LOAN PROPOSALS.

Hauraki Plains Gazette, Volume XXXV, Issue 4751, 15 September 1924, Page 3

LOAN PROPOSALS.

TOTAL OF £12,009 APPROVED. ONE SMALL RATE NECESSARY. At the Paeroa Borough Council meeting on Thursday evening three loan proposals werei submitted by the Mayoi (Mr W. Marshall), and the necessity for each one was thoroughly thrashed out, amended, and discussed before decisions were arrived at. The first proposal was : “That immediate steps be taken to place before ratepayers a proposal to borrow £6OOO for the purpose of enlarging, renewing, and extending the water reticulation in the borough, the loan to be for a term of thirty-six and one-half years at a rate of interest not exceeding six per cent, with a sinking fund of one per cent, to provide a sufficient sum to redeem the debentures at maturity.” In moving the resolution His Worship suggested that an instalment of the loan amounting to £2OOO should be raised immediately to provide for urgent works, while the balance would probably only be required in small amounts and spread over a number of years. Now .that thei final payment to the Ohinemuri County Council had been made on account of the purchase of the water mains, there would be a sufficient annual surplus in the water revenue account to pay interest and sinking fund on the £6OOO, and therefore no rate would ever be collected.

The proposal was adopted without discussion.

LIBRARY AND COUNCIL OFFICES. The Mayor then moved: “That steps be taken to place before the ratepayers a proposal to borrow £2OOO for the purpose of erecting and furnishing a municipal office and a rest-room for ladies on section 27 (next to new post office site) Norma nby Road, the loan to be for a similar term and rate of interest as the first loan.”

Speaking to the resolution, the Mayor said that the unsuitability of the present offices, the absence of a strongroom, and the risk of fire of the ever-increasing number of valuable municipal records made some move in the direction of adequate offices an absolute; necessity. He said that in his opinion the interest and sinking fund < n the proposal could be met out of the general and water accounts, in lieu or the rent paid for the present council offices, so that no rate would be necessary.

His Worship said that if the town continued to progress a comprehensive scheme for municipal chambers, town hall, and public library could be picceeded with and the suggested office., leased, but the present suggestion was to provide for bare necessities and to avoid an additional rate, thus enabling progress to be made with caution. Continuing, he said he deemed it unwise, in the public interests, to propose loans at the present time, which would only place a further burden on the ratepayers, who, in his opniion, 'could not shoulder them without a risk of serious consequences to the town. For those reasons any luxury, however desirable it might appear, should, he thought, be definitely deferred until a later date, when the public could reasorably afford to have it.

Cr. Flatt objected to the proposal on the grounds that the building might clash with a scheme for building a municipal town hall and offices, and that the council finances were not sufficiently strong at the present time to spare money for expenditure bn council chambers. The council had also committed itself to a large ?um for a road roller. He would rather see the project given more thought, and be held in abeyance until the borough progressed further. He moved as an amendment that the matter be held up until the end of the financial year, and the council to then consider the municipal hall. In seconding, Cr. Edwards said that he did not think the site was suitable for municipal offices, and he> was afraid that the smaller office would in a short time become inadequate and then a larger scheme would be necessary and thq small building would be left on the council’s hands. He fully agreed that a strongroom for council records was necessary.

Cr. Brenan said he was opposed to the site and favoured the borrowing of £4600 for the purpose of building a public library, municipal offices, and ladies restroom on the site of the ex 7 isting library.

Cr. Vuglar thought the proposed site was one of the best in Paeroa, and he favoured the expending of the £2OOO on the smaller building. Cr. Bain said he thought that in time Normanby Road would be the “dead end” of the town, and he favoured holding up the scheme. Cr. Silcock was of the opinion that tiie site was an admirable one, and quite suitable for council chambers, and lie thought the council would have no difficulty in letting its offices when a larger scheme was undertaken.

The Mayor said that he could not agree with some of the statements made. It was not fair to the ratepayers in Normanby Road, who were paying rates on £lO to £l5 a foot, to suggest that that area was the dead end of the town, and he could not see that the postponement of the proposal would help matters in any way.

The amendment was then put and declaied lost on the voices. Cr. Brenan moved as a further amendment that a loan of £4OOO be submitted for the purpose of building a library, council offices, and restroom on the present library site in Belmcnt Road. Seconded by Cr. Bain. . Cr. Vuglar said he was strongly opnosed to the amendment on the grounds that a rate would have to be struck and the ratepayers were not in a position to stand it. Cr. Flatt supported the amendment. The uifference in the two amounts was very small, and he thought the only scheme worthy of consideration was the one outlined by Cr. Breiian. The Mayor suggested that when the whole of the amount was found from the general account maintenimco work