The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-07-05
WHY BONDS ARE ASKED.

Al iCspohSc 10 the repeated ueIndnuS
OF The Herald, the proper officials of
the city administration have furnished
complete, detailed statement of all
the facts bearing on the need for the
proposed bond issue of $780, 900. The
statement, which is printed in full in
this issue. covers every possible ques-
ton as to the financial status of the
city. the expenditures of past years on
pubic improvements, the disposition
made of the million-dolla bond issue,
the expenditures from the general fund
Cor public improvements. the outstand-
ing Indebtedness of the city. contracts
let this year, and the proportion of the
burden borne by property owners and
the city.
Generally speaking. the record makes
better showing than had been antici-
pated, and shows conclusively that the
people are confronted with one OF two
alternatives: Either the bonds must
be voted or the tax levy for this and
succeeding years must be raised to the
maximum. In fairness. too. it must
be said the statement shows much
larger amount paid for public improve
ments out of the general fund than has
been understood. Members of the ad-
ministration admit that last years out
lay was made without even an approx
innate idea OF the scale on which oper-
atoms were being carried on and with
no accurate knowledge of the city's fl
nances or what deficits would confront
them at the end of the year. In a
word. the administration committed it
self to larger expenditure than it should
have undertaken, and now finds itself
confronted with the necessity of bond
issue or an enormous tax levy.
When IL is known that the figures
show over $500, 900 paid out of the gen.
eral funds raised by taxation in 1907.
and applied TO permanent public i'm
provements. the extravagant plan of
new construction in vogue last year is
apparent. In addition, over 100000 in
excess of the million-dollar bond issue
was spent for improvements which it
was supposed would be covered by that
issue. Obviously the money raised by
with 100000 of Improvement expense
in one year: but, just as obviously. the
improvements have been secured as
permanent assets of the city and obvi-
ate the need of that expense at later
day.
The chairman of the finance commit
tee, Councilman w. Mont Ferry, is au-
thority for the statement that none of
the bond proceeds Will be used to take
up deficits except the 100000 specified
sewer improvements. and will be le-
Ultimate charge against Improvement
funds. He is also on record with the
mayor and council in the promise that
all of the money derived from bonds
will be used for water and sewer i'm
provements and for no other purpose.
The plan is 10 use the bond money for
water main extensions and sewer work
and make no regular levy for water or
sewer or irrigation purposes. The taxes
thus saved will be used in the levy
for street funds and the contingent
funds According to Mr.. Ferry the
bond issue would clear the decks and
enable the city for the first time in
its history to meet current expenses
out of current revenues and avoid the
necessity for carrying debts over from
one year 10 the next in order to come
within the debt limit.
With all the facts before them. the
voters who will decide the fate of the
bond issue are in position TO act intel
lieently. AS has been said. the ques-
ton is whether they prefer TO vote for
bonds or stand heavy increase in
the tax levy for this year with the pros
pect of suspending some of the i'm
portant projects now under way. 1t
is more than a question of politics or OF
partisan tactics. There is no doubt
hut that the Americans" have been
reckless in expenditure and careless in
their methods: they have gone ahead
with improvements when they did not
kncw whether they had the money for
them or not: they have paid very little
attention to the economies which should
have been inaugurated the moment
they found they had gone beyond the
city's resources. Worse than this. they
have not been entirely frank with the
taxpayers. and. until this statement
was Given The Herald. they have not
told tho people Of Salt Lake just where
they stood financially.
waving their lack Of good faith with