The Bluffton news. [volume] (Bluffton, Ohio) 1875-current, 1948-03-11
new BOND ISSUE
WILL SPEED LIGHT
PLANTS PROGRAM
Additional Sum of $4,000 Is
Made Available For I'M
provements
Sale of Bonds to Toledo Firm
Approved by Council Mon
day Night

Financial stringency of the NUM-
cipal light plant was solved Monday
night at a joint meeting of the town
council and the board of public af-
fairs, when councilmen approved a
board recommendation to accept a
proposal of Stranahan, Harris and
Co, of Toledo, providing for a sup
elemental issue of $4,000 in revenue
bonds to complete an expansion pro-
gram at the plant. Income of the
plant from it's electric current pro-
duction is pledged for payment of
the bonds and interest.
Contract for the additional $4,000
in bonds will be the same as that
under which Stranahan, Harris and
Co. in 1916 underworld a $125,000
revenue bond issue, with the excep-
ton that the new bonds will bear
a 39o rate of interest. The previous
issue of $125,00O had an interest rate
of 296.
Issuance of the additional bonds is
possible inasmuch as the plants net
earnings in production of electric
current in 1945, 1916 and 1947 ex-
ceeded $4,000 each year, a spokes-
man for the Toledo bond firm said.
Complies With Contract
Under provisions of the contract
for the $t25,O0O bond issue, addition
al money could be borrowed at any
time that earnings in electric cur
rent production for the preceding
three years showed a 140 per cent
earnings ratio, so far as payments
on bonds and interest were concern
ed.
In considering the earnings factor
of the plant for revenue bonds, only
light plant operations are reckoned
and the financial status of operation
of the municipal water works II moi
involved.
The new bond issue of $4,000 viii
be retired in Is years, on the fol.
lowing schedule: $4,000 for -four
years; $4,000 for seven years, and
$4,000 for four years.
Has Ability To Pay
Peak expenditure on the bond debt
in any one year will be $14,010 n
1850, including principal and interest
payments amounting to S8,140 or
the S125,000 issue and $3.50 on the
$4,000 issue. This figure of $14,01(
lis considerably under the three-yeal
plant earnings average in excess ot
$4,000, it was pointed out.
The higher interest rate of 3eo OF
the new issue of $4,000, one pei
cent more than for the original issue
of $125,000, is due to a higher in
terest trend in the bond market, i
was explained.
Issued as supplementary bonds
under the same contract covering th'
original issue in 1916, it was un
necessary to advertise the bonds
under the Ohio law regulating
revenue bonding.
Cost of the legalities involve'
prior to bond issue, printing of tn,
bonds etc, will be paid by Stranahan
Harris and Co.
Proceed With improvements
With the additional issue of s75,
900 available, the board is in position
to proceed with improvements at tn
plant, handicapped by lack o
finances.
Now that the money is in process
of collection, contract can be let 70
construction of building addition
to house a new boiler, to be deliver
ed in April.
Low bid for construction of tn
building submitted H. B. Tuttlt
Lima contractor, was $30,800.
Need of the enlarged building an
purchase of an additional turbine t
increase the plants electrical genel
ating capacity We're cited i
December by r. Fl. Marker, of tn
Toledo engineering firm of Marke
Emory and Marker, as the princip:
factors resulting in the need of NOR
money for the plant expansion prt
gram.