CITY SINKING FUNDS.

Dominion, Volume 6, Issue 1755, 21 May 1913, Page 7

CITY SINKING FUNDS.

LOAN TO GISBORNE. The Wellington City Council has, through the Sinking' Fund Commissioners, agreed to lend ,€15,000 to the borough of Gisbome for a term of thirty years at 5 per cent. The sinking funds for tho city are increased by payments from , several loan accounts by' about ,£20,000 «very year, and. the annual increase by interest is about, J59500, so that the funds • increase at the rntt of about ,£30,000 every year. In September, 1914, the city has to redeem *£25,000 worth of tho debentures in the .£IOO,OOO City Improvement Loan, which is repayable in four instalments in periods! of five years from that date. This will reduce tho annual increment of the fund by about -£1000, but the funds will very quickly i!ecover their present earning power. At present' all the sinking funds are administered separately, although by the same commissioners, and the method is said to bo becoming unwieldly. Two funds can not now bo made contributors fn taking up tho same security, and good investments are lost thereby, when, for instance, ho 9ingle fund has sufficient money to take up a big security offering. It is probable ■ th-it the commissioners will ask'-for'llegislation to.:periuit of the funds being joined for this purpose when £uch ..opportunities offer.