Financing Installation of New Water Mains in Cleveland
The city of Cleveland, O., contemplates a change in its method of financing the installation of new water mains in city streets, and, at the instance of Utilities Director Farrell, the city council is to be asked to confer the necessary authority to inaugurate the new system, which will allow assessment against abutting property for the cost connected with laying new mains. Under the method now in effect, the city pays for such improvements from general water works bond issues under guarantees that its investment will yield 6 per cent. In the case of furnishing water for new allotments, companies have been required to make deposits of the entire cost of the improvement. The deposits were returned as soon as the total water rents approximated 6 per cent. It is proposed in future to install new supply mains, as distinguished from the large distribution mains, which will still be paid for by the city, upon petitions signed by at least half of the property owners on any street, and the lot owners may either immediately pay the cost of the work, less a 10 per cent, discount, into the city treasury, or have it levied on the property by the assessment process.