STREET LOAN PROPOSALS

Taranaki Daily News, Volume LV, Issue 241, 1 March 1913, Page 6

STREET LOAN PROPOSALS

KNi :)KSKI) r.V MKKTING ()]■' ]>, \TKPAYKKS. > ■■i'i , iil hundred ratepayers were prc-s.-i. in (In- Theatre IJoval last night al. ii ..leeting convened by the C iinic-l for tin 1 purpose of considering Hie Borough loan proposals which involve the raising of £55,(100 for a .system of electric tramways and £-12.000 for water extension and street work. The Mayor (Mr. (I. W. Browne) presided, and was supported on the platform by I'rs. J .Clarke, W. Ambury, T. L. Buxton. J. E. Wilson, .F. Kibby, anil F. Jackson. Mr. F. Black, consulting engineer to the Council in connection with the tramways scheme was also in attendance. £42.000 LOAN. The Mayor dealt first with the £42,000 loan for street improvement, etc. In placing the Council's loan proposals before you 1 propose to deal with the streets and water loan of £42,000 as a separate issue. This portion of the loan is the result of the pledge upon which you elected us to office at the last election. We were pledged to cany out the Greater New Plymouth scheme to enable the borough to reach a position that would enable you to take a I vote on the best means of providing | cheap transit. In carrying out the Greater \ T ew Plymouth scheme the people of the then outside area were induced to throw in their lot with us on the direct understanding that at the earliest opportunity they would have embodied in any loan proposals the Council were bringing forward the extension of light and water to their districts. At the same time it was pointed out to them that the Council were pledged, to bring down the main portion of a tramway scheme that would, after showing it was self-supporting, be eventually extended to the Vogeltown, Frankley road and Westown district, as the growth of population in their separate areas warrant the undertaking. In the Fitzroy district at the early stages of. the Greater New Plymouth scheme the, people were entertaining certain lOfiri proposals for street and cth&J~4niproveinehts. They were, prevailed upon to hold over their proposals Until such time as the Greater New Plymouth scheme should be completed, on the understanding that their proposals should, form part' of uny loan proposals placed'before the. people. The Council in formulating ■the loan have honorably kerft faith in : t!very instance. As no. doubt all of you "ti'lip have made yourselves familiar with : thxi schedule as sent out through'the [press well know, justiee, has. been '-riveted ' dvtt to every part of the iboroilghj. : The I various items comprising:the-streets'tind I Water loan are as follows: ; - '■■■o.-..y; <;-..■

j Keibing and channelling 013/*; 10; 3 I' .Formation of footpaths ... . 1257 10 0 and sanding 4082 13 9 (Street formation . ,9381.10 ,0 ; -Metalling .V /': ' '3553 10 0 .'Waterworks extensions .. 11,100.0 0 > Engineering & supervisio'h 2000 0 0 ] : First year's interest ... y ~ ; 2100 ;0 0 ] Preliminary expenses, in''''cluding cost of 'raising ;. .. . |.|': '''■ loan '.;,;; ''.'3B7' 0 0 ■ "mlw- o-. «■ /flic Council have no diffidence In asking' "t/hej ratepayers for their unanimous sup'por't of this loan to enable the'inducements held out to be honorably complied with. In carrying out the-proposed Work, now' the ward system ii abolished,' .will enable a satisfactory: and ■ '"scheme to be adopted, working ;'from .the centre outwards and linking up the -,-pa'tc.hwork .methods of. the:.vpas.t,; A ' c yery huge annual saving'would bo effected, on tlie present method of dealing with f 'our footpaths and streets. -At. any . ,fa,te, the bulk of the loan isi going into permanent and non-recurring work. The •:;,ffx,ing of levels and grading will make J it .possible to initiate a more up-to-date j.system of road formation. : ■.■ ' , ,The amount appropriated to ..water I supplies should in a very short time be ' rhor,e than self-supporting. lit raising the loan arrangements would be made J to : lift it in instalments, covering a period of about three years. Under this system money can be obtained, at cheaper rates than when the whole amount is required in one lump sum. ' the expenditure of the first amounts "would go into those, portions of the ' works where the largest returns for the 'outlay could lie effected, thereby reduc- ' ing. to a minimum any. rate that might have to be collected.. - We now reach, the stage where. the individual ratepayer should know to 'what extent he becomes liable'in regard • to rates. As there are some mistaken impressions afloat in connection with > the new valuations regarding the special rates that are levied to meet the annual " interest on existing loans, I want you ' 'to clearly understand that the Council •' have no power to collect a higher 'rate than will provide the sum required ' for that purpose. That is, under the ' 'old valuation the annual value of the < original borough for rating purposes ; - stood at £39,747. To meet the interest 'on. loans a special rate of Is''Gd was levied. The new valuation being an increase of approximately 25 per cent., ' : it will not be necessary to collect the ' 'full special rate of Is Od, but only such a rate as will produce the amount required for interest. In the new area, 'which is only liable, of course, for its ' own special loans, the same remarks will : r a'pply; and only the actual amount required for payment of interest on loans : will be collected by special rate. To provide the interest and sinking fund on, the streets and water loan of £42,000, a special rate of 7M>d in the pound will be pledged to the bondholder. This rate was based on the old valuation, but on the new valuation it would only be necessary to collect 5 7-10ths of a penny to meet the annual interest and sinking fund. To separate the loan: The amount provided for water (£11,800) would require a rate of 1 3-sths of a penny to meet the annual interest and sinking fund. This expenditure would immc- ' diatcly on being completed bring in revenue that would eventually become selfsupporting. The £32,000 provided for streets would require a rate of 4 l-10th of a penny to meet the annual interest and sinking fund. A ratepayer whose annual value amounts to £25 would pay lis W/,d: £SO. £1 3s Od; £7*, £1 15s 71/.d: £IOO. £2 7s Gd. A Id rate on the old valuation produced £352 9s 3d; on the new valuation it produces £440 10s Gd. Before concluding, there is one other matter I want to set you right upon. It has been stated that the Council could raise money and pay up to fi per cent, interest. I want to give this statement a straight-out denial. The law of the land will not permit boroughs to pay more than 5 per cent., only in the "ase of hypothecation by way of temporary accommodation. Tn moving the resolution dealing with the Council's street and water proposals. I have every confidence that you will carry them with a large majority on Wednesday next. The Mayor then moved the following resolution: — That this .meeting of ratepayers approves of the proposals of the New Plymouth Borough Council to borrow by way of special loan the sum of £42.000, for the following purposes:

£II,BOO for extension of waterworks; £30,200 for improvement of the streets of the borough. E. Griffiths, mounting the plat/form, seconded the motion, «„d sa id that although he lived in the suburbs he ■paid several times more rates for property ni the centre of the town than for .suburban, so he was not speaking wholly ifrom the point .of. view of »•-suburban resident. He recalled that the old Fitzroy Town Board loans had been shelved pending the merging into the Borough land those loan proposals were embodied in the present scheme. He stressed the need for kerbing and channelling and improving footpaths, and the economy this would bring about in maintenance. The expenditure of money in street improvement would tend" to encourage building on areas at present umise"d, and these sections, deriving immediate benefit from the expenditure of the loan, would pay their fair share of the cost. The motion was carried without further discussion, and without dissent.