The weekly Ottumwa courier. [volume] (Ottumwa, Iowa) 1857-1872, 1871-11-02
WATER WORKS.

W.. b. LlTTLKTON,
Mayor of said City.
WATER WORKS.
As will be seen by the Mayors
Proclamation, the question of voting
for or against the city issuing bonds
to the amount of $40, 900 for the pur-
pose Of establishing water works, is
to be submitted to our citizens on next
Saturday. We think it would have
been better to have given q little
moro time to the consideration OF
this matter, but inasmuch as the
election has been called, at the date
mentioned, we propose to consider
the question and throw what light
we can upon the subject.
In voting upon this question,
should we all cast our votes ia the at.
firmative, it in no way binds the
Council to issue these bonds, nor
would the Council vote to issue them
unless a contract can be made favor
able to the interests of the city, and
one that will come entirely within our
means. From the best information
we can obtain, the necessary machin-
cry, engine house and four miles of
water mains will cost from $65, 900
to $4,000, all put up and in running
order This is based on machinery
necessary to supply city of IA, 900
inhabitants. The machinery, pipes,
&c, to supply city of 10000 inhab-
itants it is estimated would cost $780,
900.
The first question, always, when
you wish to purchase anything, is
how are you going to provide the
means to pay for it? And that is
the question to be considered in this
case. It's proposed, in this instance
to issue water bonds, running say,
80 years, and bearing 8 per cent. in
terest, and sell them either in the
east, where money. is plenty and seek
ing investment, or sell them TO par
ties who will furnish the necessa, y
machinery, mains, &c. 1t is reasoned,
aud as we conceive from good prem
ises, that, having. growing city of
1000 inhabitants, and having no
public debt, that our bonds would
sell at very advantageous rates in
the east, if not nearly reach par; and
that the proceeds of these bonds to.
gether with what might DO appro-
priated from the $4,000 Of general
taxes already levied for the year
1871, we might easily pay for the es-
Enlistment of water works.
The next question now is, having
issued the>bonds, how are we to pay
the interest on them, and pay the
bonds at maturity? Should we is.
sue $4,000 in bonds, the interest at 8
per cent would amount annually to
$4,000. 10 meet this we would have
a tax Of Q mills for sinking fund.
provided for under our charter,
which we can and do levy, annually,
to pay the interest and principal at
maturity. This tax on our present
assessed valuation s1,7OO,OoO, would
produce $4,000, or $4,000 less than
would be necessary to meet the first
years interest on $4,000 8 per cent.
bonds. This deficit would have to be
made up from the general fund untillt
was derived from some other source,
or until such time as the works
were In operation and the water
rents would meet the deficit Some
persons are imbued with the idea
that the City Council propose to levy
"a per cent. tax to pay Immediately
tor the erection ofwater works. This
idea is entirely erroneous, as the
Council cannot levy any more than
l2a mills tax for all purposes, in any |
one year, and for this special purpose |
no more than mills tax.
In the past ten years our popula-
ton has quadrupled, and the taxable
property, we presume, although we
now have no official data before us.
is at least three times as great as it
was in the year 1861. 1t is fair to
presume that in ten years, if We add
water works to our other convention
,es, such as churches, fine schools,
gas, &c, that our population will at
east be double what it Iow is; and
hat the taxable property would in
rease in the same relative proper
ion. Taking this as true, our tax
# mills would then be based on a
'aluation of S3,4OO,oOO, and this
would give us Sc, 800 for the sinking |
and, or 1920 more annually than :
7ould be required TO pay the interest
n the bonds issued.
We now have as far as practicable
hown You what water works will |
ost, and we now propose to see what e
on would gain by them. During t
10 last five years we have lost by t
res in the aggregate about $3.50, 900, {
hich ii we had had "a good supply a
water in stores and dwellings, in II
10 main part of town, and in by Il
ants accessible to hose or our steam b
gine, ii is safe and reasonable g
iculatlon to say, might halt have al
en- saved from the deyouriup eIe. "