The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-03-26
FINANCING OF
CITY'S PLANT
NOW COMPLETE
Money for Special Assessment
Warrants Is Paid Over to
CITY Officials in Mime
apOliS
OPERATION HELD GOOD
Engineers Estimate Is to Ef-
feet That Water Works
Will Show Profit ut End
of Year
OPERATION HELD GOOD

The final act IN the financing pro
gram Of the city commission in TAX
ms over the property of the Bis
marck Water Company and charging
the plant was completed in Mime
apoIis yesterday when financial
houses paid over to A. J.. Lcnhart,
president of the city commission,
$200,O75.OO for special assessment
warrants issued. according to word
received here With the previous
sale. of two bond issues the city has
now obtained all tn" money neccs-
sarv to pay the expense Of its water
works program.
The total cost of the water work.
system complete is placed by I. X.
Atkinson. city engineer. at $G60,075.
The financing was accomplished by
two bond issues, one for $235,000 and
one for $225,000, and issuance of
special assessment warrants totalling
$200.075. making the total financial
obligations on account of the water
works program $GG0,O75.
After a study of operation Of the
water works system since December
/, 1923, when the plant was taken
over and study of the previous
operation of the Bismarck Water
Supply Company, the city engineer
estimates that the city will be able
to operate the plant on present rates,
which arc less by the 81 pcrcen;
surchargc than formerly charged, and
meet all fixed charges and operating
expenses. Under the estimate. there
would be balance at the end of the
year, after allowing for maintenance
repairs of Approximately $4,000.
Increased consumption is expected
by the city officials after the COM
pletion of the new plant and in.
stallation of favorable lawn ant
garden rates. and rs the city grows
so that they estimate that the ev
rei'iente in operating the water plant
should grow more favorable eacl
year.
Estimate of Operations
The engineers estimate of wha
may be expected of the water work.
department for the first year of cit
operation, ending December |, 1924
follows:
ross operating income -. SG9,l75
Gross operating expense =. 23,ll0
Net operating income .... iG,0G5.O
Annual interest and princi
pal payments ........ 43.lO2.5
balance ..............S 2,9bZ.4
The estimate is based upon tn
first three months operation of tn
plant under city control and prcviou
operation in private hands, and tn
city engineer is satisfied that on thi
basis the city will profit by tn
plants operation.
The final cost of the new systcl
will be somewhat less than was ~
ticipated. The original cost figure
at the time of opening bids for
complete new plant was S695,0O
After bids were received negotiation
we're entered into hich resulted
the purchase of the old plant fc
$265, 900 and the installation of Die:
el oil burning engine was decided o.
Some reduction was made in the di
tribution system, leaving the net CO.
$66O.075.
Additions to the distribution sy
tenn in the form of additional distr
button mains will be made in the f,
ture when property owners, petite
for the improvement, in the san
manner as for the building of
sewer. Already several petitions ha'
come before the city commissit
which would result in the addtit
Of new customers to the city sy
tenn.
Allow For Growth
One factor which causes officia
to be somewhat optimistic is tn
the plant, when completed, will ha
greater capacity than the prese
consumption, so that as the consum
ton grows through growth of t!
city or increased sales no new capt.
expenditures will be necessary. TIL
should result in greater ratio
profit, it is stated.
The new plant probably will
completed ythe first of June.
large part of the work has been dor
Some delay is caused by failure
one contractor to complete the inta
nine. and with the Missouri Riv
likely to break up at any time