HOROWHENUA COUNTY HIGHWAYS.

Manawatu Herald, Volume XLVIII, Issue 3678, 16 August 1927, Page 2

HOROWHENUA COUNTY HIGHWAYS.

£25,000 LOAN. By a recent decision of the Horowhenua County Council a further instalment of £25,000 is to be raised in connection with the main highway loan authorisation of £90,000. This sum is to be lifted in one amount of £15,000 on a table mortgage basis, and in another sum of £IO,OOO, the former from a private company and the latter from the Public Trustee, both loans for the period of 36-4 years. At Saturday’s meeting of the council, when this course was decided on, the chairman (Mr. G. A. Monk) pointed out that by the means suggested by the Finance 4 Committee a sum of over £lOBl would be saved in the actual repayments over the 364 years. When the council originally took authority for the highways loan, added the chairman, this was on the basis of 54 per cent., with a 1 per cent, sinking fund. However, the council had not been able to raise any of its money at 5$ per cent., while in some cases, particularly in regard to the machinery loan, its sinking fund has been considerably increased in order to eliminate the liability for a short period. The result was that the rate of one-third of a penny struck over the whole district as security for the loan was insufficient. This rate had not yet been collected, and it would now be necessary for it to be increased by resolution of the council. This course was accordingly adopted by the council, and the rate inrreased from'' one-third to threeeights of 'a penny.