City’s Water Funding Hits a Wall
High-interest demands from local banks threaten the city's $250,000 project to upgrade the Clover Creek water system.
The story, cleaned up
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The water scheme of the administration, by which it desires to spend $250,000 to fix up the well and Clover Creek systems, may be knocked in the head by reason of the failure to get the money. Bids were opened for the sale of the water fund warrants by the controller this afternoon. There was a joint bid by the National Bank of Commerce and the Fidelity Trust Company offering to buy the warrants and pay $250,000 for them, but stipulated conditions which the city will not be able to comply with. The banks demand six per cent interest and that the legislature of the state pass a law making the securities good collateral for depositories as long as they hold any of the warrants, which would run for 20 years. Assistant City Attorney Baker says he thinks it will not be possible for the city to comply.
“The water scheme of the administration... may be knocked in the head by reason of the failure to get the money.”
Municipal infrastructure funding remains a point of friction between public needs and private banking interests in Tacoma, mirroring long-standing struggles over who controls city debt and vital water resources.
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