Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. THURSDAY, NOVEMBER 6, 1884. TRE BOROUGH LOAN.

Manawatu Standard, Volume VIII, Issue 127, 6 November 1884, Page 2

Manawatu Standard (PUBLISHED DAILY.) The Oldest Daily Newspaper on the West Coast. THURSDAY, NOVEMBER 6, 1884. TRE BOROUGH LOAN.

At the meeting of the Palmerston North Borough Council held last night, the Progress Report of the Special Committee (Mr G. F. Hawkins, Chairman), appointed to consider the question of raising a Borough Loan 0f^50.,00Q-was read, and its consideration postponed for a fortnight, to enable the Councillors to make themselves thoroughly acquainted with the proposals contained therein andarriveatcorrect conclusions wijh regard thereto. The Report reads as follows :•*— Your committee met on the appointed date, and they propose after due consideration (I)— That any loan scheme to/he adopted should include a water supply for the town and lighting. (2) — And should include a system of sewerage and drainage for the town, and that the natural water courses m the Borough should be utilized to the utmost m carrying out the same for surface drainage only. (3) — That the whole of the roads throughout the Borough should be finished and completely formed and metalled including Do-main-street, Lombard-Street, and Linton-street. (4) — That negotiations should be entered into with a view of opening communication with Lombard-street and Cubastreet, and a sum set aside out of Loan to pay the expenses of same. (s)— That each ward should be allocated its full share of the money expended for roads, including formation, metalling and culverts, such division to be made upon the basis of a Loan of^ J 60,000, the money already expended out of the «£lO, 000 Loan to be taken into account so as to equalize the benefits of the total Loau, throughout the Borough m the past and present. Your committee submit that a loan of .£50,000 might be floated m London for the above purposes at a maximum rate of £5 per cent, and that the . .£50,000 so raised should be appropriated (1 ) — To finishing, forming and metalling the streets of the Borough as suggested above. (9r)— ln carrying out the sewerage system and surface drainage. (3) - — In carrying put a water supply and lighting. (4^ — In providing for the outstanding Loan which will become payable, by. instalments after the year 1838, the whole to be repaid within a period of three years thereafter. — The first year's interest to be retained out of Loan for current administration for the first four years after loan effected. As to the ways and means, that we find that the income of the Borough for the present year is as follows :— ? Rates, Licenses, 1&300; Rents, L 80; Impounding, LSQ; Total, L 1378. Add special rate which the Council would be permitted to strike m case the Loan is effected, at Is m the L would produce L94B,' giving a grand total income of L 2,326. If water supply and lighting are carried out. it is reasonable to conclude that the re- ; venue payable throughout the Borough for water supply alone would amount to say L4JQp,, and that lighting would not involve loss. Adding to the former amount the reyen ue derivable from water supply would make the total, income equivalent to say L&,726, which would be equal to a borrowing power of Ls4,2ooatsper cent. Itisalsoreasonable to expect that the rates will increase at the rate of at least L2O per annum, even without

the expenditure of Loan, but considerably more with it. Of course the Loan if floated would not be required for outlay except m instalments, and we are led to believe that if the Loan is floated at 5 per cent, the surplus money m hand could be invested for long terms m the Bank at a profit, after deducting commission and charges of raising Loan. The total Loan would thtjl consist of Present Loan to be repaid i?l 0,000 New Loan 50,000 .£60,000 Should the Council and ratepayers approve of the Loan, we consider that it should be effected for not less than 21 years. There could "be | pledged as security for the interest on Loan aiid wherewith to provide for contingencies the following, viz., Special rate of Is including expected increase of L2O annually, L96'6 j proportion of revenue from waterworks say L 350 ; interest from deposit of LI 0,000, L 500; from current revenue, LI ,000; present special rate for interest on present Loan, L 48 4; Total, L 3,300. This will provide interest at 5 per cent on) the proposed Loan, and also interest on the existing Loan ofLlo,oooj| leaving a sum from general revenueof'Li|7B contingencies. The! working expenses of the Borough/ are JL963 10s, towards which L 378, is provided for as above shewn, leav- ! ing a deficiency of L 585 10s, which,: judging from the past experience of the increase m the rateable value of the Borough after the expenditure of LI 0,000, it si reasonable to expect will more than make up m the future increase of the rateable value at the end of the period when this Loan of L 50,000 shall have been expended. Your Committee, before further reporting, desire authority to employ professional assistance to en-: able them to report as to the cost of the several works suggested, m detail, after which the ratepayers at the same time as assenting or rejecting the proposal could be consulted separately, as to what works should be carried out, and what, if i any, rejected. We shall on our part take an early opportunity of further consider- 1 ing the above proposals, which should, be carefully perused and thoughtfully considered by every ratepayer, the whole question of a Borough Loan being one of such obvious importance to the burgesses that it should receive the fullest and most scrupulous attention at their hands.