, 1906-03-03
$76,56O
West Side System.

. 9. -. . . . . . . . p iV,OOU
West Side System.
No engineering expenses or con-
~tingencies are included in the above
estimate. If the bond issue is car
ried and the present system on the
west side is found to be adequate and
in a good state of preservation, and
suitable for a number of years, by the
city purchasing it at a reasonable
price, and extending the system to &C
commodate those not now connected,
probably $4,000 or $1,000 could be
as full rate of freight is included in
above price of pipe, whatever con
~cessions the railroad company may
make to the city on freight charges
will be deducted from the above esti-
mate. But as neither of these items
are assured, the estimate has been
based on a complete new system OIL.
the west side and full freight to be
paid on pipe.
Payment for System,
In connection with the purchase and
installation of such new system, it is
but proper that the council suggest a
plan of payment which should appeal
to the taxpayers and individual users
of water as working the least hardship
on either and being as equitable as
possible to both. The council begs to
submit the following plan, which is
subject to alterations, should a better
one be suggested:
Figuring on the basis of the issu-
ance of the entire sum of $50, 900 in
4 per cent ten-twenty veal bonds, the
So, 200. An additional levy of 2 mills
tax under the present so per cent val
uation of the assessed property of the
city will take care Of and pay off this
interest each year.
Flat Rate Proposed.
AS to the payment of the principal
sum, the council suggests that a fiat
rate be made to all consumers of wa
ter proportionate to the amount OF
water actually used, such fiat rate Io
be fixed so that the average charge TO
1000 consumers, the present estimated
number, would be SIS per year. By this
means a sinking fund will be estab
lished of $4,000 per year, which, at
the end of the t~en-year optional pc
Rod, would amount to $4,000, which
could at that time be used to reduce
the principal bonded Indebtedness.
After the first year the 5000 realized
from the fiat rate each year could be
invested in safe interest-bearing Sc
curities, and the interest from this
source could be used, either to pay the
so reduce the 2 mills tax levy. or it
could be allowed to accumulate to be
added to the $50, 900 to be applied on
the principal bonded Indebtedness at
the end of the ten-year period.
If this proposed method of payment
is followed out for a period of sixteen
years, the entire water system would
be paid for and the citizens of Lar
annie will then, in truth, have free
water.
Main Points in Favor.
The main point in favor of this
method of payment, as against provid-
ing a sufficient sinking fund by tax
levy, is that no will pay
more than SO per year, nor none less
than 81 per year, while at the same
time the person who gets the benefit
of the water will pay for it, and the
will not be called upon to pay a tax
for water that does mt benefit
him from the actual use of the
water. 1t should be kept in mind that
any method of payment adopted by the
present city council, if found imprac-
ticeable, or unjust, may be changed
by any succeeding council.
If a better method of payment a
be suggested, the council stands ready
to give it careful consideration.
AS to the Proposed Bond Issue.
On February 10 the city council passed
and approved an ordinance calling for
a special election to submit to the
qualified electors the question: Wheth-
er or not the city council shall be au-
thorized to issue and sell the negotiable
coupon bonds of the city in the sum of
$50, 900, or so much thereof as is suf-
ficient to. purchase and install a COM
plete system of water works for the
city.
The law specifically provides what
kind of bonds can be issued and the
terms. The city can issue its nego-
table coupon bonds absolutely pay
able in twenty years and payable at
the option of the city my time after