Salt Lake Telegram | 1935-06-27 | Page 11 | Auditors Urge Interest Cuts on City Notes

AUDITORS URGE INTEREST CUTSON CUTSON CUTS CUTSON ON CITY NOTES Refinancing for Som Some Outstanding Outstanding- Paper Suggested A series of recommendations In Including including in- in eluding one calling for redemption of notes bearing higher r interest rates than Ihan are arc available on loans now is contained in a report ol of Wells Baxter certified fled fied public accountants supplementing supple a regular report on a special special ape ape- cial audit of Salt Sali Lake City books and records The supplementary report was re received received re- re Thursday by the city commission commission com corn mission and was ordered filed med City Auditor Samuel F F. Nicholls commented commented com corn favorably on the recommendations recommendations recommendations indicating an effort would be made to adopt them Higher Interest The auditors call attention to outstanding out standing Salt Lake City notes for tor bearing interest at 5 and 6 per cent and state stater Although these notes are payable payable payable pay pay- able in instalments in Ia view of ot the fact tact that they carry carry interest rates of ot 5 and 6 per cent it is suggested in view ot of the tc much lower interest rates at which the city is borrowing current funds that these notes might ht be bo paid in full fuU elf If this can be accomplished th the interest saving between the current interest rate and the 5 and 6 per cent applicable to these notes would possibly amount to 1000 a year year Among the notes are 2400 worth given iven by the city to the state of Utah for 2400 acres of land surrounding sur lur- rounding Mueller park They are year 20 notes bearing bearing- 5 per cent Interest Another block of year 10 notes was issued to buy land in th the artesian basin The auditors point out also that there now is no check between the city auditors auditor's office and the tho county treasurers treasurer's office on taxes due Salt Lake City It is explained the Uncollected uncollected uncollected un- un collected amount of taxes Is estimated estimated estimated esti esti- mated from year to year making it impossible definitely to fix the amount The auditors contend it should be made possible to fix the assets and they suggest two al alternative alternative alternative al- al plans Two Plans Outlined One plan provides for the county treasurer treasure t tp remit lt to S alt t Lake City t ta a state statement accompanYing each transmittal of the city's portion of taxes the statement to show the total assessed yal valuation atlon of Salt Lake county and Salt Lake City taxes owing to Salt Lake City ac according according according ac- ac cording to the tax taC rolls and including in including in- in eluding a summary of adjustments on tax rolls roUs affecting the assessed valuation of Salt Lake City The Theother Theother Theother other plan provides for the city auditors auditor's office to obtain the same data by examining the county treasurers treasurer's records The accountants asserted that the capital assets records are rather meaningless unless some attempt is made to provide for depreciation and obsolescence rather than the practice which has been followed irs IQ past years of writing g down assets periodically Reconstruction of the capital assets as ns as sets accounts was recommended to show depreciation to date on estimated estimated estimated esti esti- mated useful life of at the tho various fixed properties