The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1903-04-12
REPORT OF
THE EXPERTS
Astoria Water Commission Makes
q Very CreditabIe Showing
In Conduct Of Affairs.

The following report of Experts Clark
and Buchanan on the condition Of the
finances of the Astoria Water comn1ss-
sion reflects much credit on the man
ner In which It's affairs are conducted: !:
Astoria, Oregon, March IL. is03. Ito
the Astoria Water Commission Gent
lemen: Our examination Of the ac-
counts Of your water commission COW
ering the period from October /, 1900
to December 81. 1902 inclusive, show all
monies received by the commission
from It's various sources OF revenue 10
have been properly deposited with the
treasurer and all disbursements to have
been made by warrants drawn on the
treasurer. duly authorized by your
board.
The balances as shown TO be ON hand
December 81. 1902, having been verified
by us, being as follows:
Cash In general fund. ...........3 $3.50. %
General fund securities as
per itemized list. st............ s,e73.50
Cash in sinking fund ....... lf6.01
Sinking fund securities as per
itemized list ...........,..... f9,9s5.30
Total ....s,t.....t..+........ $sb.9lo.l5
The above being exclusive Of accrued
G.xT - H. o.I tsa
held.
In the report OF receipts and disburse
ments for the quarter ending Decem-
81. 1892. furnished the common council
OF Astoria under that date Of January
70. 1908. by your commission, the cash
balance In general fund Is shown as
being 1889 II, while the real balance
as shown by the books was sS,lso. .s2, the
difference being the expenditures for
December for which warrants we're
drawn in January and included.
Warrants Nos. 1911 for s2.65 and 2017 |
for 25c were issued over six years ago
and never presented for payment. In |
order that the books Of the clerk and
treasurer agree We would suggest the |
cancellation Of these warrants.
In the handling of municipal affairs,
conducted as they necessarily must be |
In strict accordance with the terms |
and powers granted by the governing
charter, IT Is often found that the pro-
visions Of charter passed years ago
are inadequate to meet the demands |
OF growing corporation and In the
conduct OF The business many techni- |
cal violations of the charter are allow
ed to occur. while notwithstanding be-
ing made In good faith and apparently
In the interest OF all concerned. give
rise to opportunities for legal conten-
tlons with the accompanying expense
and delay Of litigation. This is IL
Illustrated In the case Of your invest
ment of certain monies of the general
fund in securities. privilege under
your existing charter granted to the
funds of the sinking fund only. The
sinking fund being established to pro-
vide for the redemption OF bonds must |
remain intact and the apparent aeum-
ulated surplus in the regular or gem
eral fund would be called upon in case
of any extraordinary contingency,
therefore. 1t would be unsafe to in
crease the annual provision for the
sinking fund at the general funds ex-
pense but to order that the idle funds
be invested In interest earning securi-
ties we would suggest a modification
of your charter. allowing certain per-
centage Of the general fund to be so
invested. In case OF emergency these
securities could easily be converted in
to cash.
At your meeting held in, January,
1908, you placed $4,000 of the water
bonds held as general fund securities
to the sinking fund. These bonds were
purchased at premium and cost the
general fund $500, but are now trans
ferred to the sinking fund at face val
ue. This Is, in our opinion, incorrect,
as the sinking fund should reimburse
the general fund for the amour paid.
assuming the securities to be worth
that amount,
In conclusion, we take pleasure in
stating that your books and records are
neatly and intelligently kept, the sys-
tenn being comprehensive and leaving
little to be desired as regards safe ac-
Respectfully submitted.
Clark ana Buchanan.