BOROUGH IN A QUANDARY
MUNICIPAL BORROWING POWERS.
Press Association
NEW PLYMOUTH, yesterday
The Borough Council discussed a financial difficulty raised against the Borough borrowing money for works already, done. Tho difficulty arose through the electric light system exceeding tho estimate, and funds for completion being paid out of general account, the Council trusting to reimburse that account by tho flotation of a new' loan, a similar course having been followed in respect to two previous loans, to which objection had been taken.
Opinions were expressed by several legal firms doubting the legality of raising money for liabilities already incurred, the Borough’s "powers being limited to raising funds for future expenditure. The Borough Council’s solicitors advise that the only course open to the Council is to promote a local Bill to validate all proceedings, and the Council adopted tho suggestion. The Council also decided to borrow £15,000 from the Bank of New Zealand at a rate not exceeding 6 per cent.
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Bibliographic details
Gisborne Times, Volume XXV, Issue 2092, 29 May 1907, Page 3
Word Count
160BOROUGH IN A QUANDARY Gisborne Times, Volume XXV, Issue 2092, 29 May 1907, Page 3
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