A County Asks to Refinance Its Credit Card

In the proceedings of the county commissioners, which appears in this issue of The Miner, is a list of the judges appointed for the special election on the bonding matter to be held throughout the county on Tuesday, Sept. 7.

This election is entirely separate from the local option election to be held in the incorporated towns on the same date. It is for the sole purpose of voting on a prospective bond issue of $200,000, to be used solely for funding the present outstanding current expense fund warrants, together with accrued interest thereon. This same proposition was voted on and carried at the last general election, but owing to a slight technicality the election, in so far as it pertained to this particular matter, was void. Hence the necessity of holding another at this time.

The indebtedness which the commissioners are seeking to fund first started in January, 1899, and has been gradually increasing since that time. It is one of the conditions that seem to apply to all counties when they are passing that particular stage of their development wherein the population is increasing very rapidly and out of all proportion to a corresponding increase in taxable valuation. Necessarily the expenditures during such a time are very heavy, a great deal having to be expended in sections that are productive of practically no revenue; and yet, of course, these expenditures are necessary to provide not only for the immediate needs, but for the future development of the county.

This county has now reached that size, both in population and assessable value, where it seems that it might be maintained on very nearly a cash basis if once we succeed in getting the present indebtedness in a form that does not place our warrants at a disadvantage with outside investors. At the present time there are outstanding approximately $183,000 in warrants, bearing 8 per cent interest, and upon which interest has accrued to date amounting to approximately $18,000. This entire amount can very easily be turned into a bonded indebtedness at a rate of interest not to exceed 4½ per cent. It is possible that it will even go as low as 4 per cent. However, taking the larger figure as a safe estimate, it can be readily seen that we would be saving annually, in interest alone, approximately $6,400; and in addition to this our indebtedness would be in a form that would not impair the general financial standing of the county abroad. Further, it would be in a condition that it could be redeemed after the expiration of 10 years, in amounts that would not necessitate a heavy tax being levied for such purpose for any particular year. No portion of it can be used for any purpose whatsoever other than for the funding of the indebtedness already in existence.

On the ballots that will be used at this special election there will be submitted two propositions — one for validating the present outstanding current expense fund warrants, and the other for voting funding bonds to redeem the warrants. It is necessary for technical reasons that these be voted upon separately. A vote cast for one of these propositions without the other would be null and void.