The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-12-13
HE CLAIMS HIS PLAN OF PROCEED.
URE IN WATERWoRks is
FEASIBLE.
avors Issuance Of Municipal Bonds
Up to Limit Of indebtedness Next
Year.

A reporter of the Statesman re-
quested City Attorney Blandford to ex-
plain his plan of procedure for con-
structing the water works and raising
the funds therefor, as suggested by him
to the council last evening. Mr.. Bland
ford said:
MY plan is perfectly simple and
feasible.
"First-The council shall adopt de-
tailed plans and specifications, with
necessary maps, profles, ETC., COM
plete, so as to show exactly what
must be done to put the extension in
working order, and estimate the cost
thereof as near as may be.
"Second-Pass an ordinance in
which the above mentioned plans are
described in a brief, comprehensive
general manner, calling for special
election at which the plans will be
which ratification will require a ma
jority vote of the voters voting at such
election.
''Third-Raise the necessary funds
for such extension in the manner fol-
lowing: First, at such election, ask
the voters to ratify an Indebtedness
in the sum Of about $4,000, the same
being the balance of the per cent
on the present assessed valuation OF
the city of Walla Walla, and with this
the proposed extension, in accordance
with the plans adopted. This sum
will carry on the work at least until
the next assessment roll of the city
is complete, when the council can de-
termine whether the increased roll will
permit Of further bonds being Issued
so as to again go to the five per
| cent limit under the new assessment.
the new roll, call another special
| election to incur the additional a
! debtedness on the amount that can
be raised on the new assessment. Sec
ond Second. Having then exhausted
! the five per cent for which straight
municipal bands can be issued, place
all the remaining cost of the ex-
tension on special fund created by
setting aside the necessary amount
| e ni-Ntc nfnY
just as we did when we floated $217,-
900 of water and sewer bonds in 1899.
At that time the council set aside
$4,000 from the revenues, and pledged
that sum annually, as a fund from
which to pay the interest on such
bonds, and with which to pay them
off with the surplus above the
amount required for interest, and
these bonds have an established
command a premium, and said fund
will pay off all said bonds in about q
years from date of issue.
Il can illustrate this method of Gre
ating a special fund as follows: Say
that the city snail find it necessary
to issue 100000 on a special water
revenue fund, and that the bonds
draw five per cent interest. This will
make an annual interest charge OF
sum, while sufficient to pay the inter-
est, would create a perpetual debt
there being no surplus to pay off the
bonds-which the city must not do.
But if the city set aside a fund of
$6O5O, there would be the necessary in
terest money and enough left to call
one $1,000 bond and interest thereon
each year Sucn a fund would pay
off the 100 bonds in about IS or 80
added to such fund. The law allows
the city to add to sucn fund from
any available revenues it may have,
and with the moneys available to call
outstanding bonds at any interest
paying period. In my opinion, the
sum of $4,000 taken from the water
revenues will be sufficient upon which
to issue all the bonds that will be
required to raise the necessary
money to build the extension and put
in the gravity system, sucn bonds to
be additional to what the city can raise
on the five per cent municipal bonds.
No municipal Indebtedness is created
nv the issuance of such bonds on the
1 special fund, and no taxes are levied
by the city to pay them. They are
charged wholly against the water