CITY OF BOSTON. IN BOARD OF COMMISSIONERS ON THE SINKING FUNDS, To the Honorable City Council:— The Board of Commissioners on the Sinking Funds for the redemption of the debt of the City of Boston, have the honor of submitting their first semi-annual report to the City Council, in conformity to the requirements of the Ordinance on Finance of 1870, by which also they are constituted. The Board held its first meeting February 15, 1871, and was duly organized, the Mayor, William Gaston, being the Chairman, and the Auditor of Accounts, Alfred T. Turner, Secretary, as required by the ordinance. The Treasurer of the Board is F. U. Tracy, the City Treasurer. As it was so near the close of the financial year of 1870-71, it was decided that no action should be taken in relation to the funds placed in our hands before its close, other than .to ascertain, if, with its additions and accumulations, it would be sufficient to meet the payment of the debt outstanding at that time, at maturity, and whether there was a necessity of further taxation of the per cent. on its capital, as required by the Ordinance on Finance; and to invest the cash then on hand, belonging to the fund. We ascertained the fact, there would be no need of further taxation of the capital of the outstanding debt, and informed your honorable bodies to that effect. The Water Loan of $688,000, becoming due April 1st, has been renewed under authority of the City Council. The Board also purchased, before the close of the financial year, of the city, the loans previously authorized by the City Council, including the Water Debt renewed, amounting to $3,313,000, thus making the total funded debt, 30th of April, 1871, $26,472,916 80, as stated in the Auditor of Accounts' Annual Report of 1871. The general fund in the charge of this Board for the redemption of the City Debt has been divided into two parts, as follows: General Debt Sinking Fund. - Embracing the redemption of all the debt of the city, except the Water Debt, and the Sterling "Consolidated Street Improvement Loan," for which special provision has been made in the negotiation of the same. Water Debt Sinking Fund.—For the redemption of all loans negotiated prior to January, 1871. There existed at the time this Board was organized a "Consolidated Street Improvement Fund," created by the order of the City Council, authorizing a Sterling Loan, which was negotiated in London, for £800,000. The order of the City Council provides that all the betterments and revenue of all kinds, derived from the various improvements for which the Sterling Loan was made, shall form a special sinking fund for the redemption of the same. The improvements embraced in this loan are those of Atlantic Avenue, Fort Hill Improvement, widening of Hanover street, and part of Church-street District. By the terms of the negotiation of this loan, the city is obligated to redeem in London £8,000 annually, and your commissioners have decided that the bonds, redeemed shall be returned to this city and cancelled. The close of the financial year 1870-71, April 30, 1871, and the closing of the accounts of the Committee on the Reduction of the City Debt, at the same time, showed the following result, viz. :— Balance from the Committee on the Reduction of the City Debt, being for a part of the time covered by this Board when the committee had ceased to exist Consisting of six per cent. City of Boston Currency bonds (in which are included the $3,313,000 invested by $10,455,815 57 this Board as before stated), $7,771,675 00 Cash on deposit 2,684,140 57 $10,455,815 57 Cash and bonds belonging to the Consoli- A detailed statement of the above account is given in the Annual Report of the Auditor of Accounts of 1871, page 200. Your commissioners, having given a statement of their proceedings since their organization, and the condition of the funds as they stood April 30, 1871, believe that a clearer idea will be obtained of the duties of the Commissioners on the Sinking Funds and the process by which the debt is to be redeemed, by quoting fully from the Ordinance on Finance of Dec., 1870. The second section of said ordinance provides that loans for public buildings and lands upon which the same are to be located shall be negotiated for the term of ten years; those for widening streets and street improvements for |