ECONOMIC SURVEYS OF COUNTY HIGHWAY IMPROVEMENT. '71 



rienced the benefit of the roads for 10 years at a low financial outlay- 

 represented by payments of interest, and then when the great con- 

 trast between the old conditions and the new will have passed out of 

 their minds they will suddenly be called upon to assume an in- 

 creased financial burden in order to provide funds for the retirement 

 of the principal. 



The actual tax rate levied for interest on bonds in 1914 in Beat 1, 

 which includes Meridian, was 1.5 mills and in Beat 5, 2.9 mdls. In 

 1915 these rates had increased to 1.8 mills for Beat 1 and 3.4 mills for 

 Beat 5, based upon the 1915 valuation of $12,874,856 in Beat 1 and 

 $864,010 in Beat 5. If the bonds had been issued so as to have the 

 payments begin the sixth year and continue to the twenty-fifth year, 

 inclusive, the rate necessary to meet both interest and principal of 

 $450,000 in Beat 1 would have been 2.53 mills, based on the 1915 

 valuation, or 0.88 mill more than the average of the rates actually 

 levied for those two years. In Beat 5 the rate necessary to retire 

 the bond issue on the same terms would average 4.28 mills, or 1.18 

 mills higher than the rate actually levied in 1915. Thus it appears 

 that with tax rates almost as great as wojild be necessary under the 

 5-25 year plan the county is only succeeding in meeting interest 

 charges. 



It would be well if counties could so arrange their financial meas- 

 ures and so time the meeting of their obligations as to make the bur- 

 den comparatively light at the very outset, thus giving the people a 

 chance to develop their resources through the improvement of the 

 roads. To do this the cost burden should be distributed so equitably 

 over a period of years that it will avoid the two extremes of excessive 

 tax levies on the one hand to pay off the debt too quickly, and the 

 extension on the other hand of the debt beyond the life of the utility 

 in order to obtain a low tax rate. An examination of the bond 

 issue indicates that if the coxm.ty had adopted the 5-25 year deferred 

 serial nfethod the total payments would be $65,357 less than they 

 will be under the method actually adopted, if no sinking fund is 

 established. As against this large difference it should be stated that 

 the taxpayers are having the use of the money which they would 

 have paid out if they had elected to retire the bonds more expedi- 

 tiously. It is therefore a question as to whether this convenience is 

 worth the price. 



Taxation in the county does not differ materially from the rates in 

 other localities, as in 1911 the total for all purposes, including the 

 State tax, was 15.4 mills on the dollar. In addition to this property 

 tax there is a commutation tax of $2 for road purposes and a poll tax 

 of $2 for schools. In 1915 the average levy was 16.6 mills, of which 

 the road-bonds tax comprised an average of about 1.6 mills and pro- 

 duced about 9.4 per cent of the revenue; the tax for maintenance 



