Feilding Road Sealing Proposals

Manawatu Times, Volume 59, Issue 212, 5 September 1934, Page 3

Feilding Road Sealing Proposals

PLACED BEFORE CHAMBER OF COMMERCE SUPPORT FOR MAYOR’S SCHEME Following the conclusion of tho business at Monday’s meeting of tho Feilding Chamber of Commerco tho Major (Mr. C. E. Taylor) accepted tho invitation of tho meeting to place before it his proposals for the raising of a loan of £6OOO, spread over threo years, for tho purpose of permanently sealing certain thoroughfares in the borough. In introducing tho subject Mr. Taylor reminded tho meeting that leifding’s gross debt which totalled £IBO,OOO, was rather large especially when compared with towns of a similar size, namely Dannovirke, with a gross debt I of £90,000, and Hawora with a gross debt of £120,000. With a knowledge of the indebtedness of tho borough, the council over the past seven years had given very careful attention to its finances and in that period had floated two loans, ono of £IOSO to complete the charges on tho water supply improvement contract, and tho other of £ISOO for Feilding’s sharo of tho Aorangi bridge, making a total of £2550. Actually then Feilding’s debt had only been increased by that sum over the past seven j-cars. Against that Feilding had paid over the period of seven years £25,596 into the several sinking funds in respect of borough loans and the net debt of tho borough to-day stood at approximately £140,000. It had also to be remembered that tho rato in tho £ had been substantially reduced and today Feilding was collecting just on £15,000 in rates as against £IS,OOO three or four years ago. Of tho rato revenue to-day £IO,OOO was required to meet interest and sinking fund, £llOO for Hospital Board levy, £375 for Fire Board levy and £2OO for subsidies. These fixed commitments aggregated £11,700, leaving £I2OO plus incidental revenue for tho borough to carry on with, Mr. Taylor was satisfied that tho council could do tho work proposed without any increase in tho rates for the reason that it would have availablo savings made in connection with tho loans conversion scheme which operated in October next. His idea was to spend £2OOO a year of tho £6OOO loan and if this was agreed to (lie council would have no difficulty in meeting tho charges on tho loan. Next year would find the council carrying tho full weight of tho interest and sinking fund charges and it would have nothing to spare but after that the position would commence to easo up by virtuo of the redemption of debentures under flic conversion scheme. Provided there were no further applications for revaluations in Iho borough Mr. Taylor was satisfied that (ho council could do tho work without interfering with the present, rate in the £. If, however, the ratepayers turned the loan proposal down, then the council would bo obliged to increase the general rato by approximately §d in the £ to provide the additional. revenue required to put the roads in order. Many of tho streets concerned required urgent attention and failing the adoption of tho sealing programme then the council would have to increase the rato to make available money for improving tho roads. If tho valuations continued 1o be reduced the council would bo faced with having to meet the revenue lost aud it was in the mind of the council to impose a small sanitation charge of each of tho preniiscs, say of ss, to meet this situation. He, however, did not anticipate that tliero would be many further substantial revisions of valuations in the borough for it appeared to him that the position had very nearly adjusted itself. Tho members discussed the question, after which a, resolution was carried thanking the Mayor for his candid and explicit statement of tho position and agreeing to support the proposal for the raising of a loan.