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August 13th, !gMs.
<br />
<br /> The. item of $92,692.27, as of Dec. 31st, included $20,000.00 received from the Virginia Elec-
<br />
<br /> t325,656.05 and disbursements were $3~4,732.20, leaving a cash deficit for the year, of
<br /> $19,07~.15; '
<br /> ~e s.um of $2S,718.53, paid to the Federal Government in
<br />be eliminated in 1935. ~s~z~at~ng the cash balance at the end of 1935, by using
<br />utes, deducting ~he $19,0y6.15 deficit from the $28~18.53 h~retofore oaid the Government,
<br />indicates a cash balance at the end of 1935~ of $9,6~2.~7~.
<br />
<br /> OPERATING RESULTS FOR 1935
<br /> (By Superintendent Davis)
<br /> ~The estimated Water Department earnings over estimated expense for
<br />the year amounts to ~Oout $3E,OO0.00 which is -only a reasonable ar~uuaXsurolus, having in mind
<br />that the revenue may not meet expectations,that there are units in the wa~er works system
<br />forty-seven years old, which may, an~ probably will require replacement or extensive reoairs,
<br />and tb~t additional mains required each year should be paid for out of current revenue.~
<br />
<br /> NATION.~L BOAJ~ OF FIRE ~NDERWRITERS.
<br />
<br />contains these comments: Reoort No. 269 of the National Board of Fire Underwriters, July,1935,
<br />
<br />$1000.00 per year,
<br />earnings.
<br />
<br /> "Cbns!derable sections are supplied by 2'incho. ipes
<br /> and lack adequate fire pro~ection." ~Hydrant spacing
<br /> is wide."
<br /> ~Fire flow tests made in Ma~ch, 1935, with 65 pounds
<br /> station pressure and the stand oipe closed, but other -
<br /> wise under normal ooerating conditions, indicate that
<br /> quantities (of water) available in the principal mercan-
<br /> tile district are inadequate."
<br />
<br /> 1934 BOND ISSUE,
<br /> Amortization of the $25,000;00 bond issue of !93~ will require
<br />beginning in 1938 end continuing for twenty-five years, to be paid from
<br />
<br /> SINKING FUND
<br />
<br /> In order to make the l0 ~ reduction in water rates, which reduction
<br />became effective in 1933~ snnual payments to the' Sinking Fund were reduced from $~6,000.00 to
<br />$33,500°00. At the same time, the Manager, s report to the Council stated::
<br />
<br /> "These reductions will reduce the income of the Water
<br /> Department approximately $34,000.00 per year. This will
<br /> absorb all of the present surplus of the Water Department
<br /> and the recommended reductions in payments to the Sinking
<br /> Fund. The annual payments of ~27,351.00, plus 5% interest
<br /> to the United States Government, for property purchased
<br /> several years ago~ will be completed nex~ year (1934)
<br /> which will' make this amount available after 1934, for im-
<br /> provements to the property or in any way desired.~
<br />
<br /> In this connection, on July 21st, 1933, Thompson, Wood & Hoffman,
<br />New York Bond Attorneys, advised the City Manager, that they could not recommend an annus~
<br />payment of less than $33,500.00, assuming that the F~nd would continue to earn ~% pe~ annum.
<br />They again pointed out that a large portion of the Sinking Fund~-was represented by cash held
<br />in local b~uks, and desired to know the amount paid by the banks on such deoosit's, ~hich In-
<br />formation was desired to enable them to arrive at the correct earning Dower'of the Sinking
<br />Fu~d. ~
<br />
<br /> On July 2hth, 1933, the Manager advised the Attorneys that if the
<br />e~,rnings of the Fund went below 4%, payments would be immediately increased, to take care of
<br />the deficiency.
<br /> On July 27th, 1933, the Attorneys advised the City Msnager that an -
<br />nual payments of $33,500.00 would ~e sufficient for the present at least. The Attorneys s!so
<br />advised that, if in the future~ the interest received on the SinkingFund is actually tess
<br />than 3 3/4%, it wo~ld, be necessary to revise the amount paid into the Sinking Fund, and t_h~t
<br />if the increase from the ~ater Department sho~d not be sufficient to make the Sinking Fund
<br />requirements, then the Water Bonds would i~mediately become chargeable against ~he Bonded In-
<br />debte~,ess of the City.
<br /> Reference is made, at some length, to the Sinking Fmud, because this
<br />is an important item, in considering the question of reducing the earnings of the Water De -
<br />partment.
<br /> REDUCTION IN P~TES.
<br />
<br />If the reduction to
<br />suit will be a loss
<br />
<br /> There are 6,540 consumers now paying at the rate of $2.70 per quarter.
<br />$~.50 is made,.and if consumers keep w~$h!n the proposed minimum, the re
<br />in revenue of $5,232.00 per annum, distributed as follows:
<br />
<br /> In Portsmouth $ 3,596.00
<br /> In Norfolk County 510.00
<br /> In Suffolk _l_~l 126o00 $ 5,232.00
<br />
<br />
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