The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-07-08
WATER BOND QUESTIONS.

VIII you kindly answer these questions
in The Herald regarding the proposed
bond issue:
FYrst-In case the proposed bond issue
by the city council IS successful, can the
funds thus raised be used legally TO wipe
of any Indebtedness incurred prior to
the issue OF said bonds2 In other words.
as near l can md out, by the time
these bonds are issued the city will be
overdrawn at the banks some SIS, 900.
Can the money realized from sale or
said bonds be used TO pay OFF above over
draft or any part thereon The propo-
sitiOn is being submitted TO the people,
that If the bonds are issued certain I'M
prOvementS will be made. such as the
reservoir on Thirteenth East, farmers
VIII be bought out who own land in Par
ley's canyon and certain improvements
made in our waterWorks system Most
of the above has been done; that is, sew
eral farmers have sold their land to the
city and got their pay; the reservoir con-
tract has been let, to be completed July
Is 1So0-by all means let US have it COM
Dleted-and l presume the contractors
have received several thousand dollars
on account, and other contracts have
been made for improving our water
works system. 1t Will take some thirty
days yet, if the bond deal goes through,
before the money will be available, and
l presume nearly ali the above improve
mentS Will be completed The question
is. Can the money be used to apply on
work done prior to issue of said bonds?
Second-Win it increase our water Sup
those we now have will hold more water
than we can get this season. including
al from Parley's? 1 am in fer increasing
our water supply, but cannot see how
we will get the desired relief as out
lined by the council up to date Let US
get in shape for Cottonwood, but is the
step outlined the proper one?
Third-WiH this $z50.000 bring in Cotton
wood? II not, can We borrow or bond
again TO bring it in?
Fourth-Are we up TO our bond limit?
If SO, how can we expect to get the Cot
tonwood into the city in the future?
TAXPAYER.
In regard to all Of these questions,
The Herald has sou"ht the opinions of
good lawyers. All of the men con-
suited are familiar with municipal law,
but since the opinions are only YER
bal. they did not wish their names
used.
In every opinion it is agreed that
there is grave doubt as to the legal
right of the city council to apply any
part of the revenue from the bonds to
the payment of an overdraft or any
other Indebtedness incurred before the
bonds are voted by the people.
Second-The city authorities say
frankly that the proposed expenditure
of $250, zoe will not increase the citys
general supply of water. but they claim
] that it win improve the distribution of
I The present supply. and make larger
amount available through the reservoir
/ in cases of emergency.
Third-No: the $250,OCO would not get
the Big Cottonwood water. The cost
| of securing that water and piping it
; properly is variously estimated at from
/ 5000 to S1,O00,0O0. Plans are already
matured, though not published, for the
purchase of Big Cottonwood rights by
the city next year, when it is proposed
by this city administration to spend
at least half a million dollars more for
this purpose.
Fourth-This question, care we UP to
our bond limit?'' is the most serious
point of the four raised. The state con-
stitution provides that no city shall
become indebted to an amount, IN
! GUIDING EXISTING INDEBTED
NESS. exceeding four percentum of the
/ taxable property therein Further pro-
vision allows cities TO incur debt
amounting 10 per cent additional for
water supply, artificial light or sewers.
The present bonded debt OF Salt Lake
City is S2.54S. 600. almost s per cent of
the total assessed valuation. Good
! lawyers, including the city attorney,
hold that the S2,54s,006 debt incurred
before the constitution was adopted
/ cannot be held as a bar to the issue
of water bonds under the debt-limit
/ clause. Other lawyers of equal prom
inence are lust as positive in their
( opinion that the proposed bond issue
would be illegal. In any event, the
/ doubt would certainly make bond
/ BUYERS hesitate to bid on the issue.
and would probably compel the city TO
! sell them at q serious sacrifice, if they
could be sold at all.
. o g
There is no doubt but that the rapid
growth of the city makes an increased
water supply necessary, but the method
proposed is to spend money before the
people authorize it. and in a way that
is open to condemnation. A systematic
| Improvement of the water system car
! ried on every year could be paid for
without embarrassment TO the taXpay-
ers, and secure every needed advantage
for the city. The present plan is to
spend the money first and then say to
/ the citizen:
We have spent your money without
| consulting you. Now you may issue
bonds. or we will levy heavy special
tax" Such disregard of public opinion
and legal rights is sure TO arouse just
| Indignation. and is likely to result in
j - .,,.c...c.-iti..,