The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-03-27
CITY MAY FAIRLY
WALLOW IN BONDS
Dininny Gives Permission to
Issue Any Amount Up to
S1,880,0O0 More.
HALL SOUNDS A WARNING
CONTENDS THAT ADDITIONAL
DEBT MAY BE AVOIDED.

N According to an opinion being prepared
by III. j. Dininny, city attorney. ana MS
assistant, p. j. DAILY the city can issue
bonds to the amount of Sl,SSO0oO, instead
of s6SO,Oo0 as contemplated.
The opinion will probably be submitted
TO the council either today or At the regu-
Jar meeting next Monday evening
The constitution provides that a CITY OF
the first class can issue bonds TO the
extent OF 4 per cent of the assessed Valu-
alton for sewer, water and light pur-
poses and per cent for general corpo-
rate purposes.
At present there are outstanding bonds
10 the amount of S3,79s.000 for all pur-
poses, approximately per cent of the
assessed valuation
OF this amount. however. only 1880.
ol0 are for water and sewer bonds and
the remainder were issued years ago for
corporate purposes and have since been
taken up by bonds known as ''refundlng''
bonds, the money from which was used
TO pay off the bonds which had already
matured. According to the city attor-
ney's opinion it is not right to class these
"refundins bonds as part of the bond
ed Indebtedness of the city, and with
these deducted he finds that the city
can issue bonds to the extent of 81 800 COO
$500 for water and sewer purposes, and
the remainder for general purposes.
The ''refunding bonds We're issued to
take up the corporate bonds issued during
tipe time Utah was a territory and con-
The s per cent limit on the city. This is
lsnother reason, in the opinion of Mr.
Dintnny, why more bonds be is
sued.
City Auditor EIated.
City Auditor Aft was the first city of
ficial to learn of the decision being pre-
pared, and he was very much elated de-
claring that the decision means that the
city can go on with its work of improve
ment without hindrance or molestation.
The question came up before the city
attorney in a roundabout way. Two weeks
ago the city authorized the purchase of
four more voting machines at $3.50 each.
The last legislature provided that the city
could issue bonds for the purchase OF
voting machines and il was decided to
pay for them in that way. A form of
bond was submitted TO the city attorney
Tor approval and he began then an in
vestigation into the actual bonded in
dehtedness of the city, resulting in the
decision arrived at
The form Of bond for the voting ma
chimes required hat IL be stated exactly
what the bonded Indebtedness OF the CITY
IS and as this was not included i'm the
bond submitted for his approved he looked
up the matter. The voting machine bond
VIII be returned to the council withou.
the attorneys approval because he saws
that II is not technically correct, and
accompanying it will be the opinion on the
bond issue.
Halls Proposition.
Inc Councll met again yesterday as 4
committee of the whole to decide ON the
bond issue question. Another meeting
will be held this afternoon. at which time
come definite action will be taken. As
'She American members are a unit for
the issue II will no doubt be passed and
put up TO the people to vote on in sixty
days.
Councilman l.. E Hail. from the
Fourth ward, did most of the talking
yesterday He commended that the city
could pay. off its existing Indebtedness
and still have s175.O00 to spend for i'm
provelnents this year without the issI-
ance Of bonds.
he submitted the following tables, pre-
pared by himself. to show that the CITY
If all debts contracted before Jan. l. 1875.
are paid out of the revenue due uD TO
that period, and a clean balance sheer
made beginning at that time. can easily
exist without a bond issue
Resources for 1908.