BOROUGH CHAMBERS.

Hawera & Normanby Star, Volume III, Issue 214, 24 February 1882, Page 2

BOROUGH CHAMBERS.

If evidence were needed that we were corre"t in urging full consideration of borrowing proposals it is afforded by a question which has arisen in respect to the erection d^Jßtirougli Chambers. The position seems to be this : there is an annual revenue of about £140 arising from reserves which cannot legally be expended except on these reserves. It is, properly enough, propose.! to apply this revenue to Borough office purposes i.e. either to pay it away ient or in interest on the cost of building oflices. It might be thought that theie would be no difficulty iv at once wisiug money on so good a security, especially seeing that the ratepayers would not be called upon to pay one penny of the interest, and that so substantial a revenue would extinguish the loan iv eight or nine years. But, naturally enough, the banker says, " No ; I cannot lend j r ou money unless I have something more substantial than your promise to pay the rents to me. Another council might come into office, and deem it proper to apply the rents to some other purpose which might be legally construed to be within the moan'ng of the trust." Under these circumstances there seems to be two courses open, either to let the money already in hand on this account and that which will accrue yearly lie idle, or else to raiae the money by loan in the ordinary way, on the understanding that the accruing rents shall meet the interest payable annually on that portion of the loan. The latter seems the most reasonable course, and we should say decidedly that when a loan is raised, it should include a sum necessary for the erection of borough chambers. It would nominally increase the amount of the loan, but would not iucreasc the burdens of the ratepayers one jot.