The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1914-12-03
MORE ABOUT CITY AFFAIRS

At the last regular meeting Of the
Brookiugs Commercial Club the city
attorney submitted a statement of the
city finances for the past year. His
figures were accompanied by some
very important explanations which
made the situation fairly clear, but
when those figures were published
without the detailed explanation, they
became very misleading.
Fer instance, the figures on the
heating and lighting plant included
only net receipt and net outlay, show
ins a balance in favor of the plant of
$5,H60.O0. These figures have been
quoted in other newspapers of the
state thus conveying the idea that the
heat and lighting plant is a great
money maker for the city of Brook
ings. As a matter of fact, those figures
did not include anything that usually
comes under the term overhead eX.
penses.
There is now invested in the heat
NJ and lighting plant in round mum
bers forty thousand ($%i0,00O.0O) do
lars The least that should be figured
for losses due to wear and tear on
such a plant is ten per cent or four
thousand ($4, 900 0) dollars per year.
The interest on such an investment is
low at seven per cen or two thousand
eight hundred go, S00.00) dollars. Now
if this plant belonged to a private in
dividual, he would have to pay taxes,
and because no taxes are paid on this
plant, the other taxpayers have to
make it up. Taxes would probably
not be paid on 100000 but more
likely on 1000. 90, which with the
present levy would be close to $500,
thus bringing the total overhead ex
penses up to seven thousand four hun,
.t.ed (s7,4O0. OO) dollars.
In the figures submitted by the city
attorney, no reference was made to
the street lighting. The city has no
record of the actual amount of elec-
tricity used for this purpose; but it is
fair to assume that it will not exceed
two thousand ($2, 100000 dollars. This
should be added to the credit of the
plant, bringing it up to $7,S60.OO. Sub
tract from this $4,000 for for over,
head expenses and we have a net bal
ance in favor of the plant of $4,000
and not $5,86O.00.
According to the rate we pay for
electricity, the lighting plant should
have a profit of several thousand dol
lars a year This leads us to the con
ciusion thai the heating plant is oper-
ated at a great loss to the city.
A former manager of the city heat
ing and lighting plant told ne On sew
eral occasions that the lighting plant
was a paying proposition but that the
heating plant was operated at a loss
of more than 100000 per year. The
figures here submitted would indicate
that the loss is even greater than his
estimate.
If Brookings is going to continue to
operate these public utility plants, let
the city get down to a business basis
at once. Let a competent man be en-
ployed as city business manager. Make
I;~1 O.-@on;h1@ &C.,. oil nitr brcinncc
affairs including streets and alleys,
yea, even the city disgrace, known as
the dump yard. Even if the city has
to pay as much as three thousand
($3, 900. O0) dollars in salary for such a
man, it will pay in the end.
The city of Brookings has operated
some of these plants for 10 or II years
and there is no excuse or necessity
for cropping around in the dark any
longer. The actual amount of heat
energy used in each branch of service
can be determined by tests.
And it is no more difficult to make a
complete test on the heating and
lighting plant in Brookings than to
make an efficiency test on any other
plant. For in all such cases, a com
plete record is kept Of the perform
ance Of each unit, such as boilers, en-
gines and generators.
II one branch of the public utility
shows an exhorbitant profit like the
telephone plant, let the rates be re-
duced until it produces a fair profit.
If another branch of the service
shows a loss, let the rates be increas
ed until 1t also shows a small profit.
But in any event. all branches should
be tested out to ascertain what II
would cast to operate them. For only
then can the left hand know what the
right hand is doing. III. G.. SOlberg.