Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1914-01-10

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has been unable to pay from the mill
light levy, to which amount Of levy II
Is limited by law, such levy now bring
ing in from $4,000 to $4,000 per an.
mum.
AS none of the principal would fall
due the first year after issuing the
bonds. the city would, from the light
levy Of mills, pay of the light in
debtedness. $1,000, and one-half Of
the interest on the bonds, $4,000. The
second year $4,000 principal and $4,000
interest, which would require not to
exceed mill levy, and each succeed
ing year $4,000 Of the principal and
$3.50 less In interest, with constantly
diminishing light levy each year until
at the end of II years no further light
levy would be required.
With no increase In the present
water levy, the water works would, out
of it's present net revenues OF over $685.
900, and which will increase from year
to year as the number Of consumers
increase. be able to pay $4,000 interest
the first year, $500 principal and in.
terest the second year, $3.50, the third
year and $3.50 less each succeeding
year until at the end of the II years
the bonds would be paid.
Thus when the maximum payment of
interest and principal Is required, ~,
500 the second year, there would re.
main out Of the more than $4,000 an.
nual revenues of the water works. up.
ward of $17,500. either for additional
improvements. the creation of a sink.
| ing fund for the payment Of the $685.,
| how Ic 40 IN
water levy or reduction In the water
rates charged consumers, as the then
city authorities might determine to be-.
for the best interests Of the city.
Thus, instead Of there being an in
crease intaxation, II the bonds are is-
sued, the improvements made. and the
city does its own lighting, there will be
a steady reduction in taxation from
year to year during the II years, after
which all levies for street lighting can
be discontinued.
That the liquidation OF the indebted
ness incurred to make the proposed i'm
provements can be made and at the
same time decrease taxation Is there
fore absolutely certain. 1t is true that
there will be reduction In the rev.
enues of the water works. available
| III ploNOu1SALS, VI OH 0NOkoSO VI
about $6,023 per annum, which Is
shown can be readily borne, and will
be wholly eliminated at the end OF
eleven years.
To put 1t in another way, the com.
bined average yearly payments OF both
the city from it's light fund and the
water works from its revenues during
the II years will amount to $12,046,
L., . L. kInS~ -
proposal of the Ottumwa Railway &
II years, the city will own the dams
cost Of street lighting will be the cost
of operation, maintenance and depre.
citation, only. In the other case the
city will pay larger sum during the
II years, at the ord OF which period
it will have none OF the proposed i'm.
provements, bu. simply then have ito
do what it should do now, or else con.
tinue to purchase power when 1t has
an ample supply of its own.
During the eleven years and there.
after, the operating and maintenance
expenses of the lighting system, to.
Eether with proper charge for de-
probation will he fully met In the saw.
ing of fuel in the operation OF the
waterworks, at least $4,000 per annunn,
and in the value of the surplus power,
which after allowing for all coming.
encies, cannot be placed at less than
$4,000 per annum.
1t should be stated that the water
works has boiler capacity OF 900
horsepower, sufficient to meet any de.
mands in case of temporary failure Of
water power.
Without entering into discussion
as to the reasonableness of any prop
osition that has been or may be made
for lighting the streets of the city by
current generated by steam, 1t Is cer-
tain that such proposal must newt
ably be enough higher than where
current is produced by water power to
cover the cost of fuel, some $4,000 per
annum, as the cost of operation, main
tenance and charge for depreciation
should be, on the whole, practically
the same But the incidental bene-
fits, in the saving Of fuel to the water
works, $4,000, and the value of SUR
plus power S5,000 should not be over
looked in considering the proposed inn
provements.
The waterworks trustees have no
personal interest in the propositions to
be submitted to the voters, but they,
together with the mayor and council
men, are heartily in accord In the be-
lief that 1t Is Of vital interest to the
city that the propositions to make the
improvements and issue the bonds be
endorsed by the electors Of the city.
! Yours truly,
H. L. Waterman,
Chairman Board Waterworks Trustees.