The weekly Iberian. (New Iberia, La.) 1894-1946, 1909-09-25

In All prohahilil the ,uestio
VIII he put 10 the property tax
payers, al a special election. {
take the senae Of the people q
ono Of two propositions efcoetin
: The interests of the New Ihpri
Electric Light Plant & Waterwork'
one Of these propositions will i
for ihp people TO retain control u
the plant and improve II to tn
point Of making il efficient an,
economical Fhe other carries th
condition that the plant shall d
surrendered To private control IN
der the form Of a lease.
Which shall i he's
Tho property taxpayers OF thi
city are now paving special
mill tax FOR the benefit Of IN,
electric light plant aud water.
works. This tax was voted Nv tn,
taxpayers Of this city on Ortol,e,
3rd, 1000. and is conditioned 10 m,
till the end nf 1911, unless soone.
terminated hy the paving off OF
the outstanding bonds. Bonds
were floated on this special 3-mjJ
tax 10 the amount OF $4,000 Jus,
!
fm,nistration 81 1000 of these bonds
were paid off, leaving outstanding
at the present time X35. 900 The
/ 3-M'l, Tax Fnnd has a credi, Of
$4,000 now, and when the taxes are
collected this fall there should I've
very nearly $4,000 available for
the retirement of bonds. IT this
can he done there would remain
outstanding S25, 200 oi the old
bonds.
The Board OF Commissioners, in
its resolution to the City Council.
proposes a 3miIl tax, if the peo-
pie decide to improve and extend
the plant. This 3-miII tax WOULD
NOT BE AN ADDITIONAL TAX
IN ANY SENSE, for il is intended
TO be the basis of a new bond is
sue; part of the money from the
new bond issue would be used at
once to pay off the old bonds; the
payment of the outstanding old
bonds would. of itself, cancel the
old 3-mill tax. From this it is
clear that it would be to put the
new 3-mill tax in place of the old
lor presently 3-miIl tax, with this
difference: The present 3-mill tax
was voted to run till the end OF
1911, while the new 3-mill tax would
have to be voted to run some 10
years longer SO that practically
il is very simple proposition Of
asking the people to extend the
collection Of the present 3-mill tax
Tor lOyears longer than originally
voted. This means that the tax
payer would not have any more
taxes to pay this year, Tor next, or
next, till the end of 1919 than the,
row have. The idea is, not to in
crease the taxes Of the people a
hove what they now are: yet at the
same time to provide the necessary
funds to improve and extend the
plant.
This new 3-miIl tax, voted for
17years, would allow of a bond is-
sue of $4,000. It would, on the
present assessment of the CITY
(2,23O, 900, provide an annual re-
venue OF 5000, against which
would be the annual interest on |
the bonds Of $3.50 per year, for
the first five years, leaving the
difference Of 5000 per wear to 90
to Sinking Fund.- At the end
Of the first five years there should
I've money enough i'm The Treasury
10 retire X15,50O worth of bonds
White everyone will admit that
he assessment of the city will in
'rease through coming years lit
,as more than doubled in the past
en- years. bond buyers, in all pro-
liability will insist on holding us
o the present assessment for all
tending 10 limit the
lme the tax will have to run. If
he assessment of the city will in
rease during the next 5 years at
he same rate that it increased the
'ast ~ years, the 3-mill tax would
'ield, IN the second period OF s
ears, considerably above $4,000 per
ear. But we are not allowed to
AXE such basis for our calcula-
ions-we are held to the present
assessment for the whole life of
he bond issue.
The second period of 5 years of
he new bond issue would then
ave to be calculated on the same
$500 revenue; but the interest on
ne remaining bonds would be less
han the amount paid in the first
year period. This would tend
increase the Sinking Fund. The
carefully carried out,
ill show that it would be possible
retire $4,000 worth OF the re-
laining bonds at the end of the
nd 5-year period.
At the end of the 3rd period of
years Tor Is years in alb the Sink
Y Fund should allow Of the re-
rement of $25,5O0 more of the .
Dnds.
There would then remain but
1000 of the new bond issue to be
ared for, which could be easily
.red for by the Sinking Fund in
ID years more.
Any increase of the Assessment
lat may come after this year, 1909.
i'll increase the Sinking Fund,
hich will enable the retirement OF |
ore bonds and the shortening of
e time the 3-mill tax will have
run. 1t Is, within the range of
disabilities tlrNt all the bonds
'uld be retired in IS years.
With an up-to-date plant, equip
ID with modern machinery, il is
80 within the range OF possibih-
IS that it would be able to assist
the retirement of the bonds. II
is can be brought about it would
I'VE the tendency Of further