THE LOAN PROPOSALS.

Manawatu Herald, Volume XXXII, Issue 815, 22 February 1910, Page 2

THE LOAN PROPOSALS.

SOME INTERESTING FIGURES.

In view of the approaching poll for a loan of ,£20,000 for a combined water supply and drainage system for the borough, the following figures, showing the present amount paid in rates and the amount that would have to be paid if the loan were carried, should be of interest to our readers. As security for interest and sinking fund for a loan of ,£20,000 the Council proposes to levy a rate of s•■.id in the £ on the unimproved rateable value of all properties iu the present sanitary area. Against this there will, of course, be a special water rate, which will go towards reducing the rate on the unimproved value, but until it is ascertained what ratepayers will, or will not, have the water laid on, it is impossible to say to what extent the rate will be reduced.

In ati}’ case, ratepayers cau rest assured that the water rate will

not be excessive, as the Municipal Corporations Act provides that where the annual rateable value of any property does not exeeed /,'i2 rosthe water rate shall not exceed ten shillings per annum. According to the Act, the annual rateable value of a property is 6 per cent, of the capital value. The present general and special rates levied by the Council amount to 3jd>d on the unimproved value and a sanitary charge of 15s per annum. The latter is not sufficient to pay the expenses of the present system, and will, according to the Borough Treasurer, have to be increased to 17s 6d next year. However, basing our calculations on the present rates, the following table shows the present rates and the rates that would be paid if the loan were carried. Taking a property, the unimproved value of which is ,£25, the present rate of in the £ and the sanitation charge of 15s, amounts to £1 2s .jd. If the loan were carried, the rates on this property would only amount to iSs yd, a decrease of 3s qd. The comparative rates on other values are as under: —

Ik a loan of £i 1,000 for a water supply only were carried, it would be necessary to strike a rate of 2 i5-i6d in the £ on the unimproved rateable value as security for same, and the difference in the rates would be as under; —

Ik the carrying of the loan of ,£20,000 does mean a little extra rates —and as will be seen from the above table, in some cases it will reduce them, and others the increase will be only a lew shillings —ratepayers should not forget the advantages of an up-to-date system of sanitation.

Value of Present Rate if Loan Property. Rates. is Carried. £ jC d. £ s. d. 5° 1 9 7 i xT o 75 X T 6 IT 2 15 7 ICO 2 4 2 3 °

Rates of Unimproved Present water loan Value. Rates. if carried. £ £ s. d. £ s. d. 25 1 2 4 1 8 6 50 1 y 7 2 in 75 1 16 11 2 15 4 100 2 4 2 3 » 8