LOAN REPAYMENTS

Hawera Star, Volume XLIX, 21 January 1930, Page 6

LOAN REPAYMENTS

COUNCIL’S NEW ARRANGEMENTS.

HAWERA BOROUGH RATES. The, following statement of re-ar-rangements made in connection with loan matters during the current financial year was submitted to the meeting of the Hawora Borough Gouneiil last evening by the Town Clerk (Air H. S. Elliott): — On the £6200 antecedent liability loan (matured July 12 last), -the sinking fund amounted to £IO2B 12s 3d. The general account provided £l7l 7s 9d and a new loan was raised (term 20 years) of £SOOO. The new loan is repayable, together with interest at 5) per cent, by 40 half-yearly installments of £207 13s- 2d.

The general fund provided £BSO of the £12.850 consolidiation repayment loan which mattired l on January 16, and a new loan of £12,000 for a. period of 20 years was raised. Together with interest at 5.V per cent., the new loan is repayable by 40 half-yearly instalments of £498 7s 7d.

The sinking fund on the £2700 waterworks improvement aop ay men t loan (maturing on February 10) will be £692 17s Oil and tlie general fund will provide £7 2s Gd. A new (loan of £2OOO is repayable with interest at 51 per cent, by 30 half-yearly instalments of £9B 15s. The total amount of tho loans made by the council has decreased' 1 by £2750, but the. rates will total 89/IOOOd more, and this, on an unimproved value of £677,188. represents an .increase of L'2sl 2s in annua! charges. I “Against the increase in rates, however, it must ho remembered that whereas ’previously there was no sink- ! ing fund, in respect of £12,850 loan, and those in connection with the £6200 and £2700 loans were 2 per cent,” stated Air Elliott. “Under the new arrangements provision is made for repayment by instalments in connection With 'all the loans —approx i mutely 3 per cent, on £17.000 and 4 per cent, on tlie other £2OOO. This means that where in the past 'provision was made lor paying off £172 per annum, m the Ttriro the amount will be £590, or an increase of £4lB, and at the end of the respective terms each loan will be definitely extinguished. Further, it must be borne in mind that the £2OOO loan is practically a new loan to provide for the part cost of the water booster, as, if this had not been decided on. moneys 'available in the general account would have been used to extinguish this loan at maturity. Hence, treating this as a new loan fornew work ias distinct from the position of the old loans, the annual charges, £217 ss, deducted from the above-men-tioned increase of £251 2s in annua! charges, would reduce that item to £33 17.”

The rates struck under the original loans were ias follows :—£12,850 (272/lOQOid) ; £6200 (191/10009,); £2700 (76/iOOOdl; total, £21.750 (539/1 OOOd).

The rates to be struck for the new loans are as set out: —£12,000. (389/ lOOOd) ; £SOOO (162/lOOOd); £2OOO (77/ lOOOd); total, £19.000 (628/1000d).