LOAN OF £95,000

Sun (Auckland), Volume III, Issue 718, 18 July 1929, Page 1

LOAN OF £95,000

ONEHUNGA MAYOR’S SCHEME FOR RELIEF ROAD IMPROVEMENTS The Mayor of Onehunga, Mr. Edward Morton, has formulated a progressive scheme for the relief of unemployment in the borough. He proposes to borrow £95.000 to lay down in permanent material the unfinished roads and footpaths. JTE points out that the present council has reduced the rates for the current year by id in the £. and if the loan is carried, the rates next year will have to be increased by in the £. Mr. Morton estimates that the interest and sinking fund on a loan of £50,000 will ,-amount to an annual charge of £4,000 and that this sum can be taken from the general revenue account, which at present furnishes £7,000 a year for the maintenance of roads and footpaths, thereby involving no increase in rates. The remaining £45,000 would mean an annual charge of £3,600 which could be derived by striking a special rate equal to |d in the £. He therefore contends that the interest and sinking fund on £95,000 would involve a total increase in rates equal to 2d in the £ on the current year’s basis, or |d in the £ on the rates paid last year. The proposal is to be discussed in detail by the council in committee on Monday evening when, if approved, definite allocations will be made for expenditure on specified streets and footpaths. If the loan is carried with the above stipulations, Mr. Morton estimates that an annual sum of £3,000 will still be available from general revenue for ordinary maintenance work.