LOANS LOOMING UP

Taupo Times, Volume III, Issue 141, 8 October 1954, Page 4

LOANS LOOMING UP

AS reported in this issue of the "Times," the Borough Council deputation which recently visited Wellington, in connection with Borough business, took the opportunity of interviewing the Secretary of the Local Government Loans Board with regard to possible future loans for roading and water-supply in the Borough. The reference in the report to loans for these purposes of £28,000 and £100,000 respectively gives some indication of the problems arising from the provision of needed amenities in a rapidly growing town. At the present time the Borough's loan commitments comprise £5000 for completion of the War Memorial Hall; £5500 for municipal stafF housing; £5000 for A.C. Baths reconstruction; £1840 Fire Engine loan; and £204,500 for Electricity Department loans. Of these loans, the Fire Engine loan, raised through the Fire Service Council, is repayable over a period of ten years and no rate has been struck for same, the anticipation being that it will be repaid from the General Fund. It is hoped that the Hall, Housing and Baths loans will be self-supporting. The Electricity Department loans are of course in the latter category. The total of £204,500 for these loans includes the sum of £48,000 recently authorised but not yet actually raised. Of the total loans so far authorised or actually raised, it is to be noted that the small Fire Engine loan is the only one actually likely to be payable from rates. The others seem certain to be self-sup-porting, with the possible exception of the . Memorial Hall Loan, though in this case revenue may be expected that should not leave much of a gap to be bridged. With regard to the loans mentioned in connection with the deputation's visit to Wellington, the

£28,000 roading loan is the suggested road sealing loan for a number of principal roads in the Borough, as outlined in the "Times" earlier this year. The £100,000 loan is suggested for the provision of a water supply, a matter that has been before the local authority over a period o£ years. Both these proposed projects are in the preliminary stage of having specifications and estimates prepared, and the amounts mentioned are, of course, approximations only at this stage. It would appear, however, that both amounts are reasonably close to what detailed estimates may later show to be required. The Borough's rates at present are a general rate of 5fd, a library rate of -£d, and a Hospital rate of fd, making a total of 6id in the £ on the unimproved value. Of these, the Hospital rate is levied to raise the amount payable under statute to the Waikato Hospital Board. Such a rate will be payable in next rating year, but it has been stated that the Government intends to abolish this method of raising Hospital revenue thereafter. It would appear that the two suggested loans, if totalling £128,000, would require for their repayment additional rates totalling about fourpence and four-fifths in the pound. This figure might, of course, be affected by a system of metering water supply and charging on the amount used. It might also be affected, within a yew years by the possibility of Electricity Department profits being transferred to assist in paying loan charges. Inx investigating the Borough's requirements in the way of the amenities mentioned, the Council is facing up to the problems of progress. The probable cost will obviously be considerable, but it seems that it is a price that will have to be paid, in the near future.