AUCKLAND LOAN PROPOSALS.

Dominion, Volume 1, Issue 49, 21 November 1907, Page 9

AUCKLAND LOAN PROPOSALS.

STATEMENT BY THE MAYOR. THE FINANCIAL POSITION. . (by TELEGRAni—SrECIAL ; CORHBSFONDENT.) Auckland, Novomber 20. The financial position of tho city of Auckland was reviewed .in favourable terms by the Mayor (.Mr. A. M. Myers) at the : routing of ratepayers held last ovening for tlio purpose of considering the new loan .proposals. He quoted certain figures which ho said would refuto the statement that tno Council wqs too progressive. Tho present rates amounted to 2s. 7sd. in tho £, whioh on ,-i valuation of £474,690 produced.£62,3o3. The rates now outstanding for tho year ended May 31, 1906, amounted to only 14s. sd. out of £56,034 collectable, whilst for tho, year ended May last tho amount outstanding ■ was only £12 .}os.. ,9d., of,-which. £7,,}25. 3d. was dependent upon.'the decision in a Supremo Court case. This, lie said,spoke yolumes, not oiily for tlio-prosperity of. tho.city, but also for the zeal and ability of . tho ofliccrs'of tho Council. (Applause.) "The average yearly increase in the-valuations for the past five years had boen £23,090; and tor this year it was no less than £32,387, of which new buildings- accounted for £7310. Some people said, " You do not increase our rates, but you put up our valuations." lio ivas quite sure, however, that all tlm-in-croases made wero thoroughly justifiable, and that no property-holder would sell his pro-perty-at tile amount of tlio- Council's assessment. The estimated assets in March last amounted to £976,090,.which, with the additional assets estimated to bo produced by the expenditure of new drainage arid other loans (exclusive of Grafton bridge), mado a total 0f.£1,497,090, or .say a million and a bait.' Tlio total liabilities on' account of loans raised were £829,496, which would bo increased to £929,496 by tlio two new loans now contemplated. He pointed out, however, that of these loans those on account of electric light, abattoir, and waterworks were" solf-supporting. ' Tlio 1 total interest, payable ou loans floated to date was £36,1'49. ' The loans likely to be issued next year wore:— Town Hall, £40,000 (ono half); Grafton Bridge, £15,000 (oho half); and drainage (including • £10,000 authorised •in 1599), £60,000. Those loans would reprosout an additional interest of £4887, ' this bringing tho interest to be provided next yoar up to £41,036." Tho special rate was estimated to produco £31,543, the improvement trust £2100, and the wator funds, say, £5100, making a total of £38,743. This loft a balanco of only £2000 to bo provided, cither out of tho water fund afceount (which did not now bear its full sharo of intorest), or out of the balance available from the tramway profits after providing sinking funds. 'The amount at present to the credit of the tramway .profits account was £9383, and the amount likely to be received' ■ yearly was £3000. The sum required for a half por cOnt. sinking fund on loans previously floated, but not provided for (totalling £155,400), was £777. There was a certain amount of leeway to be mado'up in connection with the sinking fund on these loans, and for this purpose about £5000 would lie handed over to tlio sinking fund commissioners. Tho sinking fund on present loans paid out of revenue amounted to £3414, whilst the sinking fund of £777 already mentioned' would ho paid from tramway profits. Tho sinking fund on tho Town Hall and cemetery bridge loans (amounting to £580) would also be paid from the same source. In concluding, tho Mayor stated that tho estimated receipts for the current year amounted to £153,865, and the estimated expenditure to £144,218. In connection with the expenditure he pointed out that the items of £11,450 for waterworks and £2000 for the Ponsonby baths were for permanent works. The amount of £1150 for baths also included an itom of £500 for mi provoments at the' Albert Street baths, while £16,000 out of tho £42,000 devoted to streets was also to be spent on street works, making tho total expenditure on pormanent work £31,950. The amount spent on streets (including lighting) during 1905-G was £33,353. In 1906-7 it was £31,779, while-tho estimated amount for 1907-8 was £42,000.