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Story
May 5, 1923
The Bismarck Tribune
Bismarck, Mandan, Burleigh County, Morton County, North Dakota
What is this article about?
City Engineer T. R. Atkinson details the $706,928 cost for a new Bismarck water system, including 1,500 connections, financed by $225,000 bonds and property assessments. Annual tax increase minimal at $2.31 mills; voters decide May 14. Addresses concerns on hydrant rentals and lost taxes.
Merged-components note: Continuation of article on new water plant costs and financing.
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TOTAL COST OF NEW WATER PLANT AND METHOD TO BE USED IN FINANCING PROJECT
Editor's Note: This is the second article in a series discussing the water issue. These articles are prepared by City Engineer Atkinson and reflect the convictions of a majority of the city commission upon the proposition which will be before the voters May 14.
By T. R. ATKINSON.
City Engineer.
The total cost of a complete new system as heretofore outlined, including 1,500 service connections from the mains to the curb cocks, all expense connected with taking up and relaying paving and every item entering into the construction cost is estimated by the city engineer at $706,928.
I desire to add to this statement that Mr. L. P. Wolff, consulting engineer of St. Paul (who has had more experience in this class of work than any other man in the northwest and who stands high in his profession), has had the estimate of the city engineer submitted to him and advises that he believes the contracts can be let for a cost not to exceed this estimate.
Deducting from the estimate cost of......$706,928.00
The bond issue of..... 225,000.00
Leaving ...... 481,928.00
which will be assessed to lots. For assessment purposes I have assumed that a twenty-five foot lot in the business district should be assessed the same as a fifty-foot lot in the residence district on the theory that a twenty-five foot lot in the business district generally has as much value in personal property thereon which will receive fire protection as the ordinary fifty-foot lot in the residence district. On this assumption the cost to each fifty foot lot abutting on water mains will be $109.28 and spread over a period of 20 years with interest at six per cent, the average annual payment, including interest, would be $8.74. The remainder would be spread over lots not abutting on mains the average annual payment including interest on these lots not abutting on mains being from 24 cents to $3, depending on the distance these lots are from the proposed water mains. Under this plan a corner lot would be assessed no more than an inside lot. The total bonded indebtedness of the city, aside from school bonds, is $35,000. There is only one city in the state in the same class as Bismarck, where the total mill levy for school and city purposes is less than in Bismarck. I give below the total mill levy for school and city purposes in several cities in the state in 1922:
Bismarck ... .. . . ...... .. .$35.63
Devils Lake. . ......... . .. 36.80
Dickinson .. . ... .. ..... . .. 35.94
Fargo 40.20
Grand Forks ..... .. 39.90
Jamestown......... . 38.24
Mandan . .. ....... .. 30.30
Minot ....... . 48.63
The total average annual additional mill levy caused by the issuance of $225,000 of five per cent water works bonds on the present assessed valuations of the city will be 2.31, so that any taxpayer will have his taxes raised only $2.81 per year on each $1,000 of assessed valuation.
As the city grows, as it is bound to from year to year the cost for each $1,000 of assessed valuation will decrease. However, it is proposed that this bond issue will be paid out of the revenue derived from the sale of water.
The argument is made by some that if a new water works system is constructed the city will be obliged to pay the Bismarck Water Supply company the hydrant rental on 95 hydrants at $101.25 amounting to $9,618.75 annually. Inasmuch as the company's contract with the city has been broken by the company we do not believe that the company could enforce this part of the contract. Furthermore it is not believed that the company would attempt to operate its plant, pay maintenance expense and taxes amounting to $10,882.35 per year, for a gross operating income of $9,618.75.
We also hear the argument that the city will lose the taxes now being paid by the company. Of the above amount there is due the city $8,270.58, the remainder being county and state taxes. If the present rate of $101.25 hydrant rental paid the company is upheld by the courts, and a charge of $40 per hydrant per year is paid to the City Water Department for hydrant rental, the city would save $61.25 on each of the same number of hydrants of its own, or 95 hydrants at $61.25, a total of $5,818.75, and when the cost of boiling water is taken into consideration and the item of spring water bought and the further fact that we are to have a real system and real hydrants, we do not believe the city will lose a penny in taxes now derived from the water company, if a new system is constructed.
Editor's Note: This is the second article in a series discussing the water issue. These articles are prepared by City Engineer Atkinson and reflect the convictions of a majority of the city commission upon the proposition which will be before the voters May 14.
By T. R. ATKINSON.
City Engineer.
The total cost of a complete new system as heretofore outlined, including 1,500 service connections from the mains to the curb cocks, all expense connected with taking up and relaying paving and every item entering into the construction cost is estimated by the city engineer at $706,928.
I desire to add to this statement that Mr. L. P. Wolff, consulting engineer of St. Paul (who has had more experience in this class of work than any other man in the northwest and who stands high in his profession), has had the estimate of the city engineer submitted to him and advises that he believes the contracts can be let for a cost not to exceed this estimate.
Deducting from the estimate cost of......$706,928.00
The bond issue of..... 225,000.00
Leaving ...... 481,928.00
which will be assessed to lots. For assessment purposes I have assumed that a twenty-five foot lot in the business district should be assessed the same as a fifty-foot lot in the residence district on the theory that a twenty-five foot lot in the business district generally has as much value in personal property thereon which will receive fire protection as the ordinary fifty-foot lot in the residence district. On this assumption the cost to each fifty foot lot abutting on water mains will be $109.28 and spread over a period of 20 years with interest at six per cent, the average annual payment, including interest, would be $8.74. The remainder would be spread over lots not abutting on mains the average annual payment including interest on these lots not abutting on mains being from 24 cents to $3, depending on the distance these lots are from the proposed water mains. Under this plan a corner lot would be assessed no more than an inside lot. The total bonded indebtedness of the city, aside from school bonds, is $35,000. There is only one city in the state in the same class as Bismarck, where the total mill levy for school and city purposes is less than in Bismarck. I give below the total mill levy for school and city purposes in several cities in the state in 1922:
Bismarck ... .. . . ...... .. .$35.63
Devils Lake. . ......... . .. 36.80
Dickinson .. . ... .. ..... . .. 35.94
Fargo 40.20
Grand Forks ..... .. 39.90
Jamestown......... . 38.24
Mandan . .. ....... .. 30.30
Minot ....... . 48.63
The total average annual additional mill levy caused by the issuance of $225,000 of five per cent water works bonds on the present assessed valuations of the city will be 2.31, so that any taxpayer will have his taxes raised only $2.81 per year on each $1,000 of assessed valuation.
As the city grows, as it is bound to from year to year the cost for each $1,000 of assessed valuation will decrease. However, it is proposed that this bond issue will be paid out of the revenue derived from the sale of water.
The argument is made by some that if a new water works system is constructed the city will be obliged to pay the Bismarck Water Supply company the hydrant rental on 95 hydrants at $101.25 amounting to $9,618.75 annually. Inasmuch as the company's contract with the city has been broken by the company we do not believe that the company could enforce this part of the contract. Furthermore it is not believed that the company would attempt to operate its plant, pay maintenance expense and taxes amounting to $10,882.35 per year, for a gross operating income of $9,618.75.
We also hear the argument that the city will lose the taxes now being paid by the company. Of the above amount there is due the city $8,270.58, the remainder being county and state taxes. If the present rate of $101.25 hydrant rental paid the company is upheld by the courts, and a charge of $40 per hydrant per year is paid to the City Water Department for hydrant rental, the city would save $61.25 on each of the same number of hydrants of its own, or 95 hydrants at $61.25, a total of $5,818.75, and when the cost of boiling water is taken into consideration and the item of spring water bought and the further fact that we are to have a real system and real hydrants, we do not believe the city will lose a penny in taxes now derived from the water company, if a new system is constructed.
What sub-type of article is it?
Civic Proposal
Public Finance Explanation
What keywords are associated?
Water Plant
Bond Issue
Property Assessment
Mill Levy
Hydrant Rental
Bismarck Water Supply
What entities or persons were involved?
T. R. Atkinson
L. P. Wolff
Where did it happen?
Bismarck
Story Details
Key Persons
T. R. Atkinson
L. P. Wolff
Location
Bismarck
Event Date
May 14
Story Details
Outlines total cost of new water system at $706,928, financed by $225,000 bond issue and assessments on lots; compares tax levies with other cities; argues against concerns over hydrant rentals and lost taxes from Bismarck Water Supply company.