WATERWORKS LOAN

Timaru Herald, Volume CXLVIII, Issue 21553, 16 January 1940, Page 4

WATERWORKS LOAN

Schedule of Repayments Alteration Made By Board Reconsideration Requested In a report presented to the Timaru Borough Council last night, the Town Clerk <Mr E. A. Killick) stated that the Local Government Loans Board had approved the Timaru Borough Waterworks Renewal Loan, £55,400, on a 12 years term from June 30, 1940, at 41 per cent interest, but with annual repayments on a different basis from those recommended by the Council. Ih the following table the first column shows the amounts to be redeemed as decided by the Council, and the second column the amounts as decided by the Loans Board:—

Mr Killick mentioned that the Board had altered thfe Council’s proposals In regard to the 10 per cent additional required on the Timaru Airport Loan in a somewhat similar manner. The 10 per cent additional on the Water Supply Loan had not yet been dealt with pending information in more detailed form. Effect of Alterations “The effect of the Loan Board’s alterations of the Council’s proposals,” continued Mr Killick, “shows that in 1941-42 there will be a burden on the rates of £llOO greater than proposed by us, and that this will continue more or less until 1947-48. We had endeavoured to adjust our burden to avoid an undue rise during the next year or two, which represent the peak period, although we were unable to avoid in 1941-42 an increase of £lOOO on our present loan burden. This increase will now be £2OOO or over Id increase in the rates.” After reviewing the position Mr Killick recommended that the Loans Board be asked to reconsider its decision and to approve the Council's original proposal in regard to the Waterworks Loan. Mr Killick mentioned that the alterations to the Airport Loan proposals were not sufficiently important to worry about. Attitude of Board “You will note that the repayment of the Waterworks Renewal Loan has been on a somewhat different basis to that applied by the Council,” wrote Mr H. J. Miller, secretary, in conveying the Loans Board’s decision, “but in this respect the repayments to be made in the future will show a reduction on the present annual charges, and on this account the Board considered that the Council should have no great difficulty in repaying the loan on this basis. The repayments in the earlier years have been kept as low as possible in order to relieve the Council as much as possible until 1947 when the annual charges on the remainder of the Council’s loans show a considerable drop. The Hon. Minister of Finance is being notified under Section 10 of the Local Government Loans Board Act, 1926, and. when issued, an extract from the Gazette containing a copy of the consenting Order in Council will be forwarded by the Treasury.” Cr. H. J. Mathers: The Council will have to find an additional £lOOO per annum for six years. We have endeavoured to stabilise the rates as they are, and the decision of the Loans Board will mean that we will either have to raise the rate, or else limit bur expenditure by £lOOO. We were prepared to make annual repayments of £5OO for six years, but the Board evidently requires £l5OO. Cr. Satterthwaite then moved, and Cr. P. B. Foote seconded “That the Town Clerk (Mr E. A. Killick), be authorised to visit Wellington, if necessary, regarding the Waterworks Renewal Loan proposals.” The Mayor (Mr W. G. Tweedy): Frankly I can see no reason why the Loans Board has found it necessary to vary our loan redemption proposals. The Board has not altered the date of ultimate repayment, but if given effect to, its proposals will have a serious effect on the Borough finances. The Council agreed to urge the Loans’ Board to reconsider its decision and to adopt the schedule of repayments as suggested by the Council and the motion was carried.

1941-42 .... 500 1 500 1942-43 .... 500 1.500 1943-44 .... 600 1 600 1944-45 .... 700 1 700 1945-46 .... 700 1.700 1946-47 .... 900 1,900 1947-48 .... 3.000 3 000 1948-49 .... 7,500 7,500 1949-50 .... 10,000 8,500 1950-51 .... 10,000 8.500 1951-52 .... 10.500 9.000 1952-53 10,500 9,000