Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-03-05
SPECIAL ELECTION ON PROPOSAL
TO BOND CITY IN SUM
OF $s5oooo.
TOTAL TAX FOR 1918
SLIGHTLY OVER $4,000
City Council Fixes Definite Total foe
sonds-Fisuros Based on Estimates
Of Consulting Engineers, Taking In.
to Consideration Load Carried by
City and Utilities Company.

Altho the petition calling for a spec
ial election to determine whether OF
not the city shall be bonded for the
purpose of constructing and operating
an electric light and power plant did
not specify the limit to which the city
might be bonded, the city council IN
calling the election clearly specifies
the amount OF the bonding at sSSO'OVo.
In explanation of the manner IN
which this sum was arrived at mem
bers Of the city administration consid-
cred the present load carried by the
Iowa Railway and Light Company, the
present load carried by the city, the
present price of machinery and equip
ment necessary in installing plant
which could enter the competitive field
and necessary changes in present
equipment, all based on figures SUD
mitted by consulting engineers. Inc
cost of the rehabilitation of the pres
ent city plant was figured out year
ago and these figures are included IN
the present total estimate.
Less Than Bond Limit.
The city might legally bond to the
sum OF si95 900 for this purpose but
the city administration has obtained
figures which 1t believes will enable
IN TO build a plant for considerably
less than the bondable limit.
The city therefore contemplates the
expenditure of s35O.000 for q plant to
compete with the private corporation.
and at the same time supply the city
lights as heretofore, while the private
corporations plant has been appraised
at s564.59i This appraisement was
made by experts selected by the city
council and the basis of cost used was
costs prior TO the war or for the pre-
var period of 1881.
Basis Of Valuation.
The rate advance granted was based
upon the increased fuel and labor cost
Of production without interest. profit
or depreciation Of the plant. The COM
'pany's experts filed an estimate OF
more than $500. 900 for the present re-
placement value at war costs. The
court. however. considered only the in
creased fuel and labor costs and added
the increase TO the pre-war rates FOR
service This increase was awarded on
~ during the war and for six months
after peace had been officially declar-
ed. II amounted to cent per *. W.
divided 4 cent on light and p cent on
power above the previous rates.
The city's estimate is on plant
which is expected to supply the city
with street lights and to compete with
the private corporation on the assump-
ton that the city plant will carry all
the patronage now carried by the pri-
vate corporation.
Greater Than Total Tax.
\ bond issue of $3.50, 900 by this city
will be an Indebtedness greater than
the entire taxes which owners OF city
property will pay this year for all pur-
poses. state. county. city and schools.
Each property owners share Of the
dent would be more than his total tax
cs due this year on his property. City
property will pay this year s313,lS5 in
taxes for all purposes as compared TO
bonded debt Of $4,000, proposed for
an electric light plant.