Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-01-25
TAX INCREASE FOR
FREE GARBAGE AND
SEWERS FORESEEN
William Thompson Presents
Statement to Chamber on
Bond Proposals

Striking facts on territorial and city
finances were presented TO the Cham
Der Of Commerce yesterday afternoon
by its committee on municipal affairs
in the discussion OF the Endorsement
OF q s4s0,000 city bond issue. The
facts were given In statement by
William Thompson, chairman Of the
committee, and this was found OF such
wide interest that II Is published here.
with:
The limit OF the aggregate indebt.
edness that the territory may assume
is fixed by the Organic Act At seven
Cd per cent Of the assessed value Of
property. and the limit Of the amount
that may be incurred In any one year
is fixed at one or per cent Thus, on
property valuation last year OF q
trifIe ever two hundred million. dol
lars the territory Is allowed 10 bond
mp 20 $1,000, 900, not more, however,
than t2,000.000 I'm any one year. or
this amount we have already borrow
ed almost $4,000. 900, upon which we
are paying interest alone OF nearly
$500 each day.
The territorial legislature by law,
permits the. city and county Of Homo
lulu TO issue bonds TO an aggregate Of
2k per cent Of the assessed value
OF property In this city and county
and the limit OF the amount that may
be incurred IN any one year Is Y OF 1
per cent Thus, on q property yalua-
tion Of $1,000 900 our borrowing ca
pacity would be S2.500,O0 or limit
in any one year OF y OF per cent,
which Is $500, 10000. This bonding
capacity has not yet been impaired
by the issuance Of bonds.
Included In the territorial bonds,
however, Is ansamount OF 47,449.09
charged against the city and county,
on which we pay $4,000 interest and
sinking fund yearly. These bonds
were issued for the belt road and 9TH
er purposes.
"The territory also carries in fits
total bonds covering the water de-
partment amounting to s1.142,031. In
terest and sinking funds covering this
issue are met out Of the earnings OF
this department.
sSThe Territory also carries in its
total bonds covering sewers, amount.
fnR to- SEE, $50. a This -department
s. not quite g. succdssful IN meeting
its obligations out Gifts earnings.
Il Is now proposed 70 add to the
water department-
Old bonds ......s1, la, 031.0e
Proposed issue .... 25S,200.00
Total ..,.....,s... 81. 1885,, 231.00
This department claims 70 be able
to meet interest and sinking fund
when due out Of earnings.
'1nasmuch as there Is an insistent
demand for free garbage and sewers.
an entirely different problem con
fronts us with reference to the bonds
for the sewer department.
The present bonded
debt ............,s. $685., 580.S3
Proposed tsue ........ 226,S00.00
Total ..............$5 1878 $4,000
aIf this proposal of free garbage and
free sewers prevails It would seem
almost necessary to levy q special tax
20 meet interest and sinking fund. and
Il would probably be advantageous TO
incorporate In the tax an amount for
operation, furthermore there would be
q considerable saving to the taxpay-
ers II these bonds were 10 be redeem
ed In five years. TO accomplish this
we would need 100000 for redempri
ton and operation each year or. an
addition TO the present rate OF two
mills, bringing It up from OH to
0.141."
SEWER AND GARBAGE TAX RATE
sTATEMENT
For bonds, operating expenses Of
sewer department and the operation
OF q free garbage service.
Redemption Of present bond issue In
i've years win require tax rate each
year Of zoos.
Redemption. Of proposed bond issue
IN five years will require q tax rate
Operating the sewer department
free of charge win require an appro-
priatfon each year Of approximately
$4,000. This Is equivalent to q tax
rate Of .OO03.
Operating the garbage department
free OF charge win require an appro-
priation each year Of approximately
$50. 600 This is equivalent to q tax
rate Of COOS.
Total rate necessary for the above
.O02.
Rate for 1917. ........ .012i
Special sewer. etc. ........ .o02
Total ...s............... .Ol4l
Property Valuation Of stoooooooo
Rate Of .000s equals ....$ 100000