Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, 1904-12-23
LOWER WATER TAX
Levy Is 4 1-2 Mills AS Against S 1-4
Mills Last Year.

mill from the levy Of last year. The
City Council, at its regular meeting
Monday night, listened to a report of
the Finance Committee setting forth
the fact that levy of AZ mills would
raise the $3.50 required for the sinking
fund and also pay the annual interest
on the water bonds, and the levy was
made in accordance with the recon-
mendation of the committee.
H ad it not been for the extension of
the Levens street main, a still greater
reduction could have made in this
years water levy. This main will
supply water for the protection of the
Johnson Lumber Company sawmill
in North Dallas. Mr.. johnson is put
ting inshis mill and lumber yard, at
his own expense, system of mains
and hydrants to cost not less than
$1,000, and the city main will connect
with this system at the east end of the
yard, near the mill office. AS this
sawmill is Dallas most important in
dustry, and as insurance rates on the
mill are so high as to be prohibitive, the
council decided recently to contribute
to the expense of extending the city
main to the mill. Under this arrange
ment Mr.. Gates has agreed to furnish
water for all the mill company's
hydrants at a nominal:rate. With the
expenditure of $1,000 by Mr.. Johnson,
and the aid rendered by the city, the
Dallas sawmill will have fire pro-
lection second to that of no mill in
Oregon. The 800 expended by the
city is to be applied as part payment
on the purchase of water plant at
the end of 20 years
The $3.50 principal raised by the new
levy will be placed in the sinking fund
as soon as it is received, and will be
loaned at the first opportunity, and
the city will then have $500 drawing
interest to help offset the interest
which has to be paid on the water
bonds. OF the $3.50 raised last year,
$500 is now drawing interest at per
cent, and $3.50 at per cent AS the
water bonds draw only per cent, it
will be seen at a glance that by add
ing $3.50 to the sinking fund each
year, the amount of interest received
by the city will, before many years,
leave the amount to be raised by tax
alton so small as to be of no particular
consequence to any taxpayer.
Another course that may be pursued
by the council, if it SO desires, is to
place this interest back in the sink
ing fund to be loaned, thus compound
ing the interest. By following this
latter method, it will be possible for
the city to realize the entire amount of
the debt six or eight years before the
bonds fall due. This would cut off |
the water tax entirely, for the reason
that the city would have money ON
hand sufficient to pay off all the bonds, |
and the interest on this sum each year
would more than offset the interest |
on the bonds for the remainder of the
time until they become due.
The bonded indebtedness Of the city
is in good shape, and, if it is handled |
properly, the burden of taxation will |
grow lighter and lighter each year.
Cities in Oregon that have provided |
sinking funds against their bonded |
Indebtedness, and have handled these
funds in business-like manner, are
all in good shape financially. On the
other hand, the cities that have taken
no thought as to how their debts shall
be paid, are all struggling along
under a burden of taxation I'M
portant public improvements cost
money, and as all progressive towns
find it necessary to make such i'm
provements, the only wise course to
pursue is to handle the indebtedness
thus created in such a manner as to
make it's payment fall as lightly as
pOoOlDIC upOu bllC GuA JCLS'
The Dallas water tax is lighter this
year than it was last year, although |
the amount Of taxable property in the
city, as returned by the assessor, is
not appreciably greater. The tax
next year should be lighter than it is
this year, and it should continue to
grow less and less each year until the
entire debt is paid. IF it does not con-
tinue to decrease, it will be because
the city officers are not doing their
whole duty. The OBSERVER desires to
impress this fact firmly in the mind
of every taxpayer in Dallas, so that it
will be remembered. Your water tax |
should never again be as high as it
was the first year, and it should de-
crease with each succeeding year. The
sinking fund was created to help take
the burden off your shoulders, and it
will do it, if properly handled.
We deal with this matter at length |
at this time because it is Of great i'm
portance to every citizen Of Dallas.
The handling Of this fund alone
should be an incentive to every tax
payer to see that the interest in city
affairs is not allowed to slumber, and
that none but level-headed, progres
sive business men are chosen for city |
offices. Do not permit the selection of
capable men to go by default at the
coming city election, but put in men
to succeed the retiring officers who
will assist the hold-over councilmen /
in handling the water fund in such a