Yuba County

History

Chapter XLIII - Financial

On the thirtieth of April, 1855, an Act of the Legislature, "to provide for Funding the Floating Debt of the City of Marysville, and, for the Extinguishment Thereof," was approved.  The Mayor, President of the Council, and Treasurer were made "The Funding Commissioners of the City of Marysville," and their duties were defined.  Certificates of stock were to be issued to cover the amount of the city's indebtedness up to the first of July, 1855.  The Common Council was allowed to authorize the Board of Funding Commissioners to issue bonds similar to the others, "to an amount not exceeding ten thousand dollars for the purpose of defraying the current expenses of the city after the first day of July, 1855."  February 8, 1856, another bill was approved for the purpose of Funding the Floating Debt.  Under its provisions, the Mayor, Treasurer, and Clerk constituted the Board of Commissioners.  In addition to the other matters, the Common Council was authorized to submit to a vote of the citizens "a proposition to borrow a sum not exceeding thirty thousand dollars, to be expended on the erection of an engine-house for the use of the Fire Department, and for the erection of school houses."  If two-thirds of the votes were in favor of this measure, the City Council were to authorize the Board of Funding Commissioners to issue bonds to that amount.  February 5, 1868, two Acts were approved, one amendatory to the other.  The limit fixed for the amount of the bonds was seventy thousand dollars.  The act merely extended the powers of the existing Board of Commissioners, and ordered them "to pay into the City Treasury the sum of eighteen thousand dollars" lying in their hands uninvested, which was to be placed in a fund called the Levee Fund.

Below is a table containing a list of the bonds issued by the city of Marysville, of which any are outstanding.  Owing to the incomplete and inaccurate records, no satisfactory results could be obtained in the examination of the books pertaining to the first issue of bonds, hence they are omitted.

Yuba county has several times been compelled to resort to the use of bonds to straighten her financial affairs.  The recklessness of expenditures in the first few years of the county's existence, the high price of labor and material, the lack of anything valuable to form the basis of taxation, soon plunged the county headlong into debt.  The first year the expenses were $39,000 more than the receipts, and the second year the expenditures were $18,000 in excess of receipts, notwithstanding the heavy licenses collected.  In view of this fact, the Legislature passed an Act, approved April 10, 1852, authorizing the county to issue seven per cent bonds for all warrants held against the treasury.  Under this Act, warrants to the amount of $47,615.76 were funded.  The old books are either lost, or so incomplete that it is impossible to give a complete history of these bonds.  Notwithstanding this relief the county still continued to sink into debt, and March 26, 1857, another Act was passed by the Legislature, providing for the funding of the county debt.  Under this Act bonds to the amount of $96,800 were issued.    Of these, $53,600 were redeemed, and $43,200 were funded in bonds of 1868, as provided by an Act of the Legislature, approved February 13, 1868.  Since then, there have been no bonds issued for general county expenses.  Under an Act, approved April 28, 1857, authorizing the county to issue bonds to the amount of $200,000 to the San Francisco and Marysville Railroad Company, $100,000 in bonds were issued.  For the bonds the county was to receive an equal amount of the railroad stock.  The Board of Supervisors, having refused to issue the other $100,000 subscribed, long and expensive litigation with the California Pacific Railroad Company (successor to the S.F. & M.R.R. Co.) was maintained, which finally resulted in an Act of the Legislature, in 1861, allowing the county to compromise with the railroad company, by both parties releasing all claims.  In 1868, $32,500 of these bonds were funded, $67,500 having been redeemed, and $73,775 having been paid in interest.

The condition of other bonds, issued by the county, can readily be seen, by reference to the subjoined table.  The table also shows that the county has borrowed $466,815.76, for which there has been paid in interest $356,514.45, exclusive of the interest on the 1853 bonds, which could not have been less than $15,000;  also that $302,915.76, have been redeemed, leaving the amount outstanding, or the total bonded indebtedness, $163,900.

The practice of borrowing money for current expenses is certainly a costly one, and the burden of the issuance of bonds to aid supposed beneficial enterprises is more apt to be fully realized after, than before its execution.

ASSESSMENT ROLL SHOWING VALUE OF PROPERTY AND RATE OF TAX

EXHIBIT OF BONDS OF THE CITY OF MARYSVILLE, JULY 1, 1879

EXHIBIT OF YUBA COUNTY BONDS, JULY 1, 1879

* The books do not show the amount of interest paid on this issue.

COMPARATIVE TABLE OF RECEIPTS AND EXPENDITURES OF YUBA COUNTY FOR FIVE YEARS

*Warrants are now drawn against these funds.

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