MOSGIEL BOROUGH COUNCIL

Otago Daily Times, Issue 22100, 2 November 1933, Page 12

MOSGIEL BOROUGH COUNCIL

MONTHLY MEETING The monthly meeting of the Mosgiel Borough Council, was held last night. Mr A. F. Queleh (Mayor) and Ors A. Stevens, E. J. Wilson,' J. F. Frew, R. Smeaton, W. P. Hartstonge, and G. Smith were- present. p ! ' . - ; ? CORRESPONDENCE. The Labour Day Picnic Committee wrote thanking the council for assistance given on Labour Day at the picnic on the Mosgiel Recreation Ground—Received. The secretary of the Municipal Association of New Zealand notified that the annual conference would be held in Wellington early in 1934. —It was decided that a sub-committee should peruse the remits submitted, and if necessary a special meeting of the General Committee. be called. The Mosgiel Citizens’ Association pointed out the need for regulating motor traffic at the intersection of Factory and Gordon roads and also drew attention to the need for preventing the erection of any buildings on the present street line which would block the view. A further request was that the upper end of Argyle street and the continuation between Bruce and Burns streets be attended to.—The matter was referred to the Works Committee with power to act. Some residents in Duke street applied for blinding for metal on the street butface. —The foreman estimated that o.) yards of gravel would be required, and the council decided to carry out the work. FINANCE COMMITTEE. The Finance Committee reported as follows; — . ... The chairman submitted a lengthy report on loan conversion to a special meeting of the committee called to consider the iiiatter. The report recommended (inter alia) that all. borough loans bo converted into one loan of £27,500, the date of maturity to be August 1, 1944, and the conversion date February 1, 1934. On maturity the loan to be renewed or re-raised for a further period of 12 or 14 years, by which time the accumulated sinking funds would be sufficient to repay the whole loan. In fixing the term as stated, it was felt that due regard would lie shown to the right of debenture holders, and that the council would not be taking an unfair advantage of the legislation dealing with the The legislation provides that the reduction in interest on conversion must not be in excess of 20 per cent. With the exception of the Town Hall loan of £3OOO, ail the borough loans bear interest at 5J per cent., so that the proposed rate of interest on conversion would amount to 3s per centum per annum more than the '2O per cent. This position must be met by allowing a premium on conversion of a like amount for the unexpired perjod of the loan concerned. If the conversion date is February 1, 1934, the premiums ■payable would amount approximately to £92. It was suggested that this amount be paid out of the accumulated sinking funds, which at March 1, 193.>, totalled £2447 17s 2d, provided that the Public Trustee (as sinking fund commissioner) agreed. •. . The report suggested that the sinking fund on the converted loan be 2 per cent, per annum, making the total annual charges on the loan per cent—being interest 4J per cent, and sinking fund 2 per cent. This sinking fund would provide sufficient to repay the whole loan in approximately 24 years and would greatly increase the security of the debenture holders. • ' ; ' , The annual charges on the whole amount of the borough loans before the interest reduction regulations came into force amounted to £IBO7 10s, being £1482 10s for interest and £325 for sinking fund. After conversion on the above basis these charges would be: Interest £llOB 15s, sinking fund £550; a total oi £l7lß- 15s. The net annual saving to

the council would therefore be £BB 15s only. Though the immediate benefit to be derived from conversion ig small, posterity would reap the advantages which would accrue from the.proposed contribution to the sinking fund—advantages which would have benefited present ratepayers had adequate provision been made for sinking fundg in years gone by. The legislation provides that on the loan conversion scheme being approved and finalised, it may then be placed before the debenture holders for their assent or dissent. The interest payable in respect of any debentures, the holders of which dissent, to be reduced by 33 1-3 per cent, below the original rate during the balance of the currency of the particular loan. , , After considering the chairman’s;, scheme very carefully, the committee recommends its adoption, but subject to the rate of sinking fund contributions being reduced from 2 per cent, to li per cent., it being thought that as great a benefit as possible should be obtained for present ratepayers. The committee has considered and received the town clerk’s report comparing receipts and expenditure for the first six months of the financial year with the estimates. The committee recommends that accounts for extraordinary water supplies be rendered quarterly in future, instead of half-yearly. A report by the borough solicitor on a number of cases of outstanding rates has been before the committee, and suitable instructions have been given as to the collection of the amounts owing. The committee has decided to support the Waitaki County Council in any steps which might be taken to obtain a reduction in the charge which the Dunedin City Council proposes to make for the apportionment of heavy traffic fees collected in the district. The committee has examined accounts totalling £4ll 0s 2d, and now recommends same for payment. The report was adopted. After the Finance Committee’s report had been adopted C. Hartstonge moved—- " That application be made to the Local Government Loans Board for reduction in the council’s loan conversions from 2 per cent, to 1} per cent.”—This was carried. WORKS COMMITTEE. The Works Committee reported as folThe following work has been carried out during the month:—Septic tanks: The receiving tanks were deshidged and cleaned out, and settling tanka scoured out during a fresh in the stream. Water supply: Dead ends of mains were run off during the month, and all air and scour valves on the pipe line wore attended to. The cleaning and relaying of the pipe line from the concrete ford is progressing satisfactorily, and should be completed in three weeks’ time. One water service was put in for a resident in Church street. The pump and motor were thoroughly overhauled and cleaned, and new coupling fitted. Maintenance; A level crossing was put down for a resident on Factory road. Gordon and Gladstone roads were surfaced. Reserves: The fences in the Recreation Ground were repaired, depressions in ground were filled in, and protection erected round newly-planted ti-es. The fence in front of park was painted, and the concrete posts at the entrance to the Recreation Ground were whitewashed. The footpath in the park was sealed. No. 5 scheme men: Men under No. 5 scheme were employed on the pipe line, grubbing and cleaning water tables, surfacing roads, and working in Recreation Ground. The committee has received a report from the chairman in reference to u conference convened by the Otago Harbour Board to discuss conditions of employment and wages of local body labourers. The conference recommended that wages be stabilised at existing rates, and that the 10 per cent, cut be restored as soon ns practicable. The tender of Mr R. Ruthven for delivery of 500 yards, more or less, of Silverstream gravel to the borough dump has been accepted by the committee. The attention of the committee having been drawn to the conijjfion of Gladstone road ’ between the railway crossing and the station, it has been decided that as soon as gravel k

available for the purpose this road be' maae up where required. The report was adopted. Cr Frew mentioned the need for attention to the surface of Gordon road. When the work on the pipe line had been finished the matter would be taken in hand. The Mayor referred to the parking of cars on the streets, and the Works Committee was asked to report. GENERAL COMMITTEE. The General Committee reported as follows: —The reply to a letter sent by the council asking for an explanation why a building had been altered without a | permit having been obtained for the work, j was before the committee. Concern was ! expressed concerning this, and other ■ similar breaches of the by-laws, and the committee decided that a very serious view would be taken should any future : breaches of the building by-laws come j under its notice. The report was adopted. The council went into committee to consider outstanding rates, overdue accounts for rentals, and the sanitary contract.