MOUNT EDEN AND THE CITY.

New Zealand Herald, Volume LXIX, Issue 21110, 18 February 1932, Page 12

MOUNT EDEN AND THE CITY.

Sir, —" Amalgamation" in his letter of February 17 says that " be hopes ratepayers will not be deceived by vague promises that rates will be reduced as existing loans aro paid off." These promises are not vague and ratepayers will not be deceived, because the prospect of future reduction is founded on fact. Mount Eden's works are practically finished, and in tho future our expenditure will bo confined to maintenance. Therefore, whatever rate it is necessary to strike this year must be tho peak to which our rates can rise. But what of tho city? Can she hold out the prospect of future reductions to her ratepayers? 1 think not. With large expenditure still required for Tamaki and Avondale, and tho prospect of being saddled with Mount Albert, the city ratepayers have nothing to look forward to but increased burdens, and if Mount Eden joins up we will have the doubtful privilege of assisting the city to bear them. It is to be hoped that Mount Eden ratepayers will not be deceived by the fact that the city rates arc at present Ijd in the pound less than ours, but will tako the long view and think what the city rates are likely to be in a few years' time. J.R.

Sir, —I have to thank Mr. S. Gray for his courteous reference to my omission of loans due in 1937. I had not noted these earlier dates as they were not in consecutive order for payment.. These loans to which Mr. Gray calls attention are, he states, £5700, but omits to give the other amount, £30,700, total, £36,400. Fie slates, however, that " the amount available for repayment of the two loans would have been over £20,000 if the sinking funds bad been maintained, but now will, of course, be less, as the payment of sinking fund has not been made this year." This discloses the fact that under most favourable conditions these loans would be short of over £16.000 at due date and a further loan would have to be negotiated. The next small loan of £I6OO is due in 1940. This makes very clear that there can be little relief to residents of Mount Eden until further loans are due in 15 years' time. But there is also the question of £90.000 authorised, but not yet raised, for further drains in the borough. For many years the council will be heavily burdened to meet liabilities, and there is also the dealing with a demand from AuditorGeneral in 1930 balance-sheet that " Interest and sinking Sund payments have been charged to the £IOO.OOO drainage loan contrary to the express terms of the loan proposal and the amount is required to be refunded from general account." This amount has, I understand,' not been met by late or present council, but will have to be refunded from general account during the next three years. John W. Shackelfohd.