THE LOAM PROPOSALS.

Gisborne Times, Volume XXVII, Issue 2680, 9 December 1909, Page 2

THE LOAM PROPOSALS.

THE MAYOR’S ESTIMATE

His Worship the Mayor has prepared the following general statement of the position in connection wn h me municipal loan proposals. Tn the case of the street loan the amounts are specifically allocated for each street. The recreation loan is also specifically allocated. £175,000 LOAN. £ Sewerage, including connections to boundary ... 60,500 Loan for temporary advances house services ... 10,000 Electric light and power 16,142 Bridge across Waimata river ... 4,950 Tramways . 25,000 Street formation and metalling. including machinery £4750 ... 35,000 Recreation grounds, etc. ... ... 6,500 Waterworks reservoir and reticulation ■ • •• 11,000 First year’s interest out of loan 5,908 £175,000 By raising all the above amounts in one loan the money can be obtained at 3> per cent, instead of at 44 per cent, which effects a saving of £1750 a year. This sum -would pay. interest and shaking fund on a sum equal to £38,750; this would practically give the Borough the following items for nothing and £2-300 to spare, viz. nr Tramwavs ••• ... ... 25,000 Bridge ; 4,950Recreation grounds, etc. . . 6,500 Total ... ... ...£36,450 As the law will not allow separate votes to be given on each item and then to amalgamate the items .passed after the poll, the Council lias no alternative cut to place the proposals before the ‘.ale; v'-ers in.one issue; at tlie s «Vme Hi me tern 3s distinct suicl cannot be or diverted by The present- or . other Council, lho items ir-;.vr v> spent upon the works or o’hb > s cihed in the proposals. Wh: %'*«•>' ; dan money is being expended riie- first year there will be no interest required, as it will be paid out of loan as. provided, and all the money required outside of general administration ivill be £4150 for (maintenance as set out by the Overseer as follows: OVERSEER’S "ESTIMATE. For the first five year s I estimate the following will be required for maintaining the streets of the borough: £ Maintenance of bridges ... 350 Street watering 300 Street lamps ... 500 Tarring footpaths oUU Shingle for patching ... 1000 General maintenance ... - ' - ;- .-£4150 - For the next five years I consider you should increase the cost of maintenance by 20 per cent., namely' 6th year it would he £4980; 7th year it would be £5976; Bth year it would be £7171; 9th year £8605. . This you could obtain with & rate ox 94d, in lieu of'the 2s, as allowed for hy the Town Clerk, v Of course this is not taking into account the Council s overdraft, which it may be thought advisable to gradually extinguish, and this can be accomplished by increasing the 9£d rate.. , ~ Should the Council adhere to the estimates, a 9|ckrate in ] ieu e could be maintained with a slight increase as shown by- the following figures:

. On the oth«r hand, should the,Coun-, :ci! decide to ; adhere td 'the ’•of ;2s; they would (.not considering the; overdraft, which at present stands at. £6000) have a surplus amounting to £25,830. In arrivng at this estimate everything has been put in its worst aspect, and on the assumption that it will take five years to expend the money, whereas all the proposals should be completed within say, three years; thus the trams and' electric lighting -would be brought into profit within three .years, instead of five. , By adopting the whole’ of the loan proposals 'the following saving' could be effected: Saving- in street lighting by adoption of electric light (under the present system 73 lamps cost £SOO per k annum, under the proposed scheme 100 electric lamps will cost £225) £275 Saving cost of pumping sewage by adoption of electric light proposals, which amount the ratepayers Mould have to pay if sewerage Mere adopted without electric light ... ■•• 662 Saving of interest on electric light loan, as per estimate, on £16,142 if taken out cf profits instead of rates ••• • ••• ■ ■Saving in cost of interest on loan of £25,000 for tramways if same is not taken out of rates, _ but out of- profits ... ... 1207 Estimated profit on trams oyer and above interest and working expenses ‘ .A 923 Saving in interest on the £IO,OOO loan, which is repaid in -.five years by those directly benefited 400 If County Council .pays interest on half cost .of bridge there is a saving of ;• , ••• •••. ••• 400. Estimated saving in the sanitary service after sewerage and the ' ■ water-carriage .system is adopted in lieu of sealed-pan svstem... 1060 Interest on u-atenvorks loan of £IO,OOO couid be- paid out of the u-atenvorks account as extra reticulation, and the reservoir would ensure a much greater consumption of u ater and consequently increased revenue ... 440 Total ..■•'•• ••• ...£5714 I'he Town Clerk’s figures are prepared as though interest and sinking fund for tramways and electric light are paid for out of rates, but if the engineer’s estimates are correct, these can he paid out of earnings from the schemes, and lielice the foregoing items can be brought to credit. In addition the burgesses would- indirectly get a reduction in the price of gas, assuming that gas is sold on the same basis as the borough would sell the electric light. ■ Gas u-ould then cost 4s per 1000 ft, instead of 7s Id as charged at present upon punctual payment, 'being a saving of 3s Id per 1000 ft; and there would still be another direct pecuniary benefit which the burgesses would derive through the reservoir being constructed and the watenvorks being brought to a proficient state —a large reduction on insurance rates must then be alloM'ed by the insurance companies. -V Upon the question of loss of interest by taking up the loan in one sum, no loss should be occasioned on this head, as any money not immediately required M’ould be placed on fixed deposit. The banks, at present are paying 4 pci- cent, for two year deposits, aiuT* 3! per cent, for twelve months. Jn addition the ratepayers would save the interest quoted previously, amounting to £1750 per annum, also the amount of £25,830 m saving of rates and miscellaneous items, -which for a nine-year period u-ould total as follows: £ Saving in interest for 9 years * at £1750 per annum 15,750 Saving in rates on present 2s basis 25,830 Miscellaneous for. say 6 years only, allowing 3 years for completion of work,- at £5714 per annum 34,-84 Total ... a* *6,864 This shou-s an actual saying 'to the ratepayers of £75,864 within the nextnine years besides having the benefits of all the u-orks. The question a is: Can any progressive ratepayer vote against these proposals?W. DOUGLAS LYSNAR, Mayor of the Borough of Gisborne. Mavor’s office, Ge, Dec. 8,1909.

f « j 1 ] 1 [— 1 [— 1 [ 1 ]— > [ - 1 » ■ . cococococococococo Year ending c H-“ H-* 1— ‘ I-* 1— ‘ H- > H-* 1— 1 »-■ r,-, , n 1° • oo o 05 Crc »£>■ os tD ►-> o olst March. omcoo,^ t&cfax Amount of Rata t-***-**-. m the £. M *—•!—» V 4*. fci) tr*.CD "105 OX “S^oo^ -.Total Amount. cn CD Ifx CO OS XJ -4 £2 Interest on Loan 8£S?oSS^~| at 3i ? er cent - . oo oooo | | ‘i | I xj Sinking Fund at 888 1 1 1 1 g i per cent. Overseer’s Estimate Hffloooooo Maintenance. iScocoSooelosx Total requirements. ■*• CDOlOOOlOOlO