The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-08-15
Law Says Must Have Sinking
Fund.
IGNORE THIS WHEN MADE LEVY
County Clerk May Have to Add
This Item.
Why Pay 6 Per Cent on War
rants Instead of 3 Per Cent.

fund to take care of the bonded debt,
and also in deliberately planning to
create a deficit in both the building
fund and the general fund, it is
charged that the Topeka board of
education has violated several phases
of the Kansas law. Not only that,
but the action of the board probably
will be set aside, if the levy pub
lished is certified to the county clerk,
and an additional levy of nearly one
mill will be extended to provide the
sinking fund necessary to take care of
| the bonded debt.
! hands of County Clerk Samuel G..
Zimmerman, the bonded Indebtedness
Of the board of education aggregates
$500, 661. The oldest bonds bear the
/ date of 1885, 81 years ago, and a
total of $41,700 of the debt is due and
payable now. The statement shows
that $4,000 in bonds became due five
years ago, July 1, 1907, and a similar
sum became due July 1 in each of the
following years, while additional sums
! fell due this year and still more next
year.
| In spite of the plain provision of law
compelling the boards of education in
cities of the first class to provide a
sinking fund to pay such bonds as
they mature, no steps ever have been
taken to care for the bonded debt of
the Topeka schools, each board pass
| ing the burden on to the next. The
result, it is urged, will be to destroy
the credit of the Topeka board, say
ing nothing of the violation of law,
! Language of the Law
Section 593 of the Kansas statute
under the head of Bonds" which is
perfectly plain, reads as follows:
In every instance in which any
county, city, township, the board of
feif aF1Xr sob AnI
district, shall issue bonds under this
act, it shall be the imperative duty of
/ the proper officers of such county,
| city, township, the board of education
of any city, or of such school district
whose duty 1T may be to levy taxes, to
annually levy, at the time of making
the levy of other taxes, tax suffi-
Gent in amount to pay the interest
upon said bonds and the coupons as
they become due land to create a sink
ing fund as provided for in this act
/ for the payments of the principal of
such bonds"
Section 1860, under the heading,
! SCHOOLS, cities ofcthe first class" also
makes plain the duty of the boards of
| education. An excerpt from the sec
| ton reads: THE board of education
in its annual estimate, as provided
for in section two of this act, shall in
clude an amount sufficient to pay the
| interests as it accrues on all outstand-
u,
to create a sinking fund for the re-
demption of said bonds and shall lew.
and cause the same to be collected in
addition to the levy authorized for
school purposes"
| Despite the fact that 25 wears ago
the first sinking fund should have
been provided under the law to meet
| bonds as they fall due, no steps ever
| nave been taken, and now, with bonds
| becoming due every year the board
| of education is sidestepping the law
and has made no provision for meet
| ing them.
School Board Refuses to Make Lew.
over two weeks ago, when the mat
ter OF the tax levy for the board of
education was under consideration
clerk zimmerman paid a visit to the
BOARD to urge a levy to take care of
| the bonded Indebtedness Sam figured
that the last bond is due in 15 years
and that it would require a levy of
$35,31l year for each of the Il years
to meet them all Such a levy would
not hurt the average taxpayer, and at
the same time would redeem Topeka's
credit, and would comply with the law.
He pointed out to the board the neces-
sity for such action. Notwithstanding
the board refused to make the levy.
zimmerman Will rot say what action
he will take when the levy is certife ed
10 him.
Il haven't seen the levy" he says.
so can't know what it is
But the law provides that, where
the board of education fails to pro-
vide for a sinking fund, it shall be the
duty of the county clerk to extend, such
tax as may be necessary to provide the
sinking fund, and Sam says he will
comply with the law. 1t will require
3 mills to provide the sinking fund
demanded. This will mean a board
of education levy of mills for this
year, and all chance of a reduction in
taxes from last years levy goes glim-
mering.
Not only has the board violated the
law in failing to provide a sinking
fund, it is claimed, but the deliberate
plan of creating a deficit in two funds
also is in violation of law. According
to the published report of the levy the
amount raised by the levy for the gem
eral fund will fall $1S,0S2.51 less than
the estimate In the building fund the
board plans the expenditure of $751;
1886 while one mill levy, proposed,
will raise only S52,174.45. leaving a
deficit in this fund of $9,7S0.09.
In this connection section 1857 OF
the school law reads: In every case
(where repairs, etc. are planned) the
board shall complete said repairs, adj
ditiors, or buildings, together with the
furnishing of the same, and the pur-
chase of such site or sites within the
estimated costs thereof; and IN no case
shall any board create a deficiency or
outstanding obligations in the purchase
of such, site or sites, the making of
such REPAIRS, or the erection or add
lions or buildings.
Pay Per Cent on Warrants.
Even if it were not in violation of
law to plan deficiencies it would be
poor business judgment to permit
them to accumulate, for the taxpayers
pay interest at the rate of per cent
on warrants, unpaid for lack of funds,
which have to be paid eventually to-
gether with the accrued interest there
on. For instance, included in the esti-
mctes this year is item for accrued
interest amounting to $1,1S5, due on
such warrants. The board finally has
to pay the interest on the deficit. The