LEVIN WATER SUPPLY.

Horowhenua Chronicle, 23 February 1911, Page 2

LEVIN WATER SUPPLY.

ADDITIONAL LOAN REQUIRED

STATEMENT BY THE MAYOR

The statutory public meting to consider tihe proposal to raise a waterworks loan of £1250 was held last evening at the Century Hall, Levin. The Mayor (Mr B. R. Gardener) presided over a small attendance.

In opening the proceedings, the Mayor said that 'lie was sorry there were only sucih a few ratepayers present, as he would have liked to have given a fuller meeting every information as to why the money was required. It was absolutely necessary that the extra money .should be obtained. One portion of the money would have to go towards payijng of! liabilities which were due at the present time. The fact was the money would have to he raised cither by loan or it would have to come out of the rates. Seven hundred pound? wore required to meet engagements the council tlrad already entered into, Tho 'balance of .€SOO would go towards further extensions of the mains, applications for which iverc rapidly coming in. This meant that the loan would lie a reproductive one. He was perfectly satisfied that the money that had already been spent and also the money that woukl be spent in the future, would practically pay the whole oi the interest and sinking fund upon tho £1250. The council had done a. very wise thing in deciding to apply foi" the loan, the interest ol which would be spread over a period of thirty-three years. It would bear interest at the rate, of 3J per cent, and on the sinking fund a Kttle over 1 per cent. He thought the ratepayers would see the wisdom of obtaining tho money through the Advaaicos to Local Bodies from the Government. By doing what they were intending to he done the council was making full provision for tho future ratepayers, and. he thought they should be congratulated upon tho way in which the water loans had been negotiated. AVheH the council raised the £18,000 money was very scarce. That monev could not be raised in New Zealand, and it had to be raised in London, and tho council got it at 4J- per cent. Towards that sum the Government was paying £130 a year, which was really .£9OOO taking the thirty-three years overwhich the money was payable. "When the council received the sanction of the ratepayers for carrying out the water schonip there was no uncertainty about the wishef or the ratepayers, and as a council the local authority had only carried out their wishes. During the last few weeks the residents had had aln opportunity of testing the value of the water supply. He knew that the ratepayers had had to bear an extra heavy burden this year, but lie did not think thev would like to go back to the old system. Tho position, continued the Mayor, in the future would bo a very different one from what it was today. At the present time a certain number of ratepayers were practical! v pay in" full rate on the water. The exact number was about 280. But next yeai, with the extra applications, that wero coming in the number would hp raised to 450. Tn other words a more equal division of the rate would 1 take place next year In the coming year the valuation would go up, bocause a number of properties- in- the borough- had not ; ls keen valued, and this, added to the extra number of persons who would have to pay the water rate would make things much easier for the ratepayers generally. He could see t-heie would not be any necessity to strike a special rate for the loan because the monev derived from persons outside the borough who were wanting connections" would make up for the interest and sinking hmd. If he were asked whether any further money would be needed towards the. water supply during, say the next five years, he would candidly say, yes. Because he believed that owing to the number of applications from outside it would pay the borough to borrow- the money which would not only return interest and sinking fund, "but which would also return a profit of from ■> to 10 ]ier cent on the outlay. In a town like that where thev had to depend so much upon the Outside farms the sooner the council could, help to improve those properties the better it would he for the town He knew it was tho intention of many farmers to get the water extended to their farms, and when thoy had got those extensions itwould prove not only useful to them but of advantage to the town. So far as depleting the Ohau of water was concerned, he thought they could easily put that on one side. Competent engineers had told the council that if they took the fullest capacity their pipes would take they were not talr'ng 4 per c-nit of tihe water of the river. If they took another 10 per cent they would not injure the river. Tn conclusion the Mayor maintained the money ivhicih' would have to he raised, was being very easily got, On easy terms md it was spread over thirty-three rears.

He then moved ':— " That this meeting of ratepayers of the borough of Levin approves of the action of the Borough Council in P''° o P°sing to raise a. special loan of 41200 for the waterworks scheme, and requests that a poll of the ratepayers he taken upon the question." Mr F. E. Parker inquired whether the raising of the monev was <io--f"--sitated through the increase in the number of applications for water. Was ain increase in the number of applications anticipated wik>n the loan was first carried?

fhe Mayor replied that that was not exactly the reason, though applications ihnd come in a much larger number than had been expected for the first year. What the money was particularly required for was this: Mr Climie, the engineer, had. underestimated the cost of the trenching out the Gladstone road. It was a ibigger contract than ili-e had anticipated. .Indeed, nearly £1000 more had been spent upon the trenching than was anticipated. Inero was also the question of the land purchase. Mr Climie did not take into # considoration the purchase of the native land at the time he gave Ins estimate.

Mr Davidson inquired whether the council. could get a guarantee that the outside people would take the water for a specified time, so as to Obviate> loss on the council's part. 1-lie Mayor replied that every nreca»tionjrou.M be taken in the matter. The user of the water would have to give a. guarantee that his successor would continue to use tlw> water.

# Mr France then seconded the motion moved by tho Mayor, and remarked that if it were not carried the money would have to be raised rrom the general rate. With regard to the extensions outside the borough, it was a question whether the borough boundaries with a little persuasion, could not be extended Mr Parker inquired mhether the council was 'unanimous on the matter. The Mayor: Certainly. . Jt as absolutely unanimous. -The motion was then unanimously agreed ty), J

In closing the meeting the Mayor emphasised the importance of the m-atter, and said that if they did not get the loan carried the result would be they would have to sbrike a special rate and pay it out of the general rato. It would be absolute madness to do that when they could obtain the money so easily, and when it was spread over so many years. The proceedings then concluded.