HOSPITAL FINANCES.

Hawera Star, Volume XLVII, 13 March 1928, Page 4

HOSPITAL FINANCES.

PRESENT SYSTEM OF REPAYMENT FAVOURED. DECISION OF ELTHAiM BOROUGH COUNCIL At the meeting of Eltham Borough Council last evening, the question of the new method of finance re the Hawera. hospital Avas discussed, and, by a large majority, the present system of capital repayments Avas favoured. The. Mayor submitted a schedule showing how the proposed neAV method of finance would affect the leA 7 ies of the borough for capital repayment purposes and interest on the building oA 7erdrait.

Under the present schedule of repayments levies for these purposes Avould cost the council £2799 9s 6d over a term of ten years. Under the suggested schedule of repayments the levies on the council for til© first ten years would be £2216 7s lOd, but over a further period of nine years the council would be called upon to pay a further £1305 6s 4d, mailing a total of £3521 14s 2d, as against £2799 9s 6d under the existing scale of repayment. The saving involved in the yearly payments during the early stages of the loan by the alteration of the term of repayment was small as compared Avith the payments Avhich would be necessitated after the expiration of the term of the original loan. The decrease in levy was only £lO4 14s 3d for the first year, further decreasing to £43 13s 5(1 for the ninth year, Avhereas in the eleventh year the levy Avas £177 5s lOd. Under the existing scheme no repayment would be necessary in the eleA 7 erith year, as the loan would be paid off at the end of the tenth year. A further table was submitted showing how the proposed alteration would affect the average householder with a property 7 ' valued at £750. Under the present scheme he would be called upon to pay £3 17s 2d over a period of ten years, whereas under the amended schedule he would pay £3 Is during that term and. a further £1 16s over the additional period of nine years. The actual saving in rates during the first ten years Avould average Is 7j)d per year, which was trifling as compared with the et 7 entual additional cost of the extended repayments. The committee reported that it had carefully considered the effect of the proposed extension of the term of the Hawera Hospital Board’s building loan upon the finances of. the council, and was of the opinion that the interests o(' the ratepayers would be best served by continuing the existing system of capital repayments. The report Avas adopted.