The Daily Alaska Empire

The collections of the Juneau city sales and service tax has materially improved the city's financial position from the standpoint of bond retirement, Mayor Waino Hendrickson revealed today.

R. L. Shephard, Vice President of Grande and Co. of Seattle, which is handling the city's bond issues, recently wrote Hendrickson. "If receipts from collection of your sales tax continue at the current level, you will have sufficient surplus to call all of the then outstanding $113,000 of bonds of the 1948 issue at the first call-date (July 1, 1955) and $195,000 of the 1949 issue (April 1, 1956).

"In fact, unless you sell additional bonds in the interim, Juneau may well be in the enviable position of being debt-free in a relatively few years," he wrote.

Hendrickson pointed out that retiring the bonds on a short schedule will save the city nearly $50,000 in interest over a 20-year period.

$118,758.62 Collected

During the past year a total of $118,758.62 has been collected from the sales tax. This is all earmarked for bond retirement.

In the first quarter consisting of August and September 1950, after the tax went into effect, $22,669.48 was collected. The last quarter of last year realized $33,281.81. The first quarter of this year brought in $28,786.28 and the second quarter, $34,021.05.

Sales tax for the third is due for payment beginning next Monday.

Another Bond Issue Needed

Among the first business of the new city council, which is to be elected next Tuesday, will be consideration of a bond issue for street improvements, fire department equipment and for the completion of the new Municipal Safety Building this coming year.

Street improvements for next year are to consist of underground work on sewers and drainage, sidewalks and street paving.

Badly needed new equipment for the fire department, will, when put in operation, move the classification of Juneau up from a low Six to a Five rating for the purpose of establishing fire insurance rates.

This will reduce the rates paid by individuals and businesses and be a material saving to residents.

Funds not to exceed $300,000 will be needed to build the remainder of the Municipal Safety building to house city offices and have a permanent jail. The fire department section of the building is due for occupancy in late November or early December of this year.