40 STATION BULLETIN 346 



taxes to be levied for state and county purposes is not ordinarily 

 available at the time of the town meeting and therefore is an estimate. 

 The following is the only provision of law directly concerned 

 with the county budget : 



The county commissioners shall send to the secretary of state, 

 prior to the fourth Wednesday of each biennial session of the legis- 

 lature, a statement of the condition of the county treasury on the 

 preceding December 31, accompanied by their recommendation of 

 the sums necessary to be raised for the county in each of the two 

 years next ensuing, stating therein in detail the objects for which the 

 money is required; and the secretary of state shall deliver the same 

 to the clerk of the convention upon request. 29 



However, the director of the Municipal Accounting Division now re- 

 (|uires a certified copy of the county budget consisting of estimates 

 of receipts as well as of expenditures. The county treasurer then 

 submits his warrant to the selectmen of the several towns, apportion- 

 ing the net appropriations on the basis of "equalized valuation." The 

 town meeting has no direct control over county appropriations, and, 

 in fact, it is given no opportunity to accept or reject them. Towns 

 not having paid the county tax by December 7 are charged interest 

 on the amount then unpaid at the rate of 10 percent per year from 

 that datc.^o 



DEBT LIMITS AND FINANCIAL CONDITION 



Towns and cities have power to borrow in anticipation of taxes. 

 These loans must be payable within one year and must be paid from 

 the ta.xes of the municipal year in which they are incurred. -^^ The 

 purpose of this type of loan is to meet current expenses until the bulk 

 of tax money becomes available. Another type of temporary loan is 

 classed as "emergency borrowing." This type of borrowing is per- 

 mitted in cases where money belonging to the town or city is lost or 

 rendered unavailable through default or suspension of payment.^- 

 Such loans must be made payable not later than December 10 follow- 

 ing their date of issue, but may then be renewed. 



The "Municipal Bonds Statute"-'-' was passed by the state legis- 

 lature in 1917. The act applies to counties and all municipalities, in- 

 cluding cities, towns, school districts, and precincts. The act pro- 

 hibited the further establishment of sinking funds as a means of ex- 

 tinguishing debts. Municipalities which had already established such 

 funds were permitted to continue them, but were required to make 

 such annual contributions as necessary to extinguish the debt at ma- 

 turity. All other municipalities were rec[uired to refund outstanding 

 indebtedness by the issue of serial bonds. 



At the present time all municipalities and counties are required 

 to provide for the payment of all debts, except temporary loans in an- 



2» Revised Laws, 1941, Chapter 44, Section 13. 

 ™ Revised Laws, 1941, Chapter 48, Section 10. 

 '■ Revised Laws, 1941, Chapter 51, Section 80. 

 ^ Revised Laws, 1941, Chapter 51, Section 12. 

 ^Revised Laws, 1941, Chapter 72. 



