The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1931-12-03
]. HI. Wichman Explains System
of Retiring Debts at
P. T. A. Meeting
DEBT NOW S193,50O
District Owes S1S,500 on High
School Started 26
Years Ago

How the bonded indebtedness of the
Redwood Falls schools is being re-
duced yearly through payments OF
principal and interest and the crea-
ton of a sinking fund was explained
Monday night by J. H. Wichman,
superintendent, at meeting OF Par
ent-Teachers association members
and interested taxpayers at the Lin
coin school auditorium.
The Indebtedness of $223,000 in
1926 will be cut to 100000 by 1889
without an increase in the present
levy, Mr.. Wichman explained. The
indebtedness at the end of this school
year will amount to $193,500 of which
S21,337.95 is invested in a sinking
fund.
School needs for maintenance and
equipment remain at $64,000 per year
through the period from 1923 to 1889
according to budget plans while diff
ferences in sinking fund Investments
and principal and interest payments
cause the total needs to fluctuate
from $78,43O to $83,110 during the
same period.
S175,OOO Due in '39
The school district is still paying on
two bond issues for the high school
building and the Lincoln school build
ing. The Lincoln school issue OF
$4,000 made in 1925 at five per cent
interest paid annually falls due in
total in 1899 while $48, 900 for the high
school will be reduced to $18,500 this
year and will be retired in 1885. The
high school issue is being paid grad
ually and a sinking fund has been set
up to retire the Lincoln issue. In
1889 it is proposed to borrow 100000
from the state to take care OF the
amount still due on the Lincoln bond
issue.
Interest payments on the Lincoln
school issue amount to $3.50 each
year during a Is year period or a
total of $131, ESQ. and the high school
issue is costing $500 in interest this
year. This issue is being retired at
the rate of 800 per year which an
nually cuts the interest payment
which on the $4,000 in ten years
will amount to $11,54O.
In addition to this cost $4,000 is
paid into the sinking fund each year
at present and payments OF $1,000 IN
1897 and 1888 and $4,000 in 1889 will
be necessary to make the fund ade-
ouate to retire $4,000 of the Lincoln
school bonds. The finance plan for
the two school buildings have been
carefully dovetailed so that no sink
ing fund payments are called for In
years when large sections of bonds
are to be retired thus causing the act
ual school boards needs to run quite
uniform.
3 Income Sources
Mr.. Wichman explained that local
school support through taxation
comes from three sources, the regular
levy for $4,000, the one mill tax
which yields $1,450 and a levy OF
81 800 for state bonds. Besides local
tax support, the state aid amounts to
nearly $4,000, the county apportlon-
ment to $4,000 and income from tut
ton and like resources to more than
$4,000.
He stated that the school falls IN
Class C, the highest rank, by meeting
state requirements. State aid amounts
to Is to 20 per cent of the schools IN
come and is dependent in the MAIN
tenance of certain departments.
The state pays the entire cost OF
the teacher training department and
allows $1O0 per pupil up to $1,000 for
the special help room, he said. Both
departments have been under fire IN
agitation for tax reduction. &
In addition the state pays $3.50 to-
wards each of three other depart
ments, the commercial, industrial and
home economics; eight cents per
pupil mile for students transported to
school and 81 per month COR non-resi-
dent students. There are 118 non-re-
sidents in school this year, 10 more
than last year.
Pro-Rating Plan
Mr.. Wichman further explained
that state aid formerly was higher
but that the state legislature appro-
priated only 80 per cent of the de-
Continued on Page Seven)