Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-03-26

1914 ................ 132, 1860
The increase for the five years fol-
lowing April 1, 1909, was over So per
cent. For the same period the tax
levy was raised from 80 mills to 36.5
bills, or gain Of over 81 per cent.
The last levy made under the old form
Of government in 1910 was 35 mills, an
increase Of II mills over that made two
years earlier in 1908-an increase OF 40
per cent and in the same period the
indebtedness increased 20 per cent.
During the three years of which re-
ports have been issued under the COM
mission form of government the levy
has increased only III mills. and the
indebtedness has increased $4,000 ap-
proximately, according to the report
Of the examiner from the state audi
tors office, for the year ending April
I. 1914, the latest report that IS avail
able. It must be remembered that no
part Of the maintenance and extension
Of the water works system is included
In either the increased taxes or In
debtedness. The people take care OF that
expense, by the way of water rents.
It is right that where an expendi-
ture is wisely made for property or
an Improvement that will he of per-
manent value for many years, debt
should be incurred to carry portion
or all Of the burden for a>term ofyears
In this way portion Of the cost must
be paid by those who are to use the
Improvement in the future. But even
in that case the Interest," on 1.-THE In
debtedness makes an additional burden
on the taxpayer that should have con-
sideration. For instance. 1t has cost
10, fpfo 10
ter works Indebtedness, incurred in
1875 to construct the water works, in
order to put the burden Of the pay
ment Of the bonds over onto this gem
Grafton Of taxpayers. In 1892 sewer
outlet was laid from the southeast part
of the city, to connect with the river.
This sewer cost s13,5o0 and was fin,
anced by issuing bonds of that amount.
The city has already paid interest on
those bonds, to the amount of $13, 1872.
and is still keeping it up at the rate
of $40 year. In one year more this
generation OF taxpayers will have paid
in interest more than the original cost
of the sewer, and the burden Is still
on us.
The Indebtedness above mentioned
was incurred for good and permanent
Improvement and as such was rightly
incurred for term of years. The only
question Is as to how long the liquida-
ton Of the bonds should be deferred
and the burden of interest carried.
Another class Of Indebtedness is
created by issuing warrants when
there are no funds to pay them and
then making the Indebtedness perman-
ent in q measure by funding them into
bonds. This method Of increasing the
indebtedness has been used on several
occasions, as follows:
April l.. 1880. for funding out
standing warrants .......... $4,000
May "a, 1885, for funding out
standing warrants ........... $4,000
July 1, 1904, for funding out
standing warrants ........... $4,000
May /, 1909 for funding out
standing warrants ........... 1900
May l, 1911, for FUNDING OUT
standing warrants ........... $4,000
Total .ss7 900
OF this amount s26,500 has been re-
tired. leaving s6O,50O outstanding at
the date OF the last annual report,
April Il, 1914, on which the city is pay
ink interest at the rate OF $1,000 annu-
ALLY. The objection to this class OF
indebtedness is that it is method
by which city councils have been able
to conceal their financial deHnquen-
cies and have passed the burden on to
their successors. 1t is hard to say
how much Of this class OF our present
debt was incurred for permanent i'm
provements. and how much for the
current expense of city government. 1t
is wrong that one generation Of tax
PAYERS should be compelled to bear tn
burden of tho interest and final llqul-
dation OF any part Of the current ex-
penditures Of previous generation.
The law was amended several years ago
making 1t illegal to issue warrants Tor
current expenses in anticipation OF the
revenues further than the end OF the
year then current at the time of the
issue Of the warrants. This class OF
Indebtedness seems to have increased
by $21,2s7.54 during the last two years
under the old form Of government. On
May 1, 1911, all the outstanding war
rants were converted into bonds. and
under the commission the amount has
not been materially increased.
Thus we see that the city 10 sending
OF annually to eastern capitalists as
interest on its indebtedness $500 in
round numbers. This Is more than
one hair as much as is annually appro-
lpyiated for the use Of the streets and
alleys. Il requires mill levy to
provide for It. The statutory limit OF
indebtedness for this city: with Its
taxable value rof 2.:s7.5s9,t tis sl14.s7s.