individual is conducted,
and the adoption of this entire pro-
posal will put the financial affairs Of
McConnelsville on permanent busi-
ness basis.
@. Will the adoption of the pro-
pOsal provide additional funds for
local government services?
A. Yes, the proposal will release
some additional funds to the village
which are badly needed to help fl
nance the fire department, to provide
additional police service and many
other items for which funds are not
now available.
Q. Is the legislation adopted by
Council. to give effect to this pro-
gram, regular and correct?
A. The State Tax Commission Of
Ohio upon hearing of the towns Pc
tition and the evidence hereunder.
has formally approved the project
and established the maturities Of
the bonds and the only step remain
ing to give effect to this program is
the approval of the voters on Tues
day, August 3, 1887
Q. II the proposal is defeated,
will taxes be increased over the next
five years?
A. Yes
@. Why?
A. Because the Budget COM
mission must levy a tax outside Of
the ten mill limit sufficient to pay
the $10,500 in bonds due next year.
The four mills now levied produce
approximately $1,000 which must
apply to both principal and interest.
This sum will be sufficient and the
Budget Commission must levy at
least five more mills over the pres
.ent rate to pay the debt.
Q. Is this election an unusuaI
item of expense to the municipality?
A. No. The .entirAs cost of the
election will not exceedx$8 SIS and will
make possible an immediate reduc-
tlOn of taxes in the villa po