The daily tribune., 1908-12-10
REFuNblNe tine
WATER WORKS BONDS
tContinued from peRe 2.>

and the drainage tunnel at the head
of the system has been enlarged and
made more secure, besides which
there have been other minor i'm
provements. and now at this time
the revenues from the system have
been sufficient to pay for all such
Improvements. and they have also
patd up and redeemed all of said out
standing water warrants and interest
thereon above mentioned In 1904.
amounting to the sum Of upwards Of
$34. 600 90 in round numbers. and the
water warrants are now at par. and
are cashed a. soon as issued.
This brings us to the fact that a.
the water system is now and for sew
eral years past has been managed. 1t
can be relied upon for an income Of
somewhat over $40 900. 90 per annum.
and the city now stands with the fol-
lowing Indebtedness In round num-
bers:
Outstanding water warrants. none
outstanding general warrants. $50.
227. 90 with interest thereon at 8 per
WORKS bonds, $l35, 900. 0O-with inter
est thereon to January and next,
"a, o50. 90; total, $l94 ,277. 90; cash on
hand for redemption and interest on
said bonds, $54, ,050. 90; total net debt.
$40 ,277. 00-subject to some further
reduction on account of small cash
balance which will still remain on
hand.
Compare this with the total net
indebtedness at the time above recit.
ed, April 1904.
Total debt, April 1904. Excluding
sewer bonds $3.50. s75 90; net debt
after payment Of $50. 900. 90 Of water
bonds, $40. 227. co.; net decrease Of
indebt edness, $50, ,14s 90.
To repeat it will be observed that
all water warrants outstanding have
been paid and redeemed AS above
stated, and the city hall bonds in the
sum of $5. 900 90 with interest have
been paid and now at this time, aside
from the sewer bonds which are out
standing, but not included herein
for the reason that they are taz
upon specific property and not debt
against the general municipality. our
total outstanding debt is represented
by said water bonds, and in round
NUM- bers the sum of little over sos,
600. 90 of general warrants.
This brings us to the consideration
of what is the most desi sirable course
now to pursue. Two courses are
open; one to continue the present rat'
of taxation and to use ALEC all of thu
system, and to apply the same eacl
six months as it shall accumulate 70
the redemption of said $S5. 900. 90 O
water works bonds " hich will still b.
left outstanding January 2nd, afte
$50. 900. 90 thereon have been redeemed
and at the same time to catch n
slowly as we can and to overcome
said 500 900. 90 Of outstanding 6 pc
cent warrants In the general funds.
The other proposition offered is t
refund said balance OF eS5. 900 90 G
water works bonds at s per cent i
terest. interest payable semi annual
ly, said bonds to be optioually due a
the option Of the city in ten veal
from date. and absolutely due an pay
able in twenty years from 5ate, An
thus to continue the final redemptio
Of said bonds to such future time.
such refunding bonds be issued,
levy must be made each year Of /
or 6 mills to meet the interest Their
on, and for the eth year and eac
year thereafter = levy must be mao
sufficient to raise sinking fund equ
to l-lO of said refunding issue
*s. 500 annually. and after the lo'
year from date. said refunding bon
becoming optionally due at the o
tion of the city, all monies 10 rails
and becoming available for REDEEM
tion purposes can be applied semi a
nually in the redemption Of IA
bonds and no large redemption ful
will be required to be kept long
, hand Rs has been necessary with t
= present issue.
Putting the observations = lit,
1t further. and comparing the amou
of such refunding bonds with tine =
nual earnings Of the wAterworks .,
tenn. we shall stand with the folio
ing figures In front of us, II "a
bonds should be refunded:
Annual earnings wator works, u
900. 90; annual interest on refundil
bonds. n. 800. 90; balance profit frt
water works. Is. 500. 90.
From this point, We submit the ,
~ plication Of funds will be mat
N for determination by the future ,
ministrstors Of the city's affairs, n
y the question is open for every PER-
m 6uure II oug fnf hifnseif Ilnwa