OCR Text |
Show In Article III it was indicated that financing might be done by paying a "service connection charge and the balance of the necessary money raised by issuing bonds. If 600 houses pay $1.50 eeach for a connection oharge then $90,000 of the total estimated cost of $288,400 could be raised without the issuance of bonds. Three 'kinds of bonds imight be issuued to raise funds to pay for the $198,000 balance needed to construct con-struct the sewer. That is, General Obligation Bonds, Special Improvement Improve-ment Bonds, and Revenue Bonds. General Obligation bonds might be issued to defray a part of the cost of the outfall sewer trunk line (say from 4th West and 1st South to the disposal plant) and part of the cost of the sewage treatment plant. These two units of the sewer system are beneficial to all the residents of Pleasant Grove regardless regard-less of how soon any particular residence may hook onto the sewer and therefore justifiably all the property in Pleasant Grove should stand a part of the cost. Special Improvement Bonds might be issued to 5, ay for the installation of the house service lines whioh run from the main sewer trunk lines to the property lines of the individuals being served by the sewer. This way the cost of the individual service line in the street to the property line is assessed assess-ed against the properly abutting the sewer. Revenue Bonds could be issued to provide the balance of the funds. General Obligation bonds might be issued in the amour-1: of $25,000 payable over a 20 year period. This money could be obtained at a very low interest rate. Special Improvement bonds might be issued in the amount of $23,400. These bonds carry a higher rate of inter-eest inter-eest than general obligation bonds and are a direct lien .against the property assessed. They can be paid 'off over a ten year period by a front footage assessment. The balance of the needed funds, namely $150,000, can be secured by issuing Revenue bonds. By making a monthly service charge of $1.50 for eaoh home or family unit served and a proportional amount for schools, business houses, etc., the $150,000 in Revenue bonds can be repaid in 20 years from the net revenues of the sewer system monthly service charges. Revenue bonds are not a lien against property and no taxes against property can be assessed to repay Revenue bonds. Only the net revenues from the system itself are pledgee! to repay the bonds. The above method of financing the sewer is equitable and should not put too great a burden upon the citizens of Pleasant Grove who will continuously be receiving the benefits of a sanitary sewer system. sys-tem. This is the fourth of a series of articles written by Caldwell and Richards, a civil engineering firm of Salt Lake City. |