MOSGIEL AFFAIRS
The Loan Proposal EXPLANATION OF TERMS Certain misconceptions may have been created in the minds of Mosgiel ratepayers through correspondence appearing in the press on the eve of polling on the loan proposal, it was represented to the Daily Times yesterday. We are asked to print the following statement:— “The £65,000 loan will positively be repaid within its stipulated term of 25 years. Section 6 (3) of the Local Government Loans Board Act, 1920, reads:— . 11*911111/ The board shall not sanction any application for authority to raise a loan unless provision to its satisfaction is made ,by the local authority for repayment of the loan within such oeriod as the board deems reasonable, having regard to the probable duration and continuing of the works for the purposes of which the loan moneys are proposed to be expended. “ The following are two extracts from the notification of sanction' to loan received' by the Borough Council from the Local Government Loans Board:— 1. The term for which the said loan or any part thereof may be borrowed shall be twenty-five (25) years. . . . 3. The said loan or any part thereof, together with interest thereon, shall be repaid by equal aggregate annual or half-yearly instalments extending over the term as determined in 1 above. “The moneys will be borrowed over a term of several years as the work proceeds, but from the time when the full amount has been borrowed until repayment the same total sum will be required in each year to meet the standing charges on this loan, and no revaluation of the bojough spn alter this position. “ The estimated loan expenditure was finally completed by the borough engineer about a year ago. This was checked and rechecked by both the local office and the head office of the Ministry of Works before the loan was approved by'the Loans Board. “The position regarding the likely increase in rates because of the loan has already been stated in a circular which was sent to all ratepayers.”
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Bibliographic details
Otago Daily Times, Issue 27499, 20 September 1950, Page 8
Word Count
336MOSGIEL AFFAIRS Otago Daily Times, Issue 27499, 20 September 1950, Page 8
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