OAMARU LOAN PROPOSALS

Otago Daily Times, Issue 27012, 22 February 1949, Page 6

OAMARU LOAN PROPOSALS

Sir,—May I place before ratepayers of Oamaru some reasons why none should vote against the loan proposals brought forward by councillors, who are all ratepayers? There has been some propaganda about rate increases, and individual ratepayers are asking what they will amount to: If the (security) rates for the Fluming Reconstruction and BuUding Reconstruction Loans are imposed, it wm mean to the average residential ratepayers Id a week or 5s a .year. So far as the two main items m the Machinery Loan are concerned, the Works Committee has given an assurance to the council that its allocation for town maintenance will remain the same as this year, so the (security) rate on these two items can be disregarded. But there are further reasons in my oninion why none of the (security) rates on all three loans should be imposed. The council struck the present rate on a valuation of £772,230 unimproved value. On January 27, 1949. this: has: been increased to £780,890. By March 31. 1949, it will be considerably higher. On the higher valuation at the same rate there will be an increased revenue of approximately £SOO. This year the council budgeted for the ICing’s visit, and £SOO was paid out for a valuation roll. This roll lasts for five years. These non-re-curring items and the increased valuation will more than cover the (security) rate on all three loans. , , . If all the loan proposals are turned down the council would have to debate its new course of action. If it were possible to carry out all the work of reconstruction and purchase all the machinery in one year, it would mean a cost of £5 to every ratepayer with an average valuation of say £240. If spread over two years. £2 10s a year, and if over five years, £1 a year. The previous and the present councils by almost unanimous vote after lengthy consideration and study, have declared that the proposals placed before the ratepayers on Thursday are essential, and if rejected the council will be faced with no other alternative but to do the work and buy the plant within reasonable time out of revenue, which will mean increased rates. The loan proposals are designed to obviate this.—l Bm, etc., D. S. Bain, Chairman of Works Committee.