Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1904-04-12
CREATION Of A
SINKING FUND.
Mayor Morris Sends an Important
Communication to the
City Council.
REGARDING OH B0ND ISSIIE
REGARDING OLD BOND ISSUE.
Urges That This Matter be Attended
To at Once SO as to Tighten
Taxation.

A very important recommendatlo,
was made to the city council las
night by Mayor Morris in regard 10 tn,
creation OF a sinking fund for the re
demption Of the 2O.year $500, 900 FIVE pc
cent bond issue of May 1, 1894, Thu
mayor urges that this most importan
matter be attended to at once 30 thai
the levy for the same may not be sc
heavy upon the taxpayers after this
year as every years delay means O
heavier tax TO raise the amount neces.
sary to redeem the bonds. Further
II Is contended by the mayor that UNI
less some action In this direction Is
taken by the city, the bondholders
might institute proceedings to compel
tax levy for the purpose OF redeemlng
the bonds. The communication of the
mayor, which follows In full, was re-
ferred to the finance committee for
consideration.
ITO the Honorable, the President and
Members of the City Council.
"Gentlemen-Regarding the 20-year,
100000, per cent bond issue OF May
|, 1894, | again respectfully call the
attention of your honorable body 10
the provision in the state statutes for
a sinking fund which reads.
Sub. 6. Sec. POS. The city council
shall have power TO borrow money on
the credit Of the corporation for cor
porate purposes. in the manner and
to the extent allowed by the constitu-
ton and the laws, and to issue war
rants and bonds therefor I'm such
amounts and forms and on such condi-
lions as the council shall determine,
The council shall provide for the pay
ment OF the interest on such bonds as
the same shall become due and for a
sinking fund for the payment Of the
principal thereof within 20 years after
issuing the same
1T is my judgment that the present
administration should prepare 10 ere
ate this sinking fund by a levy upon
the taxable property OF the city. The
total valuation for the year 1903 was
$35,000,06. Assuming that the present
year will show the same valuation,
believe that a "a mill levy will be re.
quired TO raise the $4,000 However,
Nh6tth'i may w
lieve II IL clearly our duty to pro.
vide for this $4,000 every year UNI I
the maturity OF the bonds, Had Coz
nisance heretofore been taken Of this
section OF the statutes and provision
made accordingly half Of the amount
necessary to redeem the bonds would.
by this time, have accumulated In the
sinking fund, thus necessitatng the
levy of but, about. l mill for the re-
mainder Of The period.
Il can see no alternative but that
this administration grasp the situation
and make provision for this sinking
fund Every year II is put off will
make It so much harder for the tax
payers to bear. The money will have
to be provided for and the best and
only time TO begin Is the present. II
some such action Is not taken there is
danger OF the bondholders themselves
proceedings to compel the
city to make the levy which might,
possibly. be higher than 2H mills,
1T need not follow that tax levy
every year will be required for the pur-
pose of raising this money but until
some other source nj revenue Is Great
ed a tax levy will necessarily have to
be resorted to-