The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1914-10-22
COMMISSION FURNISHES DATA
Letter to Council Shows Justice of the
City Paying It's Share in the Sup
port of Municipal Water Company
Little Business Before the Council.


final action on the plan to have the
city pay hydrant rentals to the water
company at the meeting held on Mon
day evening and the whole matter was
laid over pending the coming of mem
bers of the railroad commission for
further consideration of the matter
with the members of the council and
the water board. The sentiment in re-
gard to the payment of hydrant rem
tails was badly divided and vote
would probably have shown majority
of the members Of the council against
the plan. The discussion of the matter
proved the most interesting feature of
the session of the council. The matter
is clearly stated in the following COM
munication which was submitted to the
council by the water board:
October IS, 1914.
Frank Grasser, President Board of
Water Commissioners, Kenosha, Wis.
Dear Sir
In connection with the application
of your commission for authority to in
crease water rates, we take this oppor-
tunity to call attention to number Of
circumstances which indicate that it
would be more equitable to all parties
concerned if the increased revenue
were paid by the city Of Kenosha in
the form of payment for fire protec-
tion rather than by the general con-
sumers through increased rates for
water.
AS we understand the situation, the
city of Kenosha paid hydrant rental
for number of years, such hydrant
rental being used to meet the interest
on outstanding bonds and to retire a
portion of the bonds. Altogether we
understand that about $71,0 900 of bonds
were retired by money received from
the city either directly or indirectly.
The other $4,000 worth of bonds were
retired by money received from general
consumers. During all this period, it
seems that the general service has pro-
duced revenue enough to meet the en-
tire running expenses of the plant, re-
tire 100000 worth of bonds, and pay
for all extensions, amounting to CON
siderably over $200,00OO0. AS the
plant stands today, therefore, the city
has paid for about ST., 900 of the in
vestment and the general consumers
have paid for approximately $4,000
of the investment. The revenues from
general consumers at the present time
-are sufficient to meet the operating ex-
penses of the plant and leave good
surplus. During the year 1914, the
revenues from general service were
$52,27079. The total expenses were
$20,5S4.45. The net revenues from OBJ
GRAFTON were $31, 6S6.34, or very nearly
ten per cent upon the investment
which has been made in the plant.
Any water works plant supplying
both fire protection and general service
las to be considerably larger than it
would have to be to supply general
service alone. In Kenosha, your intake
must be larger. You must have more
powerful pumping equipment, and the
mains through which the water is dis
tributed must be large enough to meet
the combined demands for fire protec-
ton and general service. The fact that
you have to operate much larger
plant than would otherwise be the case
makes your operating expenses higher
than they would be for general service
alone. Certain items of expense are
incurred entirely for fire protection,
such, for example, as the maintenance
| of hydrants. If your plant did not
have to furnish fire protection, it is
very probable that larger intake
would not be needed at the present
time. Inasmuch as considerable part
of the investment in your present
plant is needed for fire protection, as
the additions to your plant which you
contemplate making are made neces-
sary in order that you may meet the
higher demand, and as the revenue
from general consumers now yields a
net return above operating expenses of
almost ten per cent, it seems to US that
/ the fair thing to do would be for the
| city to pay enough in the form Of
hydrant rental to meet the needs Of the
plant for further revenue in order to
finance its extensions.
There is another matter which it
might be worth while to consider in
this connection, and that is that as tx
city finds 1t necessary TO float mortgage
certificates in order to Obtain the
money fer extension, it will probably
be much easier to feat such certificates
II the city will pledge certain amount
OF revenue to pay the interest and re
deem the principal Of such certificates
than If the holders of certificates have
TO rely on the general earnings Of the
plant This will be particularly true
because Of the policy followed in Ke
nosha of making all extensions out OF
earnings. In year wlsn a number OF