Imperial Valley press., 1936-09-20
THE DISTRICT SETS
THE TAX RATE


Most of us are busy considering the
S4.65 tax rate set by the Irrigation Dis
trict for the coming year and comparing
it with the S2.40 rate prevailing for the
present 1886 period.
AT first glance the jump looks eXcep-
tionally large, bigger in fact than had
been anticipated despite the longtime
knowledge that a big "up" was neces-
sary to meet obligations.
Closer consideration, however, reveals
that the increase is not as serious as it
appears.
In the first place, rate of S4.65 per
hundred dollar valuation on the new and
reduced assessment basis, is much diff
ferent than S465 on the old valuations.
In fact, S4.65 levy on one-third re-
duced assessment, is equal to about 1912
on the same assessment basis as prevails
this year. So, we must compare S3.12
with $40 in order to get clearer pic
ture of the real increase. The difference,
then, is the difference between paying
S1.00 in 1887 to each SIS paid this year.
This does not mean that district eX-
penses are increased by this same ratio.
Examination shows that the increase is
but 13 per cent, and is almost entirely
accounted for by the jump in fixed
charges over which the district has no
control.
Whereas the expected total cost Of
the district this year amounts to S2,O32,-
600, the anticipated total for 1887 is
of
1854 900 for which three items are re-
sponsible In 1897, there will be $171,-
600 more due for interest on bonds and
warrants than this year. AS arranged
and determined by the government,
payment of S43, 900 on Laguna dam will
fall due. Neither of these items can be
controlled by the board Only over the
increase of $4,000 in the cost of opera
ton and maintenance does the board
exercise any authority whatsoever.
The suggestion that the district de-
fault its interest payments, is completely
unthinkable Never before has there
been a time when it was so essential to
establish and maintain confidence in I'M
perial Valley as today. Defaulting would
have as an objective, refunding our bond
ed Indebtedness at minimum rate But
by shooting at one target, our entire
structure would be sacrificed.
Applications for funds with which to
carry on the power program are at stake.
Now is a crucial time in obtaining the
necessary money under these applica-
tions To ruin our credit on bond indebt-
edness would shatter opportunities to
quickly and speedily obtain the funds
with which to start work on this most
essential program.
1t might be otherwise were it not so
essential that the canal pay for itself
from power revenue. If we could afford
to take the chance of adding canal costs
to the expense outlook for future years,
we might gamble Showdown" game
with bondholders . that is if we be-
lieved in he theory of reneging on our
obligations.
But there is every indication that a
refunding plan may be accomplished at
between rs cents and 80 cents on the
dollar. 1t is far better to accept what
we can get and at the same time protect
the power program, rather than to gam
BILE everything on hope that We might
obtain better refunding settlement.
Few indeed would care to risk the entire
future of the valley and every investment
in it, by defaulting at this time.
-
1t is high time Hollywood off-the-rec-
ord romances were regarded as occupa-
tional hazards.