The daily tribune., 1907-11-30
WILL DISCUSS The
REFUNDING OF BONDS

January the city council VIII take
up the matter OF the refunding of the
city water bonds and learn of the
place best to dispose of them and at
the lowest rate Of interest. On the
first Of January 1909 the bonds fall
due or az much Of them as the city
feels able to retire, although they
can run to 1911 II the city so elects.
But this would not be good dis
play of business jugdment as the
city now has on hand something
like $40, 900, what is called the
sinking fund, and which will be
used in paying off portion Of the
bonds. This amount of money was
reported to be on hand by City 1reas-
urer Howells in his monthly report
submitted to the city at the first reg
ular meeting.
But $40. 900 is not all the bonds the
city will call in and cancel in 1909.
Through taxation there will be 3d.
800 more to come into the Golfers of
the city next year. or when this
that at least $1,000 will have been
set aside from next years water col
lections. This will make total Of
$65. 900 that will be paid over to the
holders of the bonds, leaving differ
ence of $4,000 worth of bonds to be
$135. 900.
1t is the intention to place these
bonds where the lowest rate of in
terest will be exacted and the present
council will try to place them at four
per cent il possible but it may be
necessary to pay four and one half
per cent. The bonds are now draw
ing six per cent or total interest Of
$s.l00 1t will be noticed that with
t65. 600 dollars less to pay interest on
and go, 600 at four and one half per
cent, the total interest will not exceed
q, $50 or a saving Of &5,050, which
wuold be respectable income for
any man.
The present intention is to refund
the bonds for term Of twenty years,
with option Of redeeming in from
twelve to fifteen years. 1t is figured
out that the revenue from the water
works (present figures will be suff;i .
cient to pay off the water bonds and
interest in twelve years. When the
bonds are refunded the special tax
which has been levied for the purpose
Of taking care of the bonds will be
abolished.
At the present time the Floren &C
city assessment Is thirty-six mile and
only eleven mills OF this amount Is
used in the general fund. leaving
twenty Ave mills for water purposes.
1t can be readily seen that most of
Florence's taxation was for the water
works. These twenty five mills
brings revenue to the city of about
SEQ, 900 per annum and in 1909 this
levy will be cut In half, which will
still give the city sum of &i0.OOC
and 1t is proposed to apply this to
the general fund to pay of the float.
ing warrant Indebtedness And in five
years from 1909 all the indebtedness.
in this department will have been
wiped out and the city will be prac,
tically free from debt The water
works will take care of it's own in.
debtedness, the sewer will be self-sus
tanning, and the general fund should
be on IA cash basis. After the water
works bonds are called IN and can.
ccllcd there will be no taxes because
the revenue from the water works and
the annual licenses will carry the
expense Of the city. This will bc IN
about thirteen years from now.
The assessed valuation OF Florence
property IL about $500. 900 and Il
twelve mill tax levy In 1918 will pay
all the city expenses. bringing down
the taxes TO n levy Of abouts Ave POI
cent OF tho Assessed valuation which
Ii . reduction Of about thirty. three
aud onc.third per cent.