The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-01-26
The gross permanent bonded debt of the

th6 repair n extension mains, OF
which $422,00 was issued before the new
supply, and s1s5, 600 since its adoption.
The water debt, the total OF which is
$7,757,0 900. may be classified as amounting
to S,622, 900 of old debt and 81, 900 of.
new debt. OF this moun the interest
ON S, 1872, 600 and the sinking fund on &c.
$4,000 Is paid out of the net earnings of
the Water Department OF the water
debt nd sinking fund or other provision
has been made for the payment of the
principal of. s750, 900 of old bonds when
they shall mature. These bonds. however,
have such a high rate Of interest that it
Id probable they may Be refunded when
they mature at a less charge for interest
and sinking fund account than the pres
ent charge for interest alone. Of this
lot $100 600 mature the current year and
will be refunded. ~ M 's
AS the receipts of the Water Department
Increase itris expected that THE earnings
will take care of the principal and in
terest of the entire water debt, both old
and new. The increase of water rev
enues in 1896 was nearly $50, 0G0 over 1896,
and would have been sufficient to meet
all the charges of that year, but for a
large expenditure for permanent work
en- connections with the main line, as
the amount paid by the city for interest
and sinking FUND account on water bonds
in 1896 was but 25,210. The payment of
2,00O,0 900 additional bonds to the East
Jersey Water Company in 1900 will in
crease the interest and sinking fund ac-
count on water bonds to the extent of
$d2o, 900 per year, but the present rate of
increase in water revenues would seem
to indicate that this increased expendi-
ture may be met by the increased earn
ings.
The interest and sinking fund charges
on the tax arrearage bonds are fully met
by the collection Of tax arrears on real
estates The interest on the market bonds
is paid from market receipts, and the
balance of net earnings from that source
Is carried to a sinking fund account for
the liquidation of the principal. The in
terst and sinking fund, ON $14S, 600 of sewer
bonds, which mature this year, is also
taken care Of by small collections from
ever assessments a small part of these
ppnQs-probably $35, 000EWi11 have to be re-
funded, but there is q sufficient sum due
to- meet them.
II . VII I'll l oda sbeeseens that the interest
on $s,4f3,080 of the city debt and the sink
Iig I'M charges on an amount nearly as
large are met by feyenues other Than
taxation, leaving the interest and sink
Ing fund charges on only about 40 per
cent Of the city debt to be taken care
of in the tax levy. BaHss Nsg
The temporary loan bonds issued nv the
city are issued against unpaid taxes of
The last two years not covered by tax
arrearage bonds, and unpaid paving and
W assessments. The paving bonds
cannot exceed three-fourths OF the
amount of unpaid paving assessments
lhey may be issued either as permanent
or temporary bonds, but the temporaries
are thoughtsto be best, as continual nav
ments can be made as as paving assess
ments fall due These bonds not only rep
resent assets more than sufficient for
their payment, but the city, by borrow
ing on temporary loans, at low rates of
interest, is a gamer in interest account.
The interest derived from this source in
1886 exceeded the interest on the tempo
rafy loans by about $4,000, which sum
Was transferred to the contingent fund
for the general uses of the7eity.
This excellent situation respecting its
Indebtedness is the reason for the high
standing which the credit of the city has
obtained In g. financial circles. Among
financial CONCERNS the water, debt Of "a
city, which own its own water plant. is
not counted as al obligation, and the
debt of Newark, con1pareagw with its taxa-
BILE valuation, IS therefore rated as very
low. The gross debt of this city for
other purposes Ii a water supply is
IS, Ole, 600, and after deddcting the sinking
fund accretions for the paymant1of the
bonds representing this part of the city
debt, the net Indebtedness is less than 4
per cent. Of the taxable valuation con-
dition far different from tina of most
MUNICIPALITIES in this and, gother Cta+or a