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SEWICKLEY S BOND ISSUE
A Statement by the Council
October 8, 1928.
To the Taxpayers:
Your Borough Council have passed an ordinance
which provides for submitting to the voters at the election
to be held on November 6th, a bond issue amounting to
$339,500.00, and felt they (the taxpayers) should be
thoroughly apprised of the reasons for it.
The items in this bond issue are as follows:
Railroad Improvement $125,000.00
In 1916a contract was entered into between the
Pennsylvania Railroad and the Borough of Sewickley, which, among other things, provided that the
Borough of Sewickley should pay to the Railroad
the sum of $125,000.00, for the relocation of their
present tracks, the elimination of dangerous grade
crossings and the acquisition by the Borough of certain railroad property, which comprises the present
right of way through the Borough together with that
land between Chestnut and Walnut on part of which
the station now stands.
Water Works Improvement $130,000.00
This improvement consists of the reconstruction
of the Water Works System, of which the Railroad pays $83,792.00; the erection of a new pumping station, nitration plant and water softening plant,
as well as a larger main running from the new
pumping station to the reservoir.
Garbage Plant—located across the river
near the bridge $ 40,000.00
Storm Sewers—on Beaver Street 30,000.00
Lighting System—Beaver and Broad
Streets 5,000.00
New Fire Truck (Balance) 9,500.00
Or a Total of $339,500.00
From time to time, as it became necessary to make
certain of the improvements referred to, your Council
was able to finance them as a temporary expedient, feeling that in handling the matter that way, it was more advantageous to the taxpayers than had these items been,
provided for in a bond issue at the time of the expenditures.
Council issued Certificates of Indebtedness from time
to time to finance these various items, but the time has
now arrived to fund these items as a further advantage
to the taxpayers.
The ordinance providing for the payment to the Railroad of $125,000.00, according to advice of the Attorneys for the Borough, is a valid and binding obligation
of the Borough contracted in 1916, and bonds could be
sold for same without the vote of the people.
The Water Works System could also issue bonds without the vote of the people but the lien would be restricted
to the Water Works property and, therefore, in the judg
ment of Council, not so salable. After mature judgment, it was deemed advisable to ask the voters to place
all these items in one bond issue, which will be more
readily salable, and your Council feel they have done
the best they could in handling these various projects, all
of which are for the comfort and happiness of the people
in Sewickley.
It will be necessary to increase the taxes to a reasonable
degree, in order to provide interest and sinking funds,
and, therefore, the matter is submitted to the voters in
order that they may either approve or disapprove this bond
issue.
The Water Commission out of its rents will pay interest and sinking fund on $130,000.00 of this issue.
Should the taxpayers not approve this issue, your Council will then be forced to proceed as follows:
FlRST: The Water Commission will authorize
and sell a bond issue secured by the water works
property for such price as can be secured,
amounting to $130,000.00. These bonds will
be at higher rate of interest.
SECOND: The Borough Council will proceed to
sell for the Railroad improvement (under the
ordinance passed in 1916) bonds for
$125,000.00.
This would leave unfunded the items of:
Garbage Plant $40,000.00
Storm Sewers 30,000.00
Lighting System 5,000.00
Fire Truck . . 9,500.00
$84,500.00
and the taxpayers would be confronted with a heavy
increase in the millage to pay same, or carry them at such
rates of interest as could be arranged. The rate of
interest naturally being higher than bonds would bear.
Whereas, by funding the whole amount, taxes will
only be increased an amount to pay interest and the sinking fund over a period of years.
It is the desire of Council that the public should have
all the facts and this statement is made for that purpose.
Respectfully submitted,
O. S. RICHARDSON,
Burgess.
JOHN C. HITESHEW,
Secretary.
CHARLES RICHARDSON,
President of Council.
MEMBERS OF COUNCIL
C. D. Bevington R. R. Kuhn
J. C. Chaplin W. Booth Miller
W. W. Cunningham Charles Richardson
Edward Ellerton Don Rose
J. A. Hutchinson
