SEWERAGE SCHEME.

Franklin Times, Volume XXII, Issue 58, 20 May 1932, Page 5

SEWERAGE SCHEME.

A REVISED APPLICATION. SANCTIONED BY LOANS BOARD. ■j\ -ANOTHER £14,000 REQUIRED. SPECIAL RATE OF NECESSARY. ARRANGEMENTS FOR LABOUR. The Pulcekohe Borough Council has a : further step in connection . with the proposal to instal a sewerage system in the town. At Wednesday's council meeting, the special committee .set up to prosecute the reported as follows: "Your committee begs to submit the .following report on the matter of -drainage loans. Pursuant to the direction of the •council in meeting on December 16, 1931, and after conference with and further investigation by the drainage • engineer, Mr T. V. Gulliver, a revised ■application was forwarded to the Local •Government Loans Board on February 19, for a £14,00* drainage loan sanction. "Subject to Conditions/' In meeting : on May 4 the Loans .'Board issued the sanction applied for subject to' the following conditions:— (1) That the term for which the .loan is borrowed shall not exceed .thirty-six and a half years. (2) That the rate of interest payable -in respect of the said loan shall not .exceed five pounds (£*s) per centum per annum.

(3) That the local authority shall, ..before borrowing the said sum or any ;part thereof, make provision for the repayment thereof by establishing a sinking fund of not less than one pound (£1) per cent per annum calculated on the amount raised. (4) That no portion of interest or sinking fund shall be paid out of loan moneys.

(5) That the local authority shall not enter into any contract for pay-

ment of brokerage at a rate exceeding one half per cent on any sum borrowed pursuant to this sanction. (6) That if the money cannot be :raised at per cent, or at 5£ per cent

-on the instalment repayment system, the work should be postponed. (7) That the sum of three thous-

and pounds (£3,000) being part of the loan authority held by the Pukekohe Borough Council in respect of the -drainage loan, 1922 of £16,000, be cancelled in accordance with the provisions of section 118 of the Local Bodies' Loans Act, 1926. '; \ ' ' Relative to the £14,000 sanction now ; granted and the original amount of £23,000 applied for, the Committee

would make the following explanation: V In respect of this application the -.finance was to be arranged as under: — Loan moneys already raised and in [hand, £1250.

Balance of loan authorised and secured by special rate on whole borough, £B,OOO. New loan required, £23,000. Total cost, £32,250: The engineer's estimates (£32,119) • submitted in support of the application were approximated as follows: Labour (unskilled, £1925), (skilled, £12075) —£14,000. Materials, £15,500. Engineering, etc., £2,500. • Total, £32,000. Revised Application. Finance for the revised application is proposed as under: Loan moneys already raised and m Lhand, £1250. Loan,yet to be raised, being portion -only of £BOOO already authorised as -.-security for which a special rate is ..pledged on the whole borough, £5,000. New loan, as security for which a .special rate will be pledged on the area only, £14,000. Total, £20,250. The engineer's estimates in support of the above wei'e amended and reduced as follows: —

Estimated saving in labour arising from use of unemployment relief scheme, £9879. Reduction in estimate of materials and engineering fees, etc., £2030 £11,909. Finance as stated, £20,250. Total, £32,159. Relative to labour costs, it is es-

timated that if the council provides £jf!o2 on account of skilled labour, and £3019 to meet accommodation, transport, insurance, and supervision of unemployed labour, this provision will be ample to meet all such expense and allow a margin for contingencies. Assuming that unemployed labour is made available for the work therefore, the approximate cost to the borough of the complete scheme will be: Labour, £4121. Materials and engineering, £15,970. Total, £20,091.

The special rate necessary for the new loan of £14,000, to be struck on the drainage area only, was stated in ' the application as Jd in the £ on capital value, the proceeds amounting to £1022 being sufficient to meet the annual charges on £14,000 at 54 per cent interest and 1 per cent sinking fund with the usual 10 per cent statutory margin. A Verbal Assurance. In answer to a question the Mayor, Mr .T. Routly. said an assurance had been given verbally by Mr W. Bromley, a member of the Unemployment Board, and Mr W. Slaughter, officer \m charge of unemployment for the

Auckland district, that the labour re-

quirements would be forthcoming. Mr Routly continued by saying that what he had in view was the making of definite arrangements with the Unemployment Board for the necessary labour before placing the loan proposal before the ratepayers. If satisfactory arrangements could not be made with the board he would not be a party in favour of placing the matter before the ratepayers, but he added, "we have been assured that as much suitable labour as required will be forthcoming." Proceeding, Mr Routly said that there was an old standing authority for raising £BOOO spread over the whole borough, but under the conditions of the Loans Board's sanction, £3OOO of this had to be cancelled, which left £SOOO to be spread over the whole borough. Questioned by Cr. P. A. Miller as to the extra rate required to be levied over the whole borough to meet iri- ! terest and sinking fund over the £SOOO, i Mr Routly replied that the cost would j be approximately 8/- per £IOOO of ; capital value. j The report was adopted on the > motion of the Mayor, seconded by i Cr. A. T. Begg. j The * Mayor and town clerk were j | asked to proceed with negotiations j j with the Unemployment Board, with a i | view of making satisfactory arrange- j ' mentis for the necessary free abour. I