The Raymer enterprise., 1919-06-12


outlying school buildings cost about
$4,000. 1t is readily seen that about
$4,000 OF this had to be paid In
warrants. Two years later another
bond issue was floated for $3.400.
but again the cost Of completing the
building alone outran the bond is
sue by more than $1,000. leaving the
cost OF completing the heating plant
to be met by registering warrants.
The school district has expended
for the purchase of trucks. $13,216-
43.
Well. pumping machinery, light
ing plant, furpiture, cess pools. ref
creme books, etc. have cost upwards
Of $4,000.
The total cost of the PERMANENT
improvements made in the past four
years since the first bonds were is
sued will run up to the total OF the
bonded debt plus the registered war.
rants. or in excess OF $50. 10000
Cost OF running the schools should
not increase to any large extent the
coming year The garage will cost
s1.S13 With all new trucks, cost
of requirements should be low for
seme time. and not more than one
required each year.
We do not anticipate that the plan
OF keeping the trucks in our own
garage and keeping a mechanic will
show much reduction in expense for
the coming year. but We do believe
that ii will make the service more
efficient and make a saving In the
long run that will justify the added
expense at this time. However, the
move will cost the district something
to try 1t out.
The people of the district have
wanted all of the things that the
board has obtained, and the board
has obtained them as cheaply as they
could. The question now Is how to
meet the expense in the most econ
omical way.
The debt has been contracted and
1t will have to be paid. Obviously,
the lower the rate OF interest we can
get on the debt, the better for the
tax payer. Then too, there will be
more property to help pay the debt
when the bonds come due, and the
levy will not need to be SO very
high to retire the bonds as they
come due.
The new bonds proposed are what
are called 20-40 bonds. We will
not commence to pay these bonds
for twenty years and then they will
be paid of In twenty equal Install
ments OF 81 500 each.
The reasons for making the time
SO long on the new issue are three In
number. A long time bond is more
desirable than short time bond
and brings better price. Should
We issue 1920 bond, we would on
ly be able to get par for a 5ia per
cent bond, so the intrest rate would
be SIS dollars more per year and
we would have to commence pay
ing In ten years and in installments
Of $4,000 each year, for ten years.
The first bond issue was a 1850
bond and was issued four years ago,
so In eleven years we will commence
paying for those bonds, in install
ments Of about $1,130 per year. If
we commenced to pay the new issue
in ten years. we would then have
to raise over $4,000 per year to re-
tire bonds. So the long time bond
is better bond, does not come due
to conflict with the due date of bands
already sold, and will be paid in
smaller instalments
Another thing that might be TAX
en- into consideration is that we will
probably have more taxpayers and
more property to levy the tax on
when It comes time to pay, and that
will make more people to pay. leav-
Ing the burden less for each one, and
lower mill levy.
For instance at the time the pres
ent bonds were floated one mill tax
would raise less than 800, now it
would raise over $1,000. just about
three times as much In four years.
Should as large proportionate in
crease be made In the next eleven
years as has been made In the past
four years, when we commence to re-
tire the bonds the tax will only need
to be two tenths Of a mill to pay each
instalment, or less than one tenth
of what was required to pay the in
terest the first year the bonds were
issued. Should we make no increase
in valuation at all the mill levy re-