The people's voice., 1959-04-24

| Inc AUDITORS pointed OUT JnaC eX
cept for the work on road contracts
all recording is on receipt and ex
penditure basis; that is the money
is spent without prior encumbering
or obligating. In the instance of con-
tracts the money is set aside as the
contracts are let. The opinion is that
this method is an antiquated method
of recording and places the Commits
sion at a considerable disadvantage.
APPRAISALS
One of the most expensive phases
of highway building involves the pur-
chasing of rights-of-way. In reaching
the final decision to pay a given
amount, considerable weight is placed
on the appraisals that are made on
each property. In many instances in
dependent appraisers have been called
in to appraise property before its
purchase and the result has been, so
far as observers are concerned, to
present rather confused picture.
First of all it appears that there
is no standard, fixed method of ap-
praisal, to which appraisers must
abide.
Secondly, there seems to be no def
mite relationship between the value
of the property involved and the value
of the appraisal. For instance, after
observing the appraisal method for
a considerable length of time the
auditors came to the conclusion that
the appraisers have been quite gen.
erous with the taxpayers money.
In one case alone there was a diff
ference in evaluation between two
appraisers in the sum of $143,000. A |
recapitulation of the figures involved |
show that the lower figure was more
nearly realistic, although the actual
figure granted was much nearer the
nigh estimate.
Many times the appraisers fail to
AXE into consideration insurance COW
erage and property taxes paid by the
owners. For instance prop
erty that was appraised at an average
value of 100000 is assessed for only
$4,000. Property for which the state
,aid nearly $150,00O, for about 1919
# the land paid property taxes of
My $1,700 on the entire piece of
Insurance coverage on i'm
appraised at about $780,
100 was for only $4,000. Another
iece appraised at about $4,000
verage paid property taxes of only
1877.
1t has been suggested by the
auditors that one of the methods
used by appraisers is seldom on an
actual basis and they have sug-
gested that the appraisers should
request property owners tax re-
turns or financial statements re-
flecting income so that values can !;
be computed on a factual basis. I
1t is also suggested that deprecia- O
on rate and property ages should be .
inform for each property among t
opraisors. v
This lack of uniformity in methods s
appraisals result in some rather N
diculous variance in appraisals. For W
stance, it has been found that the
lriance between appraisers is as :,
uch as from $4,000 to $50, 1000 on n
small takings. 1t is g
,vious that this method of apprais- g
G needs a definite reconsideration W
ID the standards for appraisers 81
ould be set up to a definite mini d.
um. se
fC
EXPENSE II
The determinations of the Mon A
ma State Highway Commission re- is
riding its overhead expenditures by
e erroneous and computation by
2 auditors reveal that administra- ~
e fund expenditures according to ~
cir determination for the three e.,
ar period of 1856, 1857 and 1858 WI WI
ceed the Commissions determina- -,
ms by the sums of $323,068.10, ~ ~
32,117.73 and 8,395.3O re- W W
~ ~
for the year ended in e. e."
he 80, 1868, indicated that the ad- -
fund expenditures were ~;
hin less than $17,500 of exceed pii
the 80 limitation required by
tute. LII