Minutes 06/13/1933 - Laserfiche WebLink

Home Browse Search

In view of-the more important duties placed on the Director of Public Wel- fare, I recommend that his salary be increased from $325.00 to $350.00 per month, and that he be furnished a car for his use in the performance-of his duties for the Oity. The increase in pay and cost of oar can be orovided from ~he savings this year in salary of the physician to the Poor. Your~authority t~ transfer the unused portion of the salary of the Physician to the Poor for this purpose is requested. This change willzesult in a saving to the Oity, beginning January 1st, next, of $1,500.00 per year, and at the es~me tiros provide sufficient force to properly look after this work." Notion of .l~r. Hutohins to concur in the Nanager's reoommendation was adopted. The following oo~nunication from the Oity Attorney was read: "According to notice sent to me by the Oity Olerk ~and Auditor, a communication o~ the 0ity Nanager that h~d re£erenoe to reduction of $46,O00.100 per ~num-now paid to the B~- ing Fund ~ the Water ~pmrtme~t to 932,000.00, was re~erred to me as to the legality of the I find that the present outstanding bonds ~ the ~te~ Department ~ount to $2,~50,00~O0. Of these bonds, $2,~00,000~00 were issued on December l, 1918, to beene due thirty years thereafter, on Dec,be= l, 19~8, .a~ the ~em~ining $250,000.00 were issued on Augo. st l, 192~, to become due thirty years thereafter, on AU~St t, 1954. ~The first issue was made for the pure,se of the wate~ plant, ~d the 0ity, ~der the agreement of purchase, was requ~ed to permit the holders of the Portsmouth, Ber~ey ~ ~fo~ Water 0crop,ny Bonds to exohmoge the s~e~for city bonds a~ any t~e Drier to January l, 1929. Bonds in the s~ of 942,500.00 we=e not exchanged and hence the bonds of the ~ate~ Department fall due as fellows: P. B.& B. ~te~ 0o. Bonds $~2,500.00 $ 5% on Nov. I,-1~4~. 0ity Wate~ Bon~s --- $2.05Y",500.00 $ 5~ on Dec. 1, 19~. Oity Water Bonds ~ ~ $~0,000.00 ~ ~ on Dec. l, 19~8. Oity lKate= Bonds --- 9250,000.00 $ 5~ on A~. l, 195~. The two issues of bonds were had under the provisions of Olause B of Section 127 of the Oonstitution of VLvginia, and were approved by a vote of the people, and under the provi- sions of this section, these bonds are not included within the limitation of 18% of the ~m~es- sod valuation of real estate in the 0ity unless "from and after a period to be determined by the 0ity 0oonoi~, not exceeding five years from the d~te of such election, whenever and for so long as such unaertaking faiIs to produce sufficient revenue to ~y for cost of operation and administration (including interest on bonds issued therefor, and the cost o~ insurance against loss by injury to persons or property), and an annual amount to be covered into a sinking ~uud sufficient to pay, at or before maturity, all bonds issued on account of said undertaking, all such bonds outstanding shall be included in determining the limitation of~ the power to incu~ indebtedness~. By an act approved on Earth lC, 19~2, the charter o£ the Oity was amended whereby a Bo~rd of Sinking Fund Oommissioners was established and~the following requirement was placed upon the Oity: "Section 80. For the redemption at maturity of such bonds, excepting s eria~ bonds, as may have been heretofore issued by the Oity of Portsmouth, it shall be the duty of the council of said city to provide and the 0ity Treasurer to set aside annually a sum equal to one and one-half per cent of the p~r value of said. bonds; and for the redemption at maturity of such bonds as may hereafter be issued by ~he 0ity of Portsmouth, it shall be the duty of the council of sai~ city to provide and the city treasurer to set aside annually s sum sufficient to retire said bonds at maturity; and the suoerintendent of the water department shall pay un- to the city treasurer annually a sum equs~l t~ one and one-half per cent of the par value of all outstanding bonds, excepting serial bonds~ i~sued for the purpose of providing for and purchas- ing the water works property of the Oityo On July l, 1923, the Oi~y of Norfolk took over, pursuant to a oon~raot with the Portsmouth, Berkley andSt~Tfolk Water Oomoany, the water works property in Berkley a~d South Norfolk at s~ appraised v~lue of $405,000~O0. This reduced the revenue of the plant approxi- mately by one-sixth. In the latt~E part o~ 1923, the 0ity preoared to Sell 9362,000.00 Harrison Ward Improvement Bonds and $&19,000o00 Washington Ward I~provement Bonds and applied to Nr. John 0. Thompson, an attorney of New York, who made a specialty of passing upon the ~alidity of muni- cipal bonds, for his legal opinion of the ss~me. Before ~Lv. Thompson would approve of the bond issue, he reGuired the city to set up the Wats~ Bond Sinking ~undand determine the amoun~ of money to be paid therein. As a portion of the plant producing approximately one-sixth of the income had been ~ransferred to.the 0ity of Norfolk, he ecuzre~ that the proceeds from the sate after deducting 912,000o00 for expenses, be oai~ to the sinking Fund. He also required the sum of $60,057. to be transferred from the earnings of the ~ater Department to the Sin~ing F~nd. This he determined was necessary before he would approve the bond issuance for the He, risen and Washington Wards Three resolutions of the 0ity Oouncil were pas~ed putting this into effect. Two were passed ~n December 11, 19~3, and one of February ~ll, ~92~. Under one of the resolu- tions of December ll, 1923, the sum of $428.000.00 was converted into the Sinking Nr. Thompson then worked out the ~ollowing scheme for the ~ater Sinking ~und: That the Oity pay 2.y% of the net water debt remaining due at that time, less the amount of interest earned on the Sinking Fund, as follows: £mount of bonds ..... 92,y00,OO0oOO Amount of Sinking Fuhd- ..... $2,~,320.00 Net Debt - - 27~ cZ net debt o~ $2,~24,~20.00 ....... Interest @ ~ on $~75,680 (~nking ~und) ........ Annual Payments .......................... 60,057.00 1R, · ac 4-1,029.$0