THE TOWN HALL.

Evening Star, Issue 4131, 24 May 1876, Page 3

THE TOWN HALL.

To the Editor Sir,—l am glad to find that the proposal to erect a Town Hall is likely to cause some discussion outside the City Council Chamber, and I trust you may find space for further correspondence on the subject. I agree with “ Ratepayer ” that the financial position and requirements of the City in respect of drainage and other necessary works do not justify the large expenditure involved in the proposal. Apart from the gas and water-works loans the Corporation has already borrowed L 200,000, involving an annual charge of L 14.000 for interest and sinking fund. After paying for the luxury known as “the widening of Princes street” we shall have left about L 60.000, while the estimated cost of necessary works within the City (exclusive of drainage) is about L 130,000, or L 70,000 in excess of our means ; for it must be borne in mind that, although the Corporation has power to borrow another LIOOjOOO, that sum is appropriated by ■statute to drainage and sanitary purposes, and will not be available for ordinary City works. While so far agreeing with your correspondent “Ratepayer,” I think his calculation of “the actual cost to the citizens” of the proposed Town Hall is not borne out by his quotation from the City article in the ‘ Times/ Take, for example, the Argentine 6 per cent, loan of L 61,224,000, redeemable in twenty-one years by an annual appropriation for interest and sinking fund, of ,L 620,404 as follows : Interest at 6 per cent, £3C7 344 Sinking fund, 2$ do 153^060 £520,404 which, multiplied by 21 (the currency of the loan), gives the total cost to borrower at L 10,928,484, as stated in the article. Adopting the same mode of calculation, “the cost to the citizens” of a loan of L 25,000 will be found to be, not L 75.000 as stated by “Ratepayer,” but L 53.550, as follows: - Interest on £25,500, at 6 per cent, for one year ... 53^ Sinking fund on do, at 1 per cent. f.r one ’ 255 ] 785 Multiply by currency of debentures (thirty ’ years) oq Total cost to borrower 550 So that assuming the cost of the Town Hall at L 25.000, and exchange, &c., at LSOO, we shall have to provide out of our ordinary City revenue L 1,785 per annum, less, say LSOO, the probable rental from the present Corporation offices and the now ball, Tho principal question for the citizens to consider is, in my opinion, will they have a Town Hall at a cost of L 30.000 (for it will be that at least), leaving only L 30.000 available for necessary works, the cost of which is estimated at LISO.OOO ? I may state that I am not the author of the letter signed “City Councillor.”—l am, &c., _ Richard H, Leary. Dunedin, May 23.