The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1903-05-08

GENTLEMEN:-I wish to call your atten-
tion to matter which is of considerable
interest to the tax payers OF Ely, with rela-
ton to our bonded Indebtedness. AS it APP
pears action was taken at your last meeting
making some disposition of moneys in the
bond and bond interest fund. which evident
~ was without full knowledge of all the
facts. which call your attention to here
with,
The Getty of Ely in June 14th, 1898. bonded
for $4,000 and in June Il. 1899. for $1,000 to the
state state school fund with the understand
ing before the voting on such bonded in
debtedness that in July 1899, the first bond
OF 5000 might be paid, and an equal amount
on the 1st day of July each subsequent year
thereafter. or such amount as should be in
the treasury applicable thereto. provided
the amounts borrowed on bonds should be
come absolutely payable as follows: $1,000
July 1. 1903. $1,000 July 1, 1904. $1,000 July 1.
1905, and $1,000 July /. 1906. with 4 per cent
interest until paid, payable annually.
To meet this bonded Indebtedness the city
has levied each year abont $500 and has
accumulated in the Bond Sinking Fund as |
have. S6494 46 and in the interest fund S1627. 80
and 1T has not paid any part of the bonds as
1t was intended to do and as might have been
done.
The reason the $1,000 was made payable
with also the $1,000 in 1904 was because the
amount of $1,000 under the statute and the
purpose for which the money was to be used
would not admit of a loan for longer per-
iod, and as it was intended to pay them off
as stated in annual payments before the
same became absolutely pay able 1T was not
considered necessary for longer time or that
the payments be extended beyond that
period.
Under the law, being Chap, SO. laws 1897,
section II, which provides that the Auditor
shall make levy for purpose OF paying off
the bonds and interest. IL also provides that
80 per cent additional of the total amount
of principal and interest shall be levied at
the year the same natures to meet the same
when due. With 5000 principal and $500 in
terest pay able in July l. 1904. it will be nee
eSsary to levy the gross sum of $40 500 to pay
the same at maturity or $2496 more than the
face OF the bonds and interest. unless the
said bonds are paid prior to the time the
levy is made this fall by the county auditor.
In connection with the foregoing statement
have to say that herewith submit a copy
of a letter written to me in answer to a let
ter written about this matter prior to your
action at the last meeting with reference
to the bond money in the treasury and in
which letter the auditor states there is no
reason why we should go on making tax
levieS If we have the money on hand.
therefor as one OF the tax payers OF this
city request that Instead of using the money
for which it was not intended and which
seems to be contrary to the provisions of
Sec. 2. Chap. Z, (being the chapter In the
charter having reference to taxation and
bonds and interest on the same Immediately
and prior to Sept /, 1903, pay an additional
$1,000, which will eliminate all bonds from
our indebtedness due In 1904 and allow the
auditor to collect the balance in the proper
way unless there should in the mean time
accumulate sufficient to meet other bonds
before due and the proper levy is made by
the auditor to meet the same.
Ii this is done in the manner suggested 1t
will save to the city tax levies of over
Sill 900 for the purposes named which do not
in the light of facts and that we have the
money seem necessary.
The following is a copy OF the letter of the
State Auditor referred to and which may be
seen if desired.
Respectfully Submitted.
A. j. THOMAS.