CHAPTER VII 

 PARK FINANCING 



Park financing falls into two distinct divisions: (i) the acquisition and 

 permanent improvement of properties; (2) operation and maintenance. 



I. THE ACQUISITION AND PERMANENT IMPROVEMENT OF PROPERTIES 



The acquisition and permanent improvement of properties may be 

 financed in one or more of the following ways: 



1. Use of current funds of the park and recreation department or by 

 direct appropriation of a municipal or county government. 



2. Proceeds from the sale of bonds secured by general taxation. 



3. Proceeds from the sale of bonds secured by special assessments. 



4. A combination of the proceeds from the sale of bonds secured by 

 general taxation. 



5. Installment payments out of the net proceeds obtained from the 

 operation of the particular project itself. 



6. Proceeds from gifts, donations, devises and bequests. 



7. Acquisition of properties through use of the principle of excess con- 

 demnation or excess purchase. 



I. Acquisition and Improvement of Properties from Current Revenues. 



The "pay-as-you-go" policy has been practiced by some park depart- 

 ments through the country and in many park systems. Both the acquisition 

 and improvement of properties have been financed out of current revenues. 

 On the whole, however, this is an undesirable method of acquisition and 

 improvement of properties for the following reasons: 



(a) Because of the tendency to hold the general municipal tax rate 

 down to the lowest possible minimum practically every park department 

 throughout the entire country has insufficient funds for efficient operation 

 and maintenance and cannot afford to expend any of the meager income 

 for capital outlays either for the acquisition of properties or for improve- 

 ment. The most that departments can do, as a general rule, is to pay for 

 minor improvements out of current revenues. 



(b) Where properties are acquired either by direct payment of the 

 complete cost or by a system of deferred payments extending through a 

 period of years it usually results in these properties lying idle and unim- 

 proved for years and the people who pay for them get no benefit. 



(c) If a considerable percentage of current revenues is expended for 



