MUNICIPAL PROGRESS

Hokitika Guardian, 21 June 1920, Page 2

MUNICIPAL PROGRESS

TO BORROW OR NOT TO BORROW.

(Written for the Guardian.)

About a week ago the Hokitika Borough Council wrestled briefly with the question—To borrow, or not to borrow ? The question as a mutter of fact had been on the tapis for some months, but as so often happens in these eases, it was easier to put off the answer till a more convenient season. When the flu al decision was arrived at it was reached within the presincts of the committee room and the public know very little ' 1 the. pros and cons of the case. However, a representative of this paper has been making enquiry, and has gleaned that the proposal was to raise £5,000 for town improvements. A schedule of works (to be gjven later] was drawn up by the Overseer and l iu matter put in train for adoption. In the interim while the whole question was simmering in the minds of the eoucillors, the larger and more urgent question of the inadequacy of the water supply cropped up, and whe-i [ the town improvement loan came on j for consideration it was negatived a: ! most unanimously l>y tli# Councillors. ! Looking to all the facts of the case, i and regarding the future of the town as I likely to be almost immediately prosI perous, the question arises whether I there is wisdom in the negative stand of j the Council, and further, whether it | would not lie more opportune to hot". : row now than later. With these interrogatories in mind the present subject was taken in hand. First as to the, wisdom of the Council’s stand. We know that the local Council is managed very economically. The administration, in point- of f act. borders on the frugal. The position seems to be unduly strained at times, when for instance we see such works as the Hall Street drain being carried .on out of revenue. This is a large work which has been in progress for for some years, and like the Otira tunnel it lias not yet reached a point where it can be of utility. The resources of the Council in money and men have been devoted to the work, to the exclusion of other Borough work, and or dinary maintenance and cleaning up have been avoided and left undone m order that the large permanent drain should not he unduly interrupted. General works were at a standstill in consequence of the priority given to Hall Street drain, and the town lias suffered accordingly. This is an instance of the unwisdom in not providing for works of this character out of loan mone v and allowing the general revenue to be devoted to its legitimate purposes. As to the second query, it would certainly be more opportune to Borrow now than later. Tile Hokitika Borough Council could raise the money as cheaply now as any local body in New Zealand, and we believe at a figure within the percentage "allowed by law. Here is a. table to indicate what a John of £3,000 would cots) at say 5} per cent principal redeemable at the rate of £2OO per annum. The loan would have thereby a. currency of fifteen years, which would he a reasonable time ro liquidate the debt.

The average interest payment would be £B4 per annum, so that the average annual payment to repay the loan and all interest due over the fifteen years, would be £284. This is an amount which we believe, looking to the frugality of the general administration of the Council, could be paid out of Hie ordinary revenue without any extra taxation. This would be possible because of the saving which would result in maintenance as a result of the more permanent works undertaken. There is also the fact to be borne m mind that borrowing at 51 for a term, the Council could get cheaper money than could be obtained by the way of current overdraft—another direction which a saving could be affected. The works to be undertaken are a matter for the Council to determine. The Overseer’g list was we understand, drawn up with an idea to economical expenditure by avoiding costly material difficult to procure just now, and utilising only those commodities which were readily available -locally at a not undue price. It will be of interest to set down the list drawn up by the Overseer:— - ' ' > '•

Grading, widening and gravelling Hampden St, and footpaths 500 Completing Bolleston St. junction with Stafford St. 75 Completing Hall St. drain and improving street 250 Repairing - and overhauling Swimming Baths 75 Asphalting footpath s and painting fence, Macandrew Square 100 Ca-ss Square improvements, including building with hot waW lOjr'Lys for visiting school picnic parties,. purchase of horse lawn mower, top-dress-ing, and attention to grounds 450 Town Hall, painting and renovation 300 Concrete drain, lower Brittain St. to Gibson Quay 350 Borough streets and footpaths improvements 900

Total , 3000 In looking through the above it will he seen that the Overseer has selected and named several works which if provided would add greatly to the public convenience, while in the last named item there is an elasticity which would cover all parts of the town requiring general expenditure to meet the growing re quirements of an increasing population. The town i s not going to go back. It is going to grow, and keep' on growing, and the increased population will Help the Borough to discharge its civic responsibilities with increased ease. The

municipality has natural attractions in and about it which make it the queen borough of the Coast so far as desirability of residence, i s concerned. Its situation and attractions make it worth while for the residents to take a personal interest in its welfare and advancement. The suggestion-to raise cheap money to make the town more attractive by improved streets and better attention to its public resorts, is an admirable way to advance the place materially. The prosperous period the district is now entering upon calls for courage and enterprise on the part of the inhabitants, and it is for them to show confidence in the town by a helpful spirit to advance what concerns them day by day—The more comfortable surrounding of their own town where they and their children pass their lives. The townspeople of late have won great kudos for their way of doing tilings. Keep up the spirit, and help to keep pushing the town to the front.

Year: Loan : Interets: Annual Payment: 1 £3,000 £1.57 10 0 £357 10 0 2 2,800 147 0 0 347 0 C 3 2,600 136 10 0 336 io 0 4 2,400 126 0 0 •'-326 0 0 0 2,200 115 10 0 315 10 0 6 2,000 105 0 0 305 0 0 7 1.800 94 10 0 . 294 10 0 8 1,600 #4 0 0 284 0 0 9 1,400 73 IT) 0 273 10 0 10 1,200 63 0 0 263 0 0 11 1,000 52 10 0 252 10 0 12 800 42 0 0 242 0 (' 13 600 31 10 0 231 10 0 14 400 2] 0 0 221 0 0 15 200 10 10 0 210 10 0 •• £1,200 0 0 4260 0 c