Opera House loan on agenda

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The Waitaki District Council is to consider increasing rate funding to reduce interest accumulating on a loan taken out to pay for upgrading the Oamaru Opera House.

In the 2013/14 annual plan, the council committed $80,000 of rate funding to reduce the impact of interest compounding on the loan.

In a report to the council, financial accountant Ian Wells said even with this funding, the principal outstanding on the loan would continue to increase by more than $80,000 annually.

He has recommended to the council that the level of rate funding be increased to $167,500 and that it be included in the draft 2014/15 annual plan.

Council will consider his recommendation at its meeting tomorrow.

As of December 31, the balance of the Opera House loan was $3.93 million. It is projected to increase to $3.9m by June 30.

By CHRIS TOBIN