MURPHYSBORO BUYS WATER SYSTEM

$1,700,000 Waterworks & Sewerage Revenue Bonds Delivered

After many years delay and after several unsuccessful previous attempts, the City of Murphysboro has finally acquired ownership of the waterworks system. The utility was purchased from the Murphysboro Water Company and will be operated by the City in conjunction with the sewerage system as a combined municipal utility.

This was made possible by the issuance of $1,700,000 Waterworks and Sewerage Revenue Bonds which were delivered in St. Louis on March 25. Approximately half of the proceeds will be used for construction of a sewage disposal plant, another much needed and long delayed civic improvement.

Mayor Joe Williams handing $1,700,000 bonds to Biyth and Company. Left to right; Howard Percy of Midwest Securities Co., fiscal agents for the City; Delmar Ward, City Clerk; William M. Wolff, City Attorney; Mayor Williams; Arthur Weichelt of Midwest Securities Company, and Arthur Nemeth of Biyth and Co., Inc., purchasers of the bonds. Photo taken at Mercantile Trust Company, St. Louis, Missouri.

Mayor Williams stated that it is gratifying to know that this program appears to have the whole-hearted support and endorsement of the public, in contrast to the strong opposition experienced in past years. As far back as 1920 an election was held on the question of purchasing the water system, but it was badly defeated. Another election in 1934 drew over 4,000 votes but again the proposition was rejected. Negotiations for the purchase were resumed in 1943 but this time the question was not even submitted. Another election in 1951 lost by 3 to 1 vote.

When the State Sanitary Water Board several years ago brought suit against the City to build a sewage disposal plant, it was obvious that something had to be done. In 1956 the City Council engaged Midwest Securities Co. to work with the City's engineers, John T. Blankinship, and Crawford, Murphy & Tillie, and to act as the City's fiscal agents in investigating various possibilities of financing both the sewer program and the water acquisition, it being common knowledge that sewer projects are easier to finance when combined with water operations.

Thorough engineering surveys and financial studies were made and complete reports submitted to and discussed with the City Council. Public opinion surveys were conducted in cooperation with the Chamber of Commerce. Information was freely distributed to the press. By the time the final program was formulated there was little doubt about public support. This time there was not even a petition filed for an election, and apparently no opposition whatever.

Topping off the success of this program was the excellent sale of the bonds in spite of an unfavorable market. Bids were attracted from 33 securities dealers, including the largest houses from all parts of the country. The bonds were sold at a net interest cost of 4.12% compared with 5.04% for similar bonds recently sold by a neighboring city. A representative of Midwest Securities Co., fiscal agents, has computed the difference in interest cost at $409,957 saved by the City of Murphysboro.

Page 80 / Illinois Municipal Review / April 1958