ROADING COSTS

Otago Daily Times, Issue 26176, 12 June 1946, Page 6

ROADING COSTS

RECONSTRUCTION AND PAVING ALBERT STREET PROJECT Details of the cost of street reconstruction on trolley bus routes, the paving of tram track areas, and the reconstruction and extension of Albert street are given in a further section of the Finance Committee's report covering works, the liability for which would fall on the Municipal Department. The schedule -submitted to the committee was as follows: £ Paving tram track areas .. 45,129 Street reconstruction on trolley bus routes 97,100 Albert street reconstruction and extension 86,000 Total £228,229 It is proposed to deal with this schedule in two groups—the Albert street proposals, costing £86,000, and the paving of track areas and street reconstruction, costing £142,229.

APPROVED IN PRINCIPLE Dealing first with Albert street, the report states that this proposal has already been approved in principle by council. The city treasurer reports, that the annual charges on a loan of £86,000 for this work will amount to £5912 10s. The sum is made up of interest £2795, calculated at 3J per cent on a loan term of 20 years, and sinking fund at £3 12s 6d per cent, per annum. As this proposed work is on a continuation of a main highway it is possible to utilise the proceeds of petrol tax to cover the loan charges. It is proposed, therefore, that such course be adopted. Receipts from petrol tax are at present approximately £IO,OOO per annum and there is at present a substantial credit in the fund. It would be necessary to , pledge a special rate of Id in the £ to provide security for the interest and repayment of the loan. As outlined, this rate would not be collected. REDUCTION IN EXPENDITURE The second group comprises a loan expenditure totalling £142,200, covering the cost of paving tram track areas and street * reconstruction on trolley bus routes. The annual charges on this sum for interest and sinking fund would amount to £9776. It would not be possible to find this sum out of the General Account without assistance from a special rate, and the committee is of the opinion that the last mentioned course should be avoided. The alternative is to reduce the proposed expenditure and the committee considers that that course should be followed. The outlay would be spread over a number of years and it should be .possible to provide fosr necessary street construction as it arises within the limits of a smaller loan provision, plus normal outlay out of revenue. It is recommended, therefore, that the loan proposal under this heading be reduced to £72,000, of which £45,129 would cover paving of tram track areas and £26,871 street reconstruction on trolley bus routes. The annual charges on £72,000 would amount to £4940. can be found out of the General Account by appropriating the heavy traffic fees on trolley buses, which are estimated to produce £SOOO per annum.