WATER AND DRAINAGE.

Manawatu Herald, Volume XXXII, Issue 818, 1 March 1910, Page 3

WATER AND DRAINAGE.

At the meeting of ratepayers held last Friday evening to discuss the above proposals, the Mayor said that he proposed to go fully into the matter of interest, which he believed could lie reduced, and which would make a considerable difference in the rating. He had been in communication with Mr Newman, M.P., who had promised to do all he could to assist the Council. Reasons were given why the interest had been computed at 6 per cent., instead of at a lower rate, and His Worship stated that when something more definite was known he would take the first opportunity of advising the ratepayers, so that they would be in a position to know exactly how the rating would effect them individually. The Mayor has now supplied us with the following information, and it would appear practically certain that a loan can be negotiated through the State Guaranteed Advances Office at a more favourable rate than the estimate has been based upon. It is expected that the rate of interest will be probably £4 17s 6d, or at the most is per cent., which includes sinking fund, and will extend over a period of 36 years. It will be necessary for the Borough to make an application for ,£20,000 in order that it may be considered by the Board on the 14th March. This information will be of interest to ratepayers, as it will mean that, although the rate necessary to strike on the combined scheme will be s)sd, the rate to be collected should not exceed 4 Lid, a reduction of almost 20 per cent. We commend the steps that are being taken by the Mayor to get the loan secured at bed-rock for the /atepayers. The following is a copy of the letter received by Mr Newman, M.P., from the Secretary to the Treasury on the subject : —• “Wellington, Feb. 26th. 1910.

“ Sir, —In reference to our conversation re loan by the Foxton Borough for ,£20,000 for installation of a water supply and sewerage. If this were granted at per cent, the half-yearly instalments would be £2 8s qd, and if at 3per cent. £2 10s 6d, the whole debt being paid by these instalments —which include principal and interest —in 36 >4 years. The rates quoted will, of course, have to be altered if moneys cannot be borrowed at the above rates. The charge by the Office would be 10s per cent. This would be one charge only, and would not be recurring. No definite promise can be made at present as to whether a loan will be granted or not. All applications must be submitted to the Board for approval. 1 do not anticipate that the rates at which money can be borrowed will be higher than P er cent.