CORPORATION LOANS.

Otago Daily Times, Issue 19282, 20 September 1924, Page 11

CORPORATION LOANS.

HOUSING AND ELEOTRICAI* EXTENSIONS. •

LARGE SUM TO BE RAISED LOCALLY*

Important references to forthcoming rat# loans are contained in committee reports , to oome before the City Council •at its meeting neat Wednesday. ■ The Works Committee recommends that : the necessary Steps be taken to authorise the raising by way of special c*der of a, special loan 6f £25,000 to be Utilised for the purpose of purchasing land and erecting bouses thereon, such land and houses to bo sold either for cash or on the deferred • payment plan. Your committee further < begs to recommend that debentures to bo created for the loan to be taken up by the investment of the sum of £25,000 out of the amount standing to the credit of the insurance fund. As the matter is ; one which primarily concerns the Finance Committee, it has been referred to the ! Finance Committee in terms of the stand? ing orders for report as to the financial aspect of the proposals. The'committee, also desires to mention that it is going into the question of providing suitable housing accommodation for that section' Of the community which, as a rule, lives in one or two roojiis of in the class of dwelling which is usually ripe for removal, . Infer? maticn is now being gathered with the object of formulating a definite proposal for providing cheap living accommodation for this section of the community, and a> full report will be submitted to council at the earliest possible date. Offers have been received to sell land at (a) Parkside _ and (b) Tainui as sites for workers’ dwellings. After careful investigation, the offers have been declined. The Electric Power and Lighting Com- ' mitteo recommends that authority bo granted for the provision of a supplemental capital vote of £IO,OOO to cover the, host of extending the electric power and light 4 ing supply in the Taieri districts of WeckD side and Ailaaton. Guaranteed for business in the two areas mentioned have been secured to the extent of £ISCO per year for four years, but it is anticipated tMt the revenue to ■bo derived will exceed the guarantees considerably. The vote in the present year’s estimates did not provide for the extension of the system to Woodsida ■ and Allan ton —hence the need for a special vote. The matter has been referred .to tlie Finance Committee for report on the financial aspect in terms of tie standing , orders. Now that the Bill providing for the increased storage at Waipori has been practically settled and is likely td becomri law at any time; it becomes necessary to make the necessary provisions for the new , loan capital that is called for. Particular* , of the department’s requirements have been forwarded to the Finance Committee for report on the financial aspect in terms of the standing orders The Finance Committee, in Its report, makes the following reference to these mate ters' “Tour committee begs to report on too financial bearing of the under-mentioned - references from the Works Committee and Trading Committee respectively: (a) Front the Works Committee for the raising of a special loan of £25,000 for housing, the amount to be provided by the investment of insurance and renewal funds. Tour, committee begs to recommend that the proposal be approved on the condition that the • authorisation Is made in due legal form, . and that interest-bearing debentures ,bd created, which Will be held as security for the funds so invested, (b) From the Trridirig Committee (B.P. and L. SectiOn) for the provision of a suplemental vote of £IO,OOO to cover the cost of electrical extensions in the Tiileri District. Your committee begs to recommend that the vote ba approved. The expenditure will be a charge against the new WaipOri loan, to , which reference is made in the next slifri ceeding paragraph. The Finance Committee further recbifiJ mends that the accessary steps be taken for the passing of Special orders authorise ing the raising of the undar-inentionea . loans:—(a) For Waipori extensions* £200,000; (b) for renewing 6 per tent water works loans falling due, totalling £117,000* less accrued sinking funds £44,400, £73,000} (c) renewing £12,325 municipal loan falling■ due, less accrued sinking fund £32s, £12,0Q0; (d) loans for housing, £25,090, plris £SOOO to cover cost of seven dwellings on Mill Reserve, £30,000; or a total of £315,000. Of the above amount the council chit finance £30,000 for housing out of thtt insurance and renewal funds, leaving ft, balance of £285,000, which is recommended be raised on the local market on debdtte tnres having a currency of 15 years arid bearing interest at the rate of 54 per cent, per annum. Of the £285,000 the requirements for the present year will be at learit' £185,000. It is desired to add that, apart from the above new issues, the requifements still to be met for the current year’s capital outlay include the Works Departs ment’s expenditure out of the works loan of £200,000, the amount that will btj needed by the Tramways Department out oil tha authorised loan of £IOO,OOO, together Wztu the Drainage Board's requirements out of the board’s loan of £IOO,OOO authorised by legislation last year. There is also th« proposed Lake Logan and highway loail which, if approved by the ratepayers. Will need to be provided for. The cqmmittea begs to formally recommend that the above proposals for the authorisation of new IrifiQ issues be approved. Drafts of the necessary special orders are to be submitted to a special meeting of the council to be held immediately Of ter the ordinary meeting.