LOAN PROPOSAL

Waikato Times, Volume 118, Issue 19639, 27 July 1935, Page 9

LOAN PROPOSAL

KERBLNG & CHANNELLING.

SANCTION TO BE SOUGHT. ■ , ) RATEPAYERS TO DECIDE. Following the decision of the Hamilton Borough Counoil yesterday afternoon the Council Is to apply to the local Government Loans Board for sanction to the borrowing of £26,000 for kerblng and channelling In the borough, the money to be raised In sums not exoeedlng £6OOO per annum during the next throe years and thereafter at a rate not exoeedlng £3OOO per annum.

In moving *the motion along 'these lines, the Mayor (Mr J. R. Fow) said that in the first case he wished to stress the point that In asking the Loans Board authority to place before the public a proposal to borrow £25,000 It was not intended to raise that sum In one or two years. “The sum of £25,000 is mentioned,’ he said, “Only because we wish to avoid the necessity for a further loan poll In a 'few years time. The voting paper will contain a clause definitely limiting the expenditure in the manner set out in the motion and if the proposal is approved at the poll it is expected that the authority granted toy the Governor-General 'for the actual raising of the money will toe couched in such terms that periodically after 2i years until the whole amount has been expended the Council will have to review the works remaining to toe undertaken and obtain further authorising orders from the Treasury. This should have the effect of preventing any work being undertaken before It is Justified and will prevent any possibility of a sudden considerable increase in the rate. ' “The main object in bringing forward the proposal at the present jupoture,” (he continued, “is to enable the people to determine whether they prefer the Council to carry on this work by way of loan or from the profits of th» electricity department for as far as funds will permit the Council is determined that it will continue kerblng and do what it can to keep men off No. '5 relief works.

Application for Subsidy. “To this end application has been made to the Unemployment Board for a subsidy on an estimated expenditure, of £5500 (£SOOO from loan and £SOO from revenues) for the year ending August i, 1936, and the Council may -reasonably anticipate if it incurs this expense to receive a subsidy for this particular year of over £9OO from the Board. “The Unemployment 'Board has also been asked to undertake to consider further applications for subsidies on subsequent years expenditure on the basis then being arranged for works of like nature. : , •“The interest and sinking fund charges on £SOO 'are approximately £302 per annum on an instalment loan over 25 years. “It Is proposed, if the loan poll is carried,” 'he concluded, “to ask the •Loans Board for an authority under which we can arrange to raise the whole of the money necessary for the first three years’ work by instalments as required at the present low rate of ’lnterest. The opportunities to-day are as favourable as we are likely to get for the raising of loan money and if work is to toe financed in this manner now is the time to proceed.” Cr W. W. Dillicar protested against the raising of money at the present time. The schedule bearing the names of streets it was proposed td kerb and channel contained many of which he ‘had never heard, although he had lived in the town all his life. Personally he did not think the loan would he carried and considered it would he a waste of money to take a poll on the question. Cr. A. M. Bisloy intimated that he would support the motion solely to provide ratepayers with the opportunity of saying for themselves how they wanted the work paid for out ot revenue or loan moneys. He was of opinion that the work should be done out of revenue which the Counoil was capable of obtaining from Its trading departments. Cr A. J. Denz concurred 'in trie principal of allowing the ratepayers to decide for themselves how they wanted the work done. He was opposed to borrowing money for the work which could well be carried out without the raising of a loan on which interest had to toe paid. They could place £3OOO aside out of revenue eaoh year, obviate Interest charges, and still get the Government subsidy. - Crs H. D. Caro, W. Curteis, H. M. Hammond and C. Lafferty also spoke briefly in support of the question being placed before the ratepayers for their decision. , „ t .. In answer to Cr Lafferty, the borough engineer (Mr R. Worley) said that the .approximate saving in cleaning out water-ta'bics woulcu be £yOU yearly. It was then moved by 'the Mayor, and seconded toy Cr J. E. Tidd, that the Council apply to the local Government Loans Board for its sanction to the borrowing of £25,000 for the purposes of constructing concrete kerbing and channelling, tile money to be raised in sums not exceeding £SOOO per annum during the next three years, and thereafter at a rate not exceeding £3OOO per annum, the security to be a special rate of i d in the pound on the rateable unimproved value.” The motion was -carried, Cr Dillicar alone dissenting.

Stroets To Be Done. The following are the streets that arc proposed to be attended to under the- loan proposal (estimated to be renuired to be done within foui years) : _ ~ Hamilton West Area. —Grantham Street. Hillsboro Terrace, Angclsea Street (end). Manning Street, Hammond Street, Fow Street, Bryce Street, Selkirk SI reel, Ilinemoa Street, V talon Street,, Clifton Road. Hnrdley Street, Gwynne Street, Dyer Street., r.dgecunvbc Street (part). Charlrmont Street. Willoughby Street. Mill Street, Ulster Street, Abbotsford Street, Richmond Street, (part). Hamilton East.—Cook Street, Wel- . lificton Street, Albert Street, Naylor Street, (part), Firth Street (part), Nixon Street (part), Grey Street (part), Wilson Street. Poach Grove i Road (to Wilson Street), Rcale Street, Graham Street (part), Brookfield <slmot (Grey Street to Graham Street), Galloway Street (Naylor to Clyde Street). Coates Street. Clnurielnnds. —Opoia Road, Riro Street, Myrtle Street, Te Aroha l (.Continued in previous column.)