Show Water I Fund Assured by TL Proposed Trust oL I fn cf W ity Officials Contractors I j Make Recommendations I f at Informal Meet I Salt SaIL Lake City Is assured a perpetual perpetual per per- water ater trust fund that will wUl take lare of or any demand for Improve Improve- within the next 34 years on the llie expansion program made Ic b by the bond Issue without costing an extra ollar lollar under a plan approved at an Ie formal meeting of or city officials and es of or contractors for the term short-term Issue Friday t No official action was taken at the All Its findings and recommendations are expected to be presented pre pre- formally to the city cHy commission commis commis- lion ion Tuesday N NUAL NAL AL FUND FUN PLANNED The plan as outlined b by City J. J Parle Parley White te In ion with Ith his schedule to pa pay off oH the issue beginning with the clev- clev nth year rear and extending U to and in- in the thirty fourth calls for a annual fund to be set et up from revenues of the water de de- de art ment The revenues will wm amount to annually it Is estimated From his amount approximately 3 expected to go eo for increased cx- cx of the department such as jumping and arid will be applied d n in Interest on the for the 10 years before retiring begins Mr White explained that over the year 4 period of the bonds occa- occa Ion lons will arise when improvements I Till ill be needed and acquisition of more eater ater rights will be necessary These can be met without a new or an increase In water rates y I- drawing on the trust fund lund he heK K out Mr Whites White's schedule of oC retiring the loan In annual payments 5 s approved at the meeting follows I First five years ears next olive five ive tars ears next five years cars 85 85 00 next live years ears next lye ive years cars 1250 0 and the thirty thirty- or l last St year car The question of or whether the city elty Ml Ill retire the term short-term oan aan b by paying the banks cash or over to them that sum In the tew lew Issue was discussed at the meet- meet ng but no official action was taken RATE EXPLAINED However It was pointed ou out that Inder the contract entered Into with lanks anks advancing the notes the city elty m not be able to obtain the highest lids ids on the small Issue IT if the banks hoose to receive payment according o 0 the We terms of the contract It Is 15 specifically stated In the con- con that the term short-term at 4 41 2 2 1 per ent would be replaced by the new sue at 4 per cent Any cash settle settle- lent would be made at the discretion f t the banks It was the sentiment of oC he be meeting It was as Indicated that the form of oC will likely become known at ate athe atile he ile e city commission meeting Tuesday If It then Ulen payment Is 15 made in new the city can take advantage ft the best bids on only the remain remain- ig 19 of or the new Issue Mayor John F. F Bowman did not the meeting leaving arrange arrange- lents for the Informal discussion to tr fr White and City Attorney Shirley Shu-ley I. I Jones The mayor stated howver howver how- how ver er that all decisions of the con- con would be subject to approval f I the Joint water committee The banks and brokerage e houses thich advanced the in term hort-term notes and which have he lie contract for the purchase Se of that mount of or the Issue are Walker Bank nd Trust company First Security Snow Goodart Co Edard Ed- Ed ard L. L Burton Co and the Na- Na ional lonal Copper ba bank |