STREET LOAN.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5154, 20 July 1927, Page 2

STREET LOAN.

PAEROA RECONSTRUCTION WORK.

ADDRESS TO RATEPAYERS

About a score of ratepayers were present fit the Centenary Hall last

night when His Worship the Mayor (Mr \V. Marshall) addressed the meeting on the proposal to raise a loan of £4500 for the reconstruction of main streets.

In opening the meeting the MayK thanked the ratepayers for their attendance, but expressed his regret that there were not more present. The meeting had been called to explain the need for raising the sum of £4500 for permanent street improvements. The highways in a borough or a city were called streets, and the fee simple or title to ownership was invested in the corporation known as the Mayor, councillors, and burgesses. Other highways controlled outside of cities and boroughs were generally referred to as roads.

Dealing with the creation of roads, the Mayor referred to the wonderful road-building system .adopted by the Romans, and detailed the advance of road-making, necessitated as modern modes of traffic increased, up to the pre-sient time.

Within the past few years, said the Mayor, it appeared as if a deluge of motor traffic! had overwhelmed the streets. Locally, the difficulties of maintaining satisfactory streets required courage and resourcefulness, especially in view of the large rainfall area, which added considerably to the difficulties.

The proposals and reports of the council hud been fully published, and no doubt, as intelligent ratepayers, the whole position as it obtained had been carefully read by all present. Two features were necessary in street construction. Firstly, there must be a strong foundation, and, secondly, there must be a permanently good surface that lent itself readily to maintenance. With regard to secondly, to obtain the desired results it was necessary to have a street sealed so that it was impervipusi to water. The borough had a valuable legacy in the splendid foundations of its main streets, but unfortunately the fact had not been appreciated, and the value was realised only when the street crust had been allowed to deteriorate until a critical stiige was reached which necessitated immediate action. Although possessing sound foundations the borough streets had never had a good and permanent surface. Experience had shown that the only satisfactory way of maintaining a water-bound macadam road was by keeping a floating surface of metal chips. However, something more lasting was required, and the only apparent solution within sight was the sealing of such streets. The reasons why the streets had been allowed to deteriorate as they had was; on account of the desire, since the loans were authorised in 1920, to push on with the sewerage works first. It was a!s(0 desirable to await the workings and results of the Motor Vehicles Act, by which the council received certain revenue in license fees, and contributions from the Main Highways Act. Now, however a scheme had been brought down and approved of. A difficulty was also presented by the fact that some of the borough streets had been constructed with an excessive camber which was unsatisfactory and which had to be: reduced before any permanent surfacing could be undertaken.

The three systems of bituminising were explained, after which tihe MayOi detailed the first step of straightening up the foundations that had already been undertaken in Normanby Road. A £10,0'90 scheme for loading had been brought down, but later, after careful consideration, a modified scheme had been brought forward estimated to cost £8675. It was confidently thought that the second scheme would be suitable and workable. Of the proposed loan of £8675 there was the previous relief of unemployment loan and Government subsidy of £3OOO, and also a district fund account contribution of £1175, which actually reduced the loan to £4500. Interest and sinking fund on that amount (11 per cent.) was £495 a year, while annual maintenance was estimated at £5OO, making the total annual charges £995. This year £9OO was earmarked for maintenance of main highways', so that the annual charges of the proposed loan, including maintenance, were approximately only £lOO more than the current year’s maintenance. The saving of maintenance charges might be capitalised so as to reduce the loan. It was only possible to put the scheme in hand and save the greater expenditure provided the ratepayers authorised the loan at an early date.

After explaining the details of the raising and expending of the money required, the Mayor said it had been agreed by experts that the estimated ■cost per mile of maintaining bitumen streets was about £250 per annum, plus interest and sinking fund, as against about £lOOO a year for macadam . water-bound streets. It was, therefore, obvious that one system almost balanced the other. The requirements of the Local Government Loans Board were detailed at length, and it was shown that the information sought was of such an exhaustive nature that the’ ratepayers were fully protected, provided the scheme and the figures of the proposals were sound. In the last few years> tihe council had spent some thousands of pounds in purchasing machinery and plant, much of which would be nonrecurring. Such items had been bought out of revenue. The council was gradually getting over its inaugural difficulties, and there were fresh avenues for revenue opening up. So long as expenditure was proceeded with on ca.utipus lines all would be well. In the opinion of the speaker, if the £4500 was borrowed the borough would have good main streets and the ratepayers would have to pay little if any increase on the cost of maintenance on bad streets or a macadam water-bound street if motor traffic increased. Provided the estimates were reliable, the scheme was one for ratepayers to go

for as readily as a person hiivipg an old cottage without conveniences would go in for a new bungalow if lu knew that his expenses would not exceed his. present rent. The scheme was a business proposition, so that there was no need for him to urge that consideration should be given to the great improvement it would be to the town or to appeal to the civic spirit or pride in the town as a reason for supporting the proposal. THE POSITION SUMMARISED. In summarising the position the Mayor said that the present condition of the main streets was an unsatisfactory one, a.nd the only possible maintenance of them was exceedingly wasteful, expensive, and contained no promise of an improvement. Rather, there was a certain prospective increase in maintenance charges if the streets were not sealed. The proposal outlined was sound, and if the estimates received the endorsement \>f the Public Works Department the ratepayers might safely accept the responsibility of carrying the additional debt.

REMARKS BY CR. FLATT

In support of His Worship Cr. Flatt (chairman of the Finance Committee) explained the earnest consideration that had been given by the council to the matter of main highways. He detailed the drawing up of the proposals, and the negotiations that had been entered into with the Government officials when the Mayor and he had visited Wellington. The Government engineers had congratulated the Mayor and eulogised the work brought forward, and appeared to be well satisfied with the soundness of the scheme and also the figures submitted. The short terms for loans had come to stay, and it was, no use kicking against the alteration. It was apparent that motor traffic would increase, and that the motor users would have to pay a bigger proportidn of maintenance costs of highways. The ratepayers would have to pay a rate on the £2OOO. The present council could not commit future councillors. If special rates were reduced the general rate would necessarily increase. QUESTIONS.

In answer to Mr R. Waddingham the Mayor said that the cost of concrete was about £10,090 a. mile, and as the borough had about four miles of main highways it would cost £40,000, which meant that an additional £32,000 would be required. It was not correct to suggest that a concrete road lasted for ever, and he quoted instance of such roads in the province against such a contention. To Mr G. E. Allen the. Mayor said that the interest, sinking fund, and, maintenance on the loan would not exceed the present cos£ of maintenance. The argument in favour of paying out of the district fund account towards the 1 loan was because that fund was receiving additional revenue for maintenance purposes, and it was only right to use the money for the purpose for which it was contributed rather than levy a rate. It was not desirable to increase the rates if it could be legitimately avoided. Already £3OOO was outstanding in rates, nnd the ratepayers were carrying as big a burden as they could bear. Because the liability of the borough was increased it did not necessarily signify an increase in rfites. In answer to Mr G. P. de Castro the Mayor said that so far there had been no engineering fees, in carrying out the prepared work. It was not the intention of the council to incur engineering fees on the present work, but anything might arise that would call for the services of an engineer. Also certain plans might be necessary, for which a fee would have to be paid. Cr. Flatt explained that the council had gladly accepted the services of the Mayor to carry out the £3OOO scheme, and thus save the ratepayers a sum of about £3OO. To Mr de Castro’s second question the Mayor said that the Local Bodies Loans, Board did pot insist on a qualified man superintending the work. However, the council was watching the interests of ratepayers, apd he did not think there was much to fear. Mr de Castro went on to question the various loans, that had been raised and proposed, when the Mayor reminded him that the meeting was called to discuss the £4'500 loan only. If the figures in the proposal were correct, qnd the ratepayers would not be called upon to vote unless they were, the interest, sinking fund, and maintenance would not be greater than the money that was being spent at present. That position was clear and defined, and the money would be expended and a good street prevail before the end of next summer. Mr J. P. Gamble said that after 25 years’ experience in various parts of New Zealand he had never known a more competent or earnest council than the one in Paeroa. He quoted instances of the rates existing in other boroughs and said that he was proud to live in Paeroa and be associated with such competent councillors. Paeroa had been a back number for a long time, but it was now moving ahead, and it was up to the people to assist the council. The Mayor said that there were certain inequalities with reference to rating at present in Paeroa, but a revaluation of the borough would alter such anomalies. To Mr de Castro Cr. Flatt said that an indication had been given that motor lorries would have to pay an increased tax, and also motor-cars, a proportion of which tax would oe expended on maintaining good highways.

In support of better roads Mr D. Leach said that if good roads obtained the borough would progress because of the increased trade that would result. In answer to Mr Leach the Mayor said that the £4500 would be expended in the borough, and the wages paid would be at the award rate. The' unemployment loan was a special provision, and was in force for 12 months only, and, loca.lly, applied to the £lOOO only. With reference to increased motor taxation the Mayor gave it as his

opinion that the levy on motor vehicles would be in the form of a benzine tax. PROPOSAL ENDORSED. The following resolution moved by Mr D. Leach :—- “That this meeting of ratepayers, after hearing the explanation of the Mayor and Councillors, is of the opinion that the outlined proposal is the only businesslike and sensible way of dealing with main streets,, and ph..t we undertake to promote the success of the proposal.” Seconded by Mr C. N. O’Neill and carried, unanimously.

In returning thanks the Mayor said that the council would go ahead with increased confidence, and no efforts would be spared to give full value for every £1 expended. In conclusion he sijid that during the nine years he had been on the council he had not known the members to be so unanimous on a matter as they were on the proposal under consideration. The proposal was - accepted as a businesslike method of grappling with the difficulties of maintaining the local highways.’ On the motion of Mr de Castro a hearty vote of thanks to tihe Mayor was carried by acclamation.