CORPORATION FINANCE

Otago Daily Times, Issue 18347, 10 September 1921, Page 4

CORPORATION FINANCE

MATURING LOANS. INCREASED INTEREST CHARGES. A statement which has been prepared by the town dork (Mr ti. A. Lowin) sets ■nit in concise form the position of the City Corporation with respect to the loans maturing on March 1, 1922, and the increased interest charges which will have to be met for the renewal money. The total amount of the loans is shown to be £516,200, upon which the interest charge is £22,200. From this sum, however, £39,900, accrued sinking fund, has to be deducted, leaving a total of £426,300, which it is required to find. The indebtedness of the various departments is as follows, the sinking fund in each case being shown in parentheses. —Tramways, £300,000 (£71,000); Electric Power and Lighting, £199,200 (£15,000); General— Mornington, £BOOO (£600); and NorthEast Valley, a £9OOO (£3loo'. The renewal loan of £426,300 is being raised by two loans of £89,300 and £537,000 respectively. The interest charge at 5i per cent, on the first-named amount will be £4911 10s, and on the second, at 6 per cent., £20,220. The following table shows the increased interest charges which will have to be borne by the various departments:— Present Now charge, charge. Inc. Tramways ... £12,639 £13,293 £504 E.P. and L. ... 8,330 11,052 2,221 Geileral 630 786 106 Totals ... £22,200 £25,131 £2,931