The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1912-07-03
CITY TIED UP
on TINE BONDS


at all affected by the law. as pro-
vision Is made for an additional issue
of per cent of the valuation fol
either sewers or water supply.
City on Cash Basis
From being in debt nearly 100000
at the end of last year, and paying
nearly $1,000 per month interest on
outstanding warrants, the city bust
ness has been run on a cash basis
since the first of May, when all out
standing warrants were called in. II
is the expectation of Mr.. Croker to
conduct the city business on a cash
basis at least until in September or
October, and possibly through the re-
manner of the year, when the new tax
levy will become available.
On Oct. 1, 1911, when the commiss-
ion had assumed full charge OF the
city affairs, the outstanding warrant
indebtedness was $81, 753.4S. On Jan,
this had been increased to $685.
29524. 5
Refund 100000 of Debt
Shortly after the first of the year,
when the levy for 1912 was available,
the commission sold an issue of $780,
600 in refunding bonds. taking UP that
amount of the warrant Indebtedness
carried over from 1871. This left
about $4,000 to be paid off, and that
amount has already been paid by the
city.
A redemption fund has been start
ed for the purpose of calling in $780,
600 in bonds, and this fund already
amounts, at the end of June, to $14,-
1862. 1t is expected that by the first
of January the total of this fund will
be 100000, when that amount of the
refunding bonds will be called in. Mr..
Croker expects within two years
more to pay off all the entire $4,000,
which will leave the city clear of all
Indebtedness excepting the long time
bond issues.
In addition to paying off $4,000
of the warrant Indebtedness since Jan.
1, 1912, the current expenses of the
city. amounting to $75,901.74 for the
first five months Of the year. have
also been paid. A total of $1,145
worth of warrants were still outstand-
ing on June 1, but these are nearly
all warrants which have never been
called for, '.'
Interest Big item
The item of interest alone on the
warrant Indebtedness which, was. be-
ing carried amounted up close, to
$1,000 month, a portion of which is
being saved by the policy of calling in
warrants and by the refunding plan.
In February the interest paid on war
rants was $720.55, in March $9S4.S9,
I,,,t tn NEor,
$1O.S7.
During the first of the year the ex-
penditure of $75,901.74 for current
expenses includes number of items
which would not be encountered an
other year. In January the total was
$17,O97.15, but of this amount $500
was paid on the city's share of the
Schanno- Broadgauge pipe line, $4,000
long due to the state as it's share of
the liquor license was paid, and about
$500 worth of new equipment bought
for the street department. Tn March
the total expenditure of $15.29o.S7 in
cluded another payment of $3,13586
on the city's share of the. Schanno-
Broadguage ditch The expenditure
In April was 1874. 55, in May s14,-
21131. tfeAt 9Ione On &
.> When Bonds Are Due
or the $32S,000 in bonds, on which
the city has no option to recall, ? the
first to come due is an issue of s4S,-
900, which Is due in 1925. In 1928 an
issue Of $4,000 becomes due. In 1880
an issue of 100000 is due. and in 1881
there are two, one Of $4,000 and an
other of $4,000, or a total of $780,
600. Thus nearly one-third of the
$32S,000 cannot be recalled by the
city for 10 years.
On this account it is the settled pol
icy of the city now to have an option
on every bond issue which is sold.
Commissioner Croker estimates that
If such an option were held on the
bonds outstanding at least a portion
of them could be redeemed before
their time was out.