CITY FINANCE.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 15

CITY FINANCE.

SPECIAL ORDER LOANS. RENEWALS AT LOWER RATES OF INTEREST. The City Council, at its meeting next Monday evening, will' be asked to confirm • certain special orders authorising the raising of four loans aggregating £23,415. In the case of three of the loans the Council is exercising its option to repay them with the view of raising the residue of tho amounts still owing at a lower rate of interest than that at which the loans originally, were raised. In the case of the fourth loan, repayment of which was due on June 30frh last, the amount to' be raised is the difference between the amount of the original loan and the accrued sinking fund.

The Municipal Buildings Loan Redemption Loan, 1930, of £4870, is to pay off the amount mentioned, which represents the residue of a loan of £5600 after deduction of sinking fund. This loain was in connexion with the purchase of the site of the present municipal buildings, and was raised in 1920 at 6J per cent., repayable on June Ist, 1935, or, at the option of the municipality, five years earlier. As the Council can get money at present at 5J per cent., it decided to exercise its option. The Destructor and Sanitary Works Loan, 1930, of £7200, is to repay the residue of a loan of £18,500 raised in 1901 at 4 per cent., and repayable on June 30th last. Accrued sinking fund amounts to £11,300, and the new loan represents the difference between the amount originally raised and the amount of sinking fund accrued. The Sanitary Works Redemption Loan, 1930, of &4845, is in respect of a loan of £7OOO raised in 1920- at 6j per cent, with a currency of 15 years, or of 10 years at the option of the municipality. The Council is exercising this option, and is thus saving 1 per cent, interest. The Linwood Public Redemption Loan, 1930, of £6500, is in respect of a loan of £7500, raised in 1920, at 6-J per cent., with a currency of 15 years, or of 10 years at the Council's option, and it has been decided to exercise that' option. The special order in respect of each loan stipulates that the rate of interest shall not exceed 5} per cent., and appoints the City Sinking Fund Commissioners (Messrs J. K. Archer, J. g, Nevillo, and. A. McKellar) .the sinking fund commissioners for each loan.. JVith

the exception of tho Sanitary Works Redemption Loan, the term of which is not to exceed 15 years, the term of the other loans is not to exceed 20 years. In the case of the Sanitary' Works Redemption Loan the sinking fund is to be at the rate of £4 12s Od per cent, per annum; in respect of the other loans 3 per cent, per annum.