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Show CITY BOARD CALLS IN WATER BONDS TO REFINANCE IMPROVEMENT INDEBTEDNESS The city water bonds will be redeemed April first and let to a Salt Lake Company as a result of the action of the members of the town board at their meeting held Thursday evening in the city offices. The redemption of the bonds and the refinancing of the water improvements indebtedness) was proposed by Trustee L. G. Clay on the advice of City Attorney, Sam Cline, and voted by the members mem-bers of the boiird. Advantages of the financial jug-i gling which took place last Thursday night are: 1. The reduction of interest on the bonds from six to five per cent. 2. An extension of the time of maturity ma-turity from ten to eighteen years. 3. Avoidance of the necessity of increasing in-creasing city taxes. In 1921 the town was bonded for $G0,000 to raise funds for the boring of wells and the installing of pumps. The bonds at six per cent interest were let with the provision that they could be redeemed in 1931 or continue till 1941 at the will of the city. A rate of five mills tax was ievied for pay- ment of the interest on the bonds and this year a sinking fund was to be established to guarantee the final payment pay-ment in 1941 if the city did not see fit to redeem them in 1931. At the meeting of the board last -V, week, it was pointd out that to estab lish this sinking fund it would be necessary nec-essary for the tax rate to be increased from five mills to eight mills. To avoid the necessity of making this increase in taxes, the town board voted to re tire the bonds at $48,000 and to let them to the Lauren W. Gibbs Company Com-pany on a sliding scale over a period of eighteen years at interest of five per cent. By this refinancing move, the town will accomplish the payment of the bonds within a slightly longer perio'I of time but without the necessity of a raise in the tax rate as the present five Mills allowed will handle the bonds within the required period. Other business of the meeting was the acceptance of the resignation of city clerk, Bessie Killam and the appointing ap-pointing of Letha Schow to take her place in the city offices. |
