Show Salt Sal Lake De Debt t Service Is 2600 Daily Daly I V V V By AL FERGUSON H Debt service charges incurred in opera ion tion of pf the city government will amount to ir f daily in 1936 fi To this will be added som something thing like pOO a day as debt service costs for city I schools These facts were revealed Saturday after Salt Lake City taxpayers' taxpayers duly qualified qualified qualified agents the city commissioners commissioners- made the first installment pt payment r of on the city's 19 1936 6 bond interest and maturities Members l of the city board of education are studying a plan to refinance of outstanding 5 per cent school bonds II IL successful they may reduce the debt service service service ser ser- vice charges for the schools All of the except 1375 paid by city commissioners was handed over to Walker alker Bank and Trust company lo to tobe be credited to the account of National City bank of New York City The 13 item was for express charges and insurance on of 6 of 1 pe per cent 1936 tax anticipation anticipation anticipation antici antici- pation notes issued to finance the city until tax revenue becomes available next fall Under an agreement signed in 1931 for forthe forthe the life of the commission the National V City bank beca became e Salt Lake Lak City's pay paying g agent on all aIr its municipal securities A AV V charge of 8 1 of 1 per pei per cent for handling bond coupons and 10 1 of 1 pe per pei cent for form m maturing turing bonds is made ma by the bank under under un- un under un un- der the t e agreement which was was' made part of the terms of a loan to the city at ata a time when it could not borrow v money locally on better terms Continued on Page 2 C Column lumn 4 V DEBT SERVICE IS 2600 DAILY Continued from front One Incidentally the record d discloses the city was compelled at the time it made ml the 1931 loan to pay pay net net netI I Interest rest of 75 per percent cent 69 per cent more more than it will ill m pay on the 1936 loan i Before making the initial 1936 payment commissioners discussed I advisability of ot abrogating the agreement agree ment I Commissioner George I D. D Keyser called attention to the fact that I he Is the only member of the board who was also a member of i ithe the commission in 1931 I I 1 v voted no when the contract was signed he said therefore I Isee Isee see nothing standing in our way l if w we wish to abandon the agreement Advice of ot City Treasurer Milton I E. E Lipman was similar It so happens that the agreement agreement agreement agree agree- 1 ment has worked out fine said Mr Lipman I 1 doubt dO if we could make i a a better deal today But at any anytime anytime time you wish w we are are at liberty to tomake tomake tomake make a change Mr Lipman called attention to the fact that the bank waives col co- collection collection col- col lection lecHon charges when Salt Lake City's money to meet interest and principal arrives in New Nev York City 20 days in advance of the paying date Of the 25 paid out by the i city commission will go to pay Interest for six months on the i 1936 tax anticipation notes goes to pay for fOl handling charges charge on the new tax notes and wipe out a difference between principal and amount on deposit in New York City to handle this account will mature an equal amount of 1934 tax anticipation notes will wUl offset Interest and serial payment pay pay payments meats ments due on an issue of four per cent refunding bonds will wUl pay Interest due on Water water water wa wa- ter street cemetery and other general general gen gen- eral obligation bonds February 1 1 and will meet serial payments pay pay- men mont ments due on a similar type of bonds bands February 1 I while the remainIng remainIng remaining remain remain- ing 1375 will be used as st st. stated ted above to pay express charges and insurance incurred in sending the 1936 tax notes to New York City In addition to o the payment pay paY-I ment meat just m made de by city comm commissioners commissioners commis commis- l 1 they will will before the end of the current year year pay payout out an additional additional ad ad- for bond in interest interest In- In terest and and retirements Also Alao for interest and aha other ther expenses in incurred incurred in- in in connection with issuance In-I In of tax anticipation notes I Thus a a. total of or an ani average of about per day I of the taxpayers' taxpayers money will go for fori payment of Salt Lake City's debt service costs coats during the ensuing eleven and a half haf months |