BOROUGH LOAN PROPOSALS.

Northern Advocate, 21 February 1911, Page 5

BOROUGH LOAN PROPOSALS.

MEETING OF BURGESSES,

SCHEMES EXPLAINED,

Enthusiasm over the borough loan proposals was not hot enough to set the Theatre Royal on fire at the explanatory meeting held in that building last night, and the attendance was meagre in proportion to the importance of the occasion. Some 100 burS&sses occupied the auditorium to hear the proposals elucidated by his Wor■sbip*the Mayor (Mr T. H. Steadman), ▲ who had associated with him on the " platform Councillors J. Dent, J. R. Reyburn, D. M- McLeod, and J. Harrison. The Mayor, in prefacing his .said that no doubt, the burgesses woulc think that the Borough Council had done little to improve the roads and footpaths during the past year, but the ■ fact was that there had not been money to do anything with. He found on taking office last May that there were outstanding accounts of £1500 to meet. From the 31st March the Council would have anticipated the whole amount available. He also found'that the previous Mayor had put into the Borough funds a sum of £500 odd which would have to be used for paying the drainage contractors. He (Mr Steadman) could not possibly provide sufficient out of the present rates to repair the streets .and footpaths, and it had become nec--ess&ry to augment the revenue if efficient repairs were to be carried out. During the preparation of the estimates, he had measured 722 chains of footpaths, which required immediate attention, 844 chains which were badly in need of channelling and kerbing, 139. chains of new road to be formed, 308 chains of metalling to be replaced and renewed, while he" helc* that a total length of 707 chains of footpaih. sljbujd'be tarred and sanded. would have to be

to the rating of burgesses -outside the drainage area.. H the loan • proposals could have been put" forward on the new valuation the rate security to the Government would liave been only about half that which now had to be offered on the old scale, and if the sum were over requirements that balance could go towards relieving the future. The Mayor pointed out that the four sections of the loan were independent of eacl other, and any one, or all, might be •either carrietl- or rejected. The first section was as follows: —

A Special Loan of £19,200 for the purposes of formation and construction of Streets and Footpaths and for Surface Drainage of the Borough of Whangarei. And to make an Annually Recurring Special Rate of 25/30 of a penny in the pound on the Capital Value of all rateable property in the said Borough as security for the interest and sinking fund in connection with such Loan.

The Mayor pointed out in reference to the foregoing section that it had become all the more necessary to go beyond the ordinary revenue because the cost of road metal had rapidly gone up from 5s 6d per cubic yard to 9s 6d, "when actually spread; also that wager, liad risen, though the amount of work

obtained was no greater,

The ob-

jection raised that an engineer had not Tieen procured to take levels, lay off the work, etc., before taking a poll vn the proposal, meant doing the work backwards. There was no money for ■such a purpose now, but if the proposal were carried money would be available, and they could then secure a

•competent engineer. They could only spend the money satisfactorily by employing an engineer who was thoroughly capable. He had been ask«d on what streets the money would be spent, and* the answer was, on those i.cc ding most attention and on which

it was competent to expend the money. Jt should.be clearly understood that the loan money could only be used lor construction work, and could not

"be spent on repairs'. They would require a steam roller costing anything from £450 to £750; a steam road -waggon of five cubic yards capacity,

costing from £550 to £900 according

to power; and a crushing plant to deal "effectually with the quarried ©tone. Such a plant would cost £270, screens £70, and permanent erection £400. One matter which had not yet been attended to, and which would

come within the scope of this proposal, was the drainage of the surface water from the channels. That would in\olve a cost of £2000 for cesspits and tiles to carry the water off. The surface water was not dealt •with by the present drainage, and could not b,3 incorporated with it Buildings wherein to house the appliances and the purchase of a footpath construction plant meant another £300. The proposed rate for this loan section of 25/30 of a penny in the £ •would be decreased later under the i>ew valuation. This loan could not

be allocated in separate sections for

particular streets, but would have to jk.be treated as a lump sum. The second f section of the loan proposals was as follows:—

A Further Special Loan of £800 for the purpose of constructing a Bridge in Walton-street over the Waiarohia Creek. And to make an annually recurring Special Rate of 1/30 of a penny in the pound on the capital value of all rateable property in the said Borough as security for the interest and sinking fund in connection with such Loan. No special comment, said the Mayor Tvas needed anent that proposal. It was a straight-out, compact scheme, and they all knew the urgency of it. The third had been drafted in the following terras:—

A Further Special Loan of £800 for the purpose of acquiring a site (if necessary), and building Municipal Hall, Library, and Offices thereon. And to make an annually recurring Special Rate of (l/o) onethird of a penny in the £ on the capital value of all rateable property in the said Borough as security for the interest and sinking fund in connection with such Loan.

The Mayor said that he had prosecuted inquiries in other borough?, and had come to the conclusion that the style of the Cambridge town hall would be best adapted to Whangarei's reeds. That hall had cost £6000 without the site. He did not need to expatiate on the need of a town hall in Whangarei. They all knew how necessary it was, and how great an ornament ss well as a public convenience it would be. The fourth and iinal proposal was as follows: —

And a Further Special Loan of £550 for the purpose (with the assistance of the Government subsidy offered) of acquiring the Bush Clad Hills on the West of the Borough or, so much of them as is now offered to this Council, as a Scenic Reserve and Park for the inhabitants of the Borough. And to make an Annually recurring Special Rate of (1/40) one-fortieth of a penny in the £ on the capital value of all rateable property in the said Borough as security for the interest and sinking

fund in connection with such Loan,

That proposal, the Mayor said, would insure the bush clad hills to Whan-: garei for all time, and they had to remember that only half the buying price had to be raised by the borough, as the Government had promised to give a £ for £ subsidy.

The loans for roads and the Waltonstreet bridge, his Worship pcirW out, could be obtained under the Loans to Local Bodies Act, and he had that day received provisional approval from the Department, which was willing to grant the loans on the borough guaranteeing proper security. The loans for the. town hall and the scenic reserve would have to be obtained from other sources, but he believed it was possible -to borrow outside the Department quite as cheaply (Applause). In response to questions the Mayor said that:— The cost of the plant for road and footpath construction would be partly spent out of the loan. Surface drainage in each . street would be paid for out of the loan money. The additional rating necessary would amount to y 2 d per £100 worth of property under the new valuation.

Five per cent, of the loan would provide for the whole administratior i.nder a competent engineer.

The rate per £100 for interest and sinking fund would be £4 17s 6d, the Interest absorbing 3% per cent.

They could not get the whole amount of the loan all-at once, but only so much per annum.

Cr. Harrison said there ought to be. no doubt in anyone's mind how the whole matter stood, after the Mayor's clear and complete explanation. If Whangarei wished to progress in ratio to its importance they would Irave to borrow the money. Then the work could be done satisfactorily and. permanently, and the repayment would be distributed over a considerable per:cd of time. Quite enough room woulc be left for the expenditure of the ordinary rates after the loan had been procured. He was distinctly in favor of adopting the whole scheme as presented. One thing which he Avished to emphasise was that the money would not be for the present Borough Council to expend. Long before it became available the burgesses would have fin opportunity of electing as members of the Borough Council those whom they thought best qualified to deal with the expenditure.

Mr D. W„ Jack obtained leave to nropose the following motion:—"That in the opinion of this meeting the proposals will be a good thing for Whangarei and should be carried, and that a poll be taken on the proposals."

Mr S. Bedlington seconded the motion, which was carried on a show of hands without dissent.