FINANCING MAIN HIGHWAYS SCHEME.

Shannon News, 17 March 1925, Page 3

FINANCING MAIN HIGHWAYS SCHEME.

£I4OOO TO BE RAISED BY DEBENTURE ISSUE. HOROWHENUA COUNTY COUNCIL'S PLANS.

At Saturday’s meeting of the Horoj whenua County Council further proI gress was made towards the commencement of the Main Highways I scheme, authorised by the ratepayers last year, when the Finance Committee brought down definite proposals

j for the raising of the money necessary for first year’s schedule of I work, and also for the £I4OOO necessary lor machinery. The report was as follows—

‘Your Committee have to report that since the last meeting of the Council general enquiries have' been made in regard to the raising of loan j money for Main Highways purposes and that they are now awaiting developments from certain sources. “Machinery Loan of £14000: Alter due consideration your committee recommend that the term of this loan he for a period of 12 years and that the Council advertise in ioeal and VVellington papers soliciting applications for the purchase of debentures in denominations of not less lhan £IOO at a rate of interest pi 5^ ’per cent., repayable (in Instalments ol £SOOO and £7OOO, in 5 and 12 years respectively. “Bank Overdraft: In order that the Council might proceed with the Mam Highways scheme according to schedule, your Committee recommend that pending arrangements being completed for loan money, arrangements be made with the Bank for a

temporary overdraft of £IO,OOO. “Transport; For general purposes ,m connection with Main Highways your Committee recommend the purchase of a Ford car for the Assistant Engineer, the cost of same to be a. charge against the loan. “Staff: Your Committee recommend

the transfer of Mr C. Frechtling to the Engineering Staff at a salary of £2 10s per week and the appointment of an qffice. junior to fill the vacancy on the office staff. ONE THIRD OF A PENNY RATE STRUCK.

' It was.also decided that in order to cover the loan of. £90,000 which was the sum of the Council's contribution to the cost of the work proposed, a rate of 1-3 of a penny in the pound be struck, it being pointed au.t. that it. was hoped to be able to carry on without collecting this rate, owing to the saving anticipated as the result of the reduced cost of maintenance. The resolution, carried was as follows: “That in pursuance and exercise of the powers vested in it in that behalf by the Counties Act, 1920, and the Local Bodies’ Loans Act, 1913, the Horowhenua County Council hereby resolves as follows: —

“That for the purpose of providing the interest and other charges on a loan of £90,000, authorised to be raised by the Horowhenua County Council under the above mentioned Arts for the purpose of providing iho Council’s contribution under the Mam Highways Act, 1922, towards the construction of main highways in ihe County of Horowhenua, together with the necessary plant and machinery therefor, the sai(i Horowhenua County Council hereby makes and levies a special rate of one-third of a penny in the £ upon the -rateable value of all rateable property in the County of Horpwhenua, comprising the whole of the County of Horowhenua; and that such special rate shall be an annual reciurring rate during .the currency of such loan, and be payable on me first day of April in each and every year during the currency of such loan, being a period, not exceeding 36£ years, or until the loan is paid up.’’