The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-06-24
NO EXTENSIONS NOW.
Complications About Regulations of
the Water Plant.

] 49, NN--~-A = -e>-Ase
/
Can the city make any more extern
/ slons OF water mains under the terms
/ OF house bill S0S passed by the last leg
lslature which is an act authorizing
cities of the first. second and third class
TO issue bonds for natural gas, water,
| llght and heating purposes2
This is the question which has been
sprung II it is true that no extensions
can be made except as a surplus ac-
eumulates in the fund for the depart
n1ent and that no bonds can be issued
the agitation for extensions will be eff
| feetually stopped.
At the present time the only way ex-
| tensions can be made is through a bond
issue as the plant viii be simply meet
ing running expenses and interest
charges for the first two years.
Section one providing for the issuance
| OF The bonds states in part: THAT
whenever and as often as a. majority of
tofore held. or hereafter called and held,
IN any city of the first, second or third
class, shall vote in favor of the issuance
Of bonds of such city for the purpose of
purchasing constructing or extending
works for the purpose Of supplying such
city and its inhabitants with natural
gas, water, electric light, or heating it
shall be lawful for the mayor and the
city council Of said city by ordinance
| duly passed, to direct the issuance of
the bonds so voted, ETC."
Section 4. mo bonds in excess Of Is
per centuTn Of the assessed valuation of
such city shall be issued under the au-
thority OF this act."s
The assessed valuation of the city is
$11, 224,e12. The bonded indebted
ness, not counting paving, sewers and
new bridges, amounts to $1,145,600.
The paving and sewers represent
to $4,000 more The total bonds out,
$1,843,2 Fifteen per cent of the
assessed valuation is S1,6S3, 1860. If
an Interpretation is to include the paw
ing and sewers as bonded Indebtedness
against the city directly, according to
the law the city has exceeded the Is
per cent prescribed under the new
law and no extensions can be made
until a surplus accumulateS in the
water works funds. If the paving
and sewers are to be cut out the city
has still lee way for some 100000 for
which it may issue bonds.
City Attorney Dreaming believes that
a strict Interpretation of the law will
take in the bonds issued for paving
and sewers. "Of course" said he.
this is not directly Indebtedness. These
benefit districts and special taxes are
local in their scope. But suppose, for
instance, they should forfeit payment,
it would be the city which would have
to become responsible for the payment
of the bonds. This, I think, would
lead to the Interpretation of the law
bonds, and this being the interpreta-
ton, the city has exceeded the Is per
cent of the assessed valuation and
cannot issue bonds to pay for extern
sions as some would be in favor of do
ing
The matter of extensions is one of
the most troublesome portions of the
local water works situation. fight
will be precipitated over section of
the proposed ordinance which pro-
vides that a sufficient number of con-
tracts must be executed and delivered
in advance from intending users of
water to insure a profit of 10 per cent
per annum on the cost of extensions.
Councilman Sinner states that he is
opposed to such a restriction Of extern
sions and that he will fight the section.
He thinks that the districts which have
no fire protection at present should not
be bound by a section which hampers
extensions.
It is probable that Sinner will have
some supporters in the body OF the
council since it is the intention of the
ordinance to maintain the taxes for fire
hydrant rentals and other public usage
of water by the city in the same man
ner as obtained previous to city owner
ship.
In the meantime a slight difference
of opinion exists between William Green
of the Waterworks committee and the
city attorney. Dreaming states that he
has the waterworks ordinance drawn up
waterworks committee of the council in
time for the council meeting Monday
evening. William Green, chairman of
the WaterWorks committee, differs with
the city attorney He said: THAT or
dinance is not ready. There are a lot
Of things to go in there before I am
satisfied. I have written for copies of
ordinances which are in use in other
cities and I am not ready by any means
to pass upon the ordinance as it is
now drawn IN We cannot consider the
ordinance until the first week in July"
Dreaming says that several ordinances
will be drawn up providing for the sew
eral phases of the management of the
plant and that the ordinance which he
has now drawn up covers only the es-
sential features of management and
disposition of funds. That ne will draw
up other ordinances relating to the
manner in which rates shall be fixed,
extensions, usage of water and other
phases of the situation. Instead of
drawing up and passing one general or
dinance there will be therefore several.