East Oregonian : E.O. (Pendleton, OR) 1888-current, 1919-07-02
Water Board Takes up S45,-
900 Indebtedness; City
Council Retires $4,000.
SINKING FUND MONEY
USED FOR PURPOSES
Bonds Retired Yesterday
Held by New York
Bond House.

F'ifty-five thousand dollars in Pen
dleton city Indebtedness, incurred on
July /, 1899, was retired yesterday in
New York city. the water commits
sion having exercised it's option of re-
tiring at 20 years the entire $4,000
bond issue for the old water system
and the city council taking up SlO,-
600 of its general bonded indebted
ness.
Water bonds of the first issue, to-
falling $4,000. were retired from
funds which have accumulated in tho
sinking fund created by the water
board. These bonds contained the 20
year retirement clause although dated
to mature in 1929. They were held by
Koontz Bros, bond brokers, of New
York City.
Ten thousand dollars IN general
city Indebtedness bonds of the $751;
900 issue of July /. 1899, were like
wise retired from funds in the city
treasury sinking fund. of the $685.
0d0 general bonds remaining, any
part or all may. be retired at any time
between now and the maturity date,
July /. 1929. Money for these bonds
as well as for the water bonds was
sent TO Koontz fsros. last month.
AID CITY RETIRISf wmnni
The $4,000 paid off by the city
treasury leaves the bonded indebted
ness of Pendleton at $2G0,O00, all in
20-30 year bonds drawing per cent
interest. The bonds upon which pay
ment was made were issued against
old debts contracted by the city gov
ernment before bonding became com
mon and included money spent for
levees. water sewers and miscellan-
eous items. The funding of the debt
put the city on cash basis, where
It has been ever since.
Bond for City Hall.
When the city hall was proposed,
100000 in bonds were sold to pay for
it. The breaking of the Ievee in 1906
made necessary repairs and extern
sions for which the city issued SlF,-
0OO in bonds. Sewer bonds totaline
$50. 600 are outstanding and $4,000
in street intersection bonds are out
These bonds were made necessary be-
fore property owners were obliged to
pay for the paving of intersections
when Main and Court streets were
hard surfaced.
EOndeu Indebtedness u Nitt titN wa
ter board is still $4,000 more than
that of the city, in spite of the re-
tirement of $45,0o0 yesterday. The
water system now has outstanding
S2g2.OOO in bonds also of the 2O-SO
year optional retirement variety
drawing 5 per cent. Two series of
bonds are being paid off at the rate
of $4,000 annually. the latest issue OF
$40. 600 issued this year being paid off
in that fashion. The city water board
has rapidly growing sinking fund
Of which more bonds can be re-
tired each year If necessary.
schools Bond for Sl6O.oOe.
school District No. 16 has Sl60,OoO
outstanding in bonds, drawing per
cent. In 1925 $4,000 will be retired
and the remaining $10O, ,000 will he re-
tired 10 years later. There is now
$4,000 in the sinking fund against
this amount and by 1925 more than
SOS coo is expected to have accumu-
lated.
The total bonded Indebtedness OF
the City's three chief departments
now outstanding is at this time s6i2,-
GOO which is less than SS2 per capita
for all school. water and city depart
ments.