The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-10-27

plans and estimates of the proposed
new plant.
! Now,win the present owners sell their
/ plant for a sum less the difference in
| value between the new and the present
| plant? The difference between the two
| plants Is as follows: The new plant
/ has 500 horse power, the old 405 horse
| power, both have about the same pump
capacity; the new plant has 81 miles
| pipe, the old, Al miles. The new plant
viii have two miles of 20 and "A inch
pipe, the old has none so large. The new
| plant has 523 hydrants, the old has 81
/ hydrants. The difference in capacity
| of boilers is 80 horse power, seven miles
| Of pipe, 2OS hydrants, and the difference
1 between 20 and "a inch pipe and IS inch
pipe for the first two miles out from
pumping station.
This is one Of the problems to be soIv-
ed after voting bonds. The difference
between the cost of the new plant and
value of the old should provide a sum
sufficient to give to all tax payers in
the remOtest parts Of the city the ad-
vantages of water service and fire pro-
lection.
The ways and means to provide for
the interest and final payment Of the
bonds is a matter of paramount import
ance and about which there will be
much conflict of opinion.
The committee gives some facts and
ventures some suggestions. The SAG, 900
OF bonds will run not to exceed twenty
years at a rate of interest not to ex-
coed per cent. The interest on the
bonds will be $22, 900 per annum. A
sinking fund for a term of twenty
years will be $50, 900 per annum Now
from statement made in court by
the water company, the receipts per
annum are SIS, 900; the operating ex-
penSes, $20, 900; balance above operating
expenses, $38, 900. Taking this as
probable present financial condition, we
will assume that the city will have on
requirement of the water works $3S, 900
net income from water users. This in
cludes $14, 500 paid in by the city
hydrants. There may be a question
about the continuance of this payment
by the city into the water works fund,
when the city owns it's own water plant;
but proper consideration will show
this to be the legal and only way of
direct taxation, to provide for the in
terest and sinking fund for the bonds.
Let US assume that the city still pays
into the water works fund for the pres
ent number of hydrants, and we have a
net income of $3S, 900. Now if the water
users are to get some immediate bene-
fit, the water rates should be reduced
20 per cent as demanded by our city
council of the water company. Such a
reduction will reduce the total receipts
to $4,000; deduct operating expenses
$40, 600, leaves $27 ,O00 a sum sufficient to
pay the interest on the bonds, $4,000
and also leaves a balance of $4,000 for
Improvement of the system.
Now, for a fund for the redemption
of the bonds, a tax of 8 mills will be
required. This will fall on all citizens
alike. All property in the city is en-
HANGED in value by reason of fire pro-
lection, and water privileges, therefore,
should be taxed to pay the construction
or purchase of the water works. and the
water users are doubly benefited by a
reduction in water rates, by reason of
the city's ownership of the water works
system.
Now, to sum up some of the advan-
tages to accrue from the city ownership,
based upon present estimates made on
present Obtainable facts and figures:
The water users will get a reduction of
20 per cent; a like reduction on what
the city pays will reduce its annual pay
ment from S14 800 to 81 800, and the city
will get all the additional hydrantS that
it needs for extension free of cost. It is
fairly within the range of probabilities
under the careful management of the
water works plant, with an increased
income from the growth of the city, that
both the interest and bonds can be paid
for from the earnings of the plant, even
at a reduction of 20 per cent from the
present rate, particularly if the bonds
are issued so as to make a part of them
payable every year, after the second
year from date, and while we are pay
ing the bonds, we are paying for piece
of property which will be of increasing
benefit to the city.
Among other accruing advantages
will be the release of our city admin
istration from all annoying friction with
the water works company, and the city
authorities will be at liberty to make
whatever extensions or improvements
they desire, and will be in a position to