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Newspaper
Elgin Echo
Location
Elgin, Iowa, United States of America
Date
Jul 21, 1927
Page
5
Iowa county attorneys issue views on bonding to pay for hard surfacing primary roads. They explain funds from federal aid gas and license taxes would cover bonds and maintenance, with no local property tax increase. Bonds issued in series, funded by state primary road funds, would not raise county taxes.
The article explains three road systems: State Primary Roads funded by the state, auto and gas taxes plus federal money. County Roads funded by county property tax and part of state gas tax. Township Roads funded by township property tax and a share of state gas tax. It notes that county and township taxes may be limited by law, with increases requiring new legislation and optional local action.
The letter argues bonds for Fayette county amount to about 2 percent of property value, totaling $20 for a $1,050 home and $1.20 per acre at $60. It notes 15 years to pay, claims annual costs would be small, and links tax policy to auto and gas taxes in shaping whether property taxes are needed for bonds.
The piece argues against pay as you go road paving, listing six practical objections. It notes state law prevents annual $120,000 draws, that small paid jobs cost more per mile, bid competition is weak, and that delaying paving risks continued travel issues between towns. It concludes funding via bonds suits public works better than accumulating funds with taxes.
Fayette County asked if skipping bond votes would let state aid accumulate for future repayment and whether legislature could repeal gas and auto tax to force property taxes. The Iowa State Highway Commission replies that funds would be set aside only to pay interest and principal if bonds are issued, and that any move to remove the primary road fund would be challenged as unconstitutional. legislators from voting counties would unlikely support such a measure. The letter from HR Jones, Auditor, dated July 1, 1927, explains the mechanics and legal uncertainties surrounding bond issuance and fund use.
A county advisory statement argues that approving bonds will keep the 1/77 state road fund share in Fayette County to cover bond interest and principal, with about $60,000 yearly for maintenance. It contends taxes won’t fall regardless, but bond approval would direct gas and auto taxes to Fayette for several years, rather than other counties.
A discussion questions if voting for paying bonds would force a county to levy property tax on town and county property. Most lawyers doubt a repeal of the gas and auto tax could be legally used to leave bonds unpaid. Arguments cite honor, general popular support for the gas and auto tax, and risks to State credit.
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