The Raymer enterprise., 1919-06-19
SCHOOL BOARD
NEcOT|ATEs BONDS


Saturday Mr.. C. N. Phillips. re-
presenting the firm Of Benwell. Phil
lips. Este & Co.. bond brokers Of
Denver, was In Raymer and closed a
contract with the school board by
which they agree to buy $4,000
worth OF school bonds of this dis
trtct bearing 5A percent interest,
and for these bonds the firm will pay
par and accrued interest.
The election will be called just as
soon as the proceedings and notices
can be prepared. The proceedings
are more technical In funding issue
such % the one proposed, than in Q
straight building proposal, SO that
q little more time will be required.
The proceedings will all be prepared
by the bonding house attorneys. and
the work will be done by them for
no extra compensation.
The contract made with the bond
ing house. 10 Of course. only a condi-
tional contract. and not binding un-
less the voters ratify the proposition
At a special election to be held at an
early date. II the proposal does not
carry. the bonding house Is out the
legal work done on the matter.
In last weeks Enterprise we pre-
sentsd some facts In relation to this
matter. and we have been urged to
repeat the article again this week,
and urge those who may have failed
TO read 1t last week to do SO now
The article In question follows:
Representatives OF four different
bond dealers were in Raymer Tues
day to nsgotiste q bond Issue for the
purpose Of retiring outstanding
school warrants.
There xers'ruesday morning, ac-
cording 70. report from County
Treasurer Phillips by telephone.
$30;S7S.i4 IN registered warrants.
He informs Us that there remain
something like $4,000 OF school tax
TO be collected which will be avail
able to reduce the amount Of these
warrants IN August or September.
Howver, II the tax when collected,
-<saaUpetsa 70 estiring warrants. new
warrants will have to continue to be
registered. 20 that the amount would
be approximately the same again in
. short time.
Upon these outstanding warrants
the district is required to. pay six per
cnt interest. We can float bonds at
6K per cent. The direct saving In
interest will be then $225 per year.
But as a warrant has no certain
day OF payment, 1t is not SO desir,
able form Of investment and war
rants are being discounted 2 to S
per cent.
This discount is considered BY
teachers, drivers and dealers, SO that
teachers are offering to hire for less
money, II the district agrees to make
the discount good.
This brings the interest rate which
the warrants really cost at the pres
emit time to 10 per cent or even more
When all school warrants are reg
istered and discounts prevail, the
district will pay the discount in In
creased wages and prices; so the In
terest rate will really be about 10
per cent, and the saving around
1880 per year In interest charges
Some patrons Of the school have
thought that the bond issue would
mean higher taxes. The fact is that
the bond issue will assist in keeping
from raising the tax levy.
The warrants must be paid togeth-
or with the interest. The present
tar levy 10 required to pay the run
ming expenses Of the school. The
only way then to get away from the
registering Of warrants Is to issue
bonds or increase the levy 80 a. not
only to pay running expenses. but
retire the warrants. A tax SUFFICIENT
to retire all Of the warrants in one
year II there was no school at all
would be about half more than all Of
the school tax levied for this year.
That 10 II your school tax was 800.
this year. 1t would require a pay
ment Of $3.50 by you TO take up the
warrants alone. The running ex-
penses would have to be paid in ad-
dition. OF course. no one would ad-
vocate an attempt to liquidate the
outstanding warrants in one year by
taxation. It would be drastic to at
tempt to retire them in six years. and
to do that would require that 5000
: ysar be raised over current expens-
= to retire the warrants In six years,
besides the annual interest charge
Of $500 In excess Of the bond rate
OF interest.