M.E.D. BUDGETS FOR LOSS

Press, Volume LXXXIX, Issue 27073, 23 June 1953, Page 8

M.E.D. BUDGETS FOR LOSS

LOAN OF £200,000 TO BE RAISED RECORD CAPITAL OUTLAY PROVIDED FOR A deficit of £1416 is estimated in the operating, account of the M.E.D. this financial year To meet the record capital expenditure proposed, a loan of £200,000 will be raised. The electricity committee reported to the City Council last evening that the deficit would be caused by shortage of revenue on the new charges during April and May, when some domestic accounts were charged at the old rates during the changeover. The position will be corrected in future years when a full year’s revenue comes to hand.

The second part of the estimates covered the financial provision for a record capital expenditure of £306,500, together with other necessary provisions required by the council. A total sum of £375,000 will be necessary, of which £150,000 will be financed from the department’s own resources, and the balance of £225,000 from loan moneys.

The committee recommended to the finance committee and the council that loan authority be sought for the raising of a new loan of £200,000 for a term of 20 years. However, in order to meet the market, it proposed to borrow the above amount xor an initial period of 10 years, and to refinance at that date for the balance of the loan then outstanding.