CITY LOAN CONVERSION.

Otago Daily Times, Issue 10620, 16 March 1896, Page 3

CITY LOAN CONVERSION.

PROPOSAL TO ABANDON THE

SCHEME,

The Finance Committee of the City Council will tabmit the following report to ft Special meeting on Wednesday evening :—

Your committee beg to report that the question df the conversion of the loans submitted to it has been Very fully considered ; that as miich information as possible concerning theprobabllitieJ of bondholders being induced to convert ha? been obtainud ; that the proposals or suggestions by tho bank, eiving the amount of premiums their representatives in London- considered necessary to induce the bondholders to agree to conversions have becri further studied, and the results to the corporation have been parofully calculated. Your committee have also had the actuarial values carefully calculated by a thoroughly conipiitent accountant, and the results tabulated, and find it would not, in the opinion of your committee, be advantageous to; attempt cdaversion of the lohhi unless the bonds could be converted at or near par. Your committeo therefore resolved to recommend ;—l, That the proposal to convert any of the loans be abandoned. 2. That transfers from the credit balanced of the water and gtis departments be made as formerly for tho eusuing year to the municipal department &b occasion requires. 3. And that your committee be instructed to tako steps to obtain authority during the approaching session of Parliament to borrow jESO.OOO for 12 years at 4 per cent, to pay off the overdraft . ."

The following tnemorandum prepared cm the 2nd March is attached. We have left out the abattoir load as it does hot eater into the Calculation t—

!■■■-, SuMMAßifi : (Shillinge and pence omittedi) Munici' , , pal Water, Gas. Total. ''£' £ £ £ Amount . '•.»■• 301,750 203,300 100 000 - 6ll,0(K) Total aiitiUal . . charges ■';.. M,f134 1?,23l 6,000 - Sg.ite New amottnt... 918,930 247,283 - 115,820 - 717,5: ft Total annual . charges ... 15,701 11,127 5,150— 3228S Increase , of .debt ..,'47,1fe0 43,983 16,320 —106,483 Total paving of interist and sitking fund-- ... 4,832 1,103 810 - 6,H6

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