The Oskaloosa herald., 1913-03-27
TRANSFER FUNDS
COUNCIL S ORDER
$4,000 FROM SEWER TO THE GEN.
ERAL FUND TO BE MADE.
DEPENDS UPON LEGISLATURE
Idle Funds Of City to be Used in Pay.
ing General Expenses, the Fund
Of Which is Now Very
Much Overdrawn.


Mayor Reynolds presented the follow.
ing written communication to the
members of the body, all being pres
ent with the single exception of r. It.
Penders of the Fourth ward, who was
out of town:
To the City Council, of Oskaloosa,
lowa-Gentlemen: AT the last meet
ing of the council, for the second
time | asked the City Council to pass
the resolution transferring the funds
from the Construction Fund and the
Sewer Fund to the General Fund In
order that they may be used to pay
OFF the obligations of the city; this
you turned down under the pretext
that we were acting contrary to law
and that we would be in danger of
criminal prosecution, which opinion
was shared at the time by the City
Solicitor. | reminded you of the let
ter | had from Senate Ream in
which he advised the transferring of
these funds before asking the legis-
lature to legalize the transfer and
explained that the legislature could
not legalize an Illegal act before it
was performed. | now have a letter,
however, which speaks for. Itself, and
which will protect tue mayor and the
city council in this act from Attorney
General George Cosson, the only de-
partment in the state of Iowa that
can finally prosecute US for this act,
which letter reads as follows: u..
State of Iowa, Department OF
, Justice, Des Moines, Iowa, March
10, 19l3.-Mr. S. V. Reynolds, Os-
kaloosa, Iowa-Dear Sir: Reply
ing to yours of the 18th inst, I
appreciate very clearly the si,ua-
tion your people are in with refer
,cnce to your finances. do not
s believe that your council would
incur criminal prosecution by
merely passing the resolution for
the transferrence of funds, and
then putting it up to the general
assembly to validate the same,
You could, as you suggest, not
act upon, the matter until after
the legislature had taken action.
r Yours very truly, - e..1.,
Therefore, If that Is your only rea-
son for not transferring these funds,
this will relieve the situation and
make it clear to you that you will In
cur no danger. -
You VIII also notice in today's
Register and Leader" that Senate
File No. 257-Smith-To legalizze
resolution OF City Council of the city
of Atlantic, transferring $1,800,0O
from the Sewer Fund to the General
Fund, was passed by the legislature
without dissenting vote.
| wish to call your attention to. the
further fact that after the money Is
received from the present levy this
year, that these two funds will con-
tain something over 100000 and
that your Engineer has stated that
the expenditures for repairing sew
ers, etc, will probably not xeeced
100000. .....t.
Now, taking this for true, it will
leave you 100000 of idle money
which, figuring your outstanding war
rants at 6 per cent, the present rate
of interest. will mean $l.200.0O a
year In interest on account OF idle
money to the general fund and pay
OFF your debts If we are really In ear
nest about economy, than to double
the treasurers salary, as suggested.
However, | wish to be understood as
going on record In favor Of said funds
drawing interest om daily balance
on deposit, with the banks, as shown
by the bank books. all 3D.
Hoping you can now see your way
clear to transfer this money, and pay
OFF your debts. SO that this admins
tration may close without deficit,
i beg to remain, 10" &C.,
"a. fhl Yours truly, .aa...a.. .r- I'D.
F. a. 49,. S. " REYNOLDS, mayor.
That the council might be fully adj
vised in the premises, the mayor also
read copy of the letter which he adj
dressed to Attorney General Cosson,
which is appended:
Mr.. Geo. w. Cosson, Attorney
General, Des Moiles, Iowa, March
10, 1913.-Dear Sir: AS mayor of the
City of Oskaloosa, Iowa, ! am writing
YOU for information concerning the
situation here. think perhaps Sen
ator Ream has spoken to you regard,
ing II.
up until April 1, 1912, we had sa'
looms In Oskaloosa and were getting
about $14,000.00 per annum, license
for the city and the case was tried
here and appealed to the supreme
court and the supreme court over
ruled the lower court and Knocked
the saloons out, and 1t was then toe
late to make a levy to meet the de
felt for the year ending April, 1919
Sometime before, the city council
had created fund known as thf
Construction Fund for sewer outlets
and the building OF ceptic tanks and
that fund now has about slO,OO0.0t
in round numbers, and no prospect o.
ever having any use for it. We also
have Sewer. Fund with about $4,000.
90 and have adopted the new plan o.
assessing it to abntting property
Now there. is a levy at the present
time existing, which will product
about $3,0O0.00 more money in thli
Sewer Fund and about $L60O,OO II
the Construction Fund, making to
tai of $21 100000, which we will b'
absolutely helpless to use. Our out
standing warrants are about $28,
10000, and II we could use this mon
ey and have II transferred TO thu
General Fund, for the purpose of pay
ing our debts. we would be all right
as the new levy will take care of thu
proposition in the future.
"Of course the question OF the sa
looms Is question for the people
and they have decided adversely II
this city, and We are after their de