Illinois Valley news., October 31, 1952, Page 2, Image 2

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Retain Honest, Efficient
City Government in Cave Junction
BY RE-ELECTING
FOR MAYOR
FRED SALVAGE
FOR COUNCIL
NETTIE FARLIEN
G. C. TILLERY
For the past two years your city government has been
burdened with attempting to pay off a staggering water bond
issue. To finance a water system already found to be inade­
quate 6 percent bonds were purchased when they were avail­
able at a lower rate of interest and now YOU, the taxpayer,
must pay the difference.
Do you know that a strictly revenue bond, as used for our
water system, discounted, bearing I'1 .interest, actually costs
more than 4'* ?
A $100 bond, payable in one year, discounted at 2 and
bearing 4"*’ interest per annum actually costs $6, $4 interest
and $2 discount. The discount leaves only $98 for the project—
thus the $100 bond payable in one year would cost $6 interest
and discount.
This is the costly type of bond sold to finance the City of
Cave Junction water system. These bonds are re-paid out oi
revenue.
ft &
More sound and logical methods of paying off a bond
issue were available—by front footage assessment plus a
hookup charge and balance out of revenue, or an assessment
against the property in the district or city.
Under present conditions Cave Junction water users pay
the entire cost through revenue bonds and property owners
in or near the city benefit—free of charge. Part of the burden
should be paid by all property owners benefiting.
We further believe 4 interest is excessive for municipal
bonds, and that they should not be discounted.
•
In the very near future Cave Junction will install a sew­
erage disposal system. It’s the intention of your present ad­
ministration that the mistakes made in the financing of the
water system by the previous administration will not be
made again.
When you’re given the opportunity of voting for a sew­
erage disposal bond issue make sure part of the burden is
placed on those who benefit by increased valuation of their
property. Don’t make only the users pay the bill through
a revenue bond.
Common sense judgment is also needed for such pro­
jects now in the planning stage as Main St. sidewalks
and curbs, street numbering and in other activities planned
by your city administration with the aid of the planning
commission to keep pace with our ever-expanding city.
Insure a Sound, Business-Like Handling
of City Affairs
REMEMBER, TUESDAY VOTE FOR
102 ix] Nettie Farlien