The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-07-24
Slight Increase May Be Found
to Be Necessary.
TO REFUND. WARRANTS
Provided for by Recent Act of
Legislature.
Paving Largely Responsible
for Increased Indebtedness.

]
forecasting the needs of the administra-
levy suitable to cover the citys expea-
SEES A year ago the city found it neces-
sary to increase the tax for city pur-
poses from II mills to 10 mills on the
dollars For 1904 another raise appears
likely to be necessary. Also the expedi-
ent of issuing refunding bonds to clean
up the outstanding warrants, which, by
November 1, are estimated will amount
to nearly 5000 will have to be resorted
to.
Under a special act of the legislature
for cities of the first class, passed at
the June session, Topeka will be enabled
to refund all warrants outstanding at
November l. Mayor Bergundthal recon-
mends that such a bond issue be made
The unusual expense forced upon the
city by the North Topeka flood is send
ing the running expense bills OF TIE
present administration upward. For the
past two months the monthly expense
has increased from the usual average OF
about $4,000 to SIS. 900. The Parker adj
ministration left the city with defici-
ency of about S37, 900 in the general rev
enue and the general Improvement
funds. At the present time there are
cluster of judgments standing unpaid
against the city, accumulated through
/
to almost exactly $4,000.
City Treasurer M NJ. Hale said to-
day:
by November 1 the city will be deep
ly in debt upon her current expenses. 1t
is impossible to forecast the monthly de-
ficiency which will accumulate in that
time but it may reach $4,000 or more.
Apparently the only way will be for the
city to issue refunding bonds for that
amount and saddle the thing on to the
next generation. The unlocked for ex-
pense created by the flood in North To-
peka is responsible for the increase OF
four or five thousand dollars month
in the current expenses of the city. The
city treasurys income will be less tnan
it was last year by about $4,000 on &C
count of the diminished income from the
police court. The city ran behind about
S37, 900 last year. I can not make posi-
tive estimate but should suppose that
the probable indebtedness by November
/ will be not less than $4,000
The law provides that the city levy
for the general improvement and the
general revenue funds shall not be more
than mills each For several years
past the levy has reached this limit
and has been insufficient After re
funding all the outstanding warrants
and cleaning everything up to NoVem~
Der l the city can only curtall running
expenses and try to live inside its in
come 1t is hoped that the unusual ex>
pense in North Topeka for cleaning UP
streets and restoring city property 10
its former condition will have reached
an end. and that the city will be able
at least to restore its current expense
to its normal
Another important consideration to
be faced by the council will be the fact
that in 1908 there Will fall due to be
paid or refunded by the city of Topeka
S14. 900 in general city bonds. On the
following year $4,000 of general city
bonds will fall due. Most of these bear
al y nj
the 1906 bonds bear only 5. The city
will probably be able to refund these
bonds and pass them onto its descend
ants with an issue of 3 per cent. re-
funding bonds This is what Mayor
Bergundthal will probably recommend
doing. The city has general sinking
fund, created for the purpose of paying
off general bonds, in which there is now
SO. 2S4. Nothing has been paid in to this
fund for three years past. The city
taxes were high and the city practlced
economy by neglecting to make proVl>
sion for it's outstanding bonds. AS to
the method of handling these BONDS.
Mayor Bergundthal said today:
Il have not investigated the city's
condition with regard toher outstanding
general bonds very closely. 1 presume
that the only way to do, under the cir
cumstances, will be to refund all of
them. It is a matter which will have
to be taken I'D with the ways and
means committee next month. 1 had
presumed that the amount in the gen.
eral sinking fund was larger than it is.
Not having studied the subject closely
l am not now able to state what my
recommendation will be in regard to
preparing to meet them"
In case the city decides to create
sinking fund for the purpose of paying
these bonds, it will be necessary to levy
an assessment of q mill for two years
to meet the $4,000 due in 1905, ana p
mill for three years to met the $26OOu
due in 1906 unless it were determined
TO apply the IS, 900 now in the sinking
fund upon this indebtedness. In that
event the necessary levy would be
somewhat reduced. Upon the present
taxable valuation in the city of Topeka
of about S11 GOO, 600 a one mill levy
raises 81 600
A year ago the city found a deficiency
in the fund created for paying interest
due upon its various bond issues and
raised the levy for this purpose 2 per
cent 1t now appears that it will be
necessary to make another slight adj
vance by reason of the additional issue
of paving bonds this year, which has
increased the city's indebtedness to the
there were outstanding internal i'm
Drovenent bonds to the amount OF
$493, S15.72. OF this amount one-tenth
was -laid off this year That left out
standing the amount of SAB, 434, to
which is to be added the recent issue OF
paving bonds, amounting to S422, 1855,
which will bring the total outstanding
indebtedness for internal improvement
purposes up to 1886, 1S9 at the end of the
present fiscal year OF this amount of
Indebtedness the city pays two-fifths OF
the entire amount and interest upon the
fraction. The remainder is paid from
the benefit districts created for the pur-
pose This years issue of paving bonds
will therefore increase the amount for
which the city is Immediately liable
from s197, 526 last year to $226, ATS this
year During the coming year it will
be necessary to provide for the pay
ment of 81, 449 more interest on paving
bonds than was paid last year, and ST.
237 more on the principal than was paid
last year. This is simply the amount
that is to be paid by the oitv at large.
The special districts where paving has
1s-ifhir the