Denver labor bulletin. [volume] (Denver, Colo.) 1915-19??, 1918-07-27

edness it may incur and as to the
charges it may make for water. 1t
is the purpose Of the amendment to
make the system self sustaining, but
not to increase the water rates, and
it is confidently believed that within
comparatively short time the rates
may be materially reduced, with i'm
proved service.
The bonds to be issued for the pur-
chase of the plant are not to be placed
upon the market for sale, but are to
be turned over to the water company
in exchange for the property. No part
be provided for during the first ten
years. After ten years sinking fund
is provided for the purpose Of paying
of the bonded Indebtedness when it
natures in thirty years. The reason
for not commencing this sinking fund
earlier was in order that the net earn
ings of the plant could be used for
the purpose of making such extern
sions and additions as are needed for
bringing the system to the highest
state of efficiency. However, should
there be surplus over and above the
operating expenses, the interest on the
bonds and the extensions and addi-
tons, the money is nevertheless to be
the bonds, or the water rates may be
reduced.
Income Increases $4,000.
During the year which will end
October 81, 1918, the water company
will have collected for water $1,45O.-
700. Its income il increasing ut the
rate of from 8h to per Cent per
annum, or between $4,000 and $780,
600 year, SO the city may expect to
collect under the present rates during
the first year 81 500 900, and this will
increase from year to year as the
population of the city increases. The
total cost to the water company in
1917 for operation and maintenance
was 100000.
The interest cost to the city will
be 1924 annually. Adding the in
terest to the operating expenses, as
Stunning it to be as large as the COM
pany had TO pay, would make n total
Of about 81 1000, 900, leaving approx
mateiy 100000 annually for extern
sions and additions. 1t is not antici-
pated. however, that the operating ex-
penses will be nearly so high on the
part of the city. It is believed this
can be very materially reduced.
During the last four years the COM
pany has paid out for extensions and
betterments at the rate of $3.50. 600
per year, which is probably about the
normal amount required for such pur-
pose, but as already stated, in order
to bring the plant to the highest state
Of efficiency it may be wise for three
or four years at least to expend a
large amount annually for extensions
and betterments than has been cx-
pended by the water company, but in
any event it is apparent that the city
will be able to operate the plant, pay
the interest on the bonds and provide
a sinking fund sufficient to retire the
bonds when due without increasing
the rates for water, and within a COM
paratively short time II is anticipated
there will be a very material reduc-
ton in water rates.
On account Of the increased cost of
everything, resulting from the war. Il
follows that IL municipal ownership
is not accomplished now. it will be out
OF the question for many years to
come.
This statement is for the informa-
ton Of the public. The subject Is one
Tor determination by the voters.
Respectfully submitted,
w. F. r. MILLS, Mayor.