Nogales international., 1938-06-04
(By CRAIG POTTINGER)

administration of Mayor c. G.
Cheshire during its first year in Of
flee, ending Wednesday.
On June 1, 1887 when the Chesh-
ire administration took office there
was outstanding indebtedness for
materials and supplies used by the
city during the previous year in the
amount of ,968.27, which in
cluded labor, fuel oil, gasoline and
other materials.
All Bills Paid
The Cheshire administration has
operated the city during the past
year on cash basis. All bills have
been paid promptly each month
and the year closed with no out
standing indebtedness for the per-
iod from June 1, 1887 to May 81,
1888, and with a cash balance on
hand of $2,1O3.34.
In addition to keeping the cur
rent expenditures on a cash basis
fund of $6,98782 has been ac-
cumulated from tax levy toward
the payment of the obligations out
standing on the first day of June
1897. This fund can be used for no
other purpose but the payment Of
these obligations at such time as
competent authority can de-
termine the legality of disbursing
this money.
Unless the validity of the pay
ment of such obligations is not
established before the next session
of the state legislature it is con-
templated that relief bill will be
introduced authorizing the payment
of the indebtedness by the city.
Refunding Completed
During the past year the city has
completed the refunding of $780,
600 in general obligation bonds
which extended the maturity dates
from five to ten years beyond the
maturity dates of the old bonds,
and accomplished an interest saw
ing of approximately $1,000 an
nually.
In addition to refunding the
whole general obligation bonds,
$4,000 of these bonds have been
redeemed during the past year and
the bonded Indebtedness of the city
has been reduced from $615,000 as
of June l, 1897 TO $3.50, 900 as of
May 81, 1888.
On June l, 1897, $48, ,0267O was
due on unpaid interest coupons of
general obligation bonds. During
the past year this indebtedness has
been reduced $41, ,O85.79 by redemp-
tion of unpaid coupons and 81, ,780.16
has been paid in interest on bonds
which matured in 1885 and 1886,
making a total of SOB, 8,865.95 that
the bonded debt of the city of No
gales has been reduced during the
past fiscal year. When the facts
of the situation are considered
this is really an exceptional
achievement.
On June 1, 1887 the general obi
cation bonds of the city of Nogales
we're quoted and could be purchased
at As and so cents on the dollar.
Today the best price that the city
of Nogales bonds can be bought is
IS cents on the dollar for extended
maturities, and early maturities
are quoted at from 80 to par
Paving Bonds
The paving bond situation is not
SO favorable, due entirely to the
fact that assef snents are delin
quent in the amount of 100000.
On June /, 1887 paving bonds
outstanding amounted to $105, 400
but during the past year this in
debtedness has been reduced to
$81, 100 by the payment of $24.300
of paving bonds. 49,.
In addition to redemption of
paving bondc, $7,234 has been paid
in interest. Of the outstanding
bonds $50, 900 is past due and pre-
sents a problem to the administra-
tion to accomplish payment with
out the necessity of an Exceeding
ly heavy tax levy.
During the past several years
since 1884 to date, the city has
levied total of $52,O53.46 for the
payment of paving bonds. To date
the only asset that the city can
show for this expenditure of tax
funds is the sight of the unfinish-
ed municipal building at Grand
avenue and Arroyo boulevard and
sixteen lots of doubtful value scat
tered throughout the city.
Summary
IN summarizing the achievements
of the present administration, dur
ing the past year, the citizens of
Nogales as whole should be par
ticularly proud of the results that
have been obtained, for city af-
fairs have been conducted in bust
nesS-like manner and on a cash !
basis The bonded Indebtedness has
not only been reduced materially
but it has also been organized in