The gross revenue of the entire estate would therefore be:--
Rate-rent from agricultural estate (_see_ p. 36), £9,750
" 5,500 home building lots at £6 per lot, 33,000
" from business premises 10,625 persons employed at an average of £2 a head, 21,250 ------- £64,000
Or £2 per head of population for rates and rent.
This sum would be available as follows:--
For landlord's rent or interest on purchase money £240,000 at 4 per cent., £9,600
For such purposes as are elsewhere defrayed out of rates, 50,000 ------- £64,000
It is now important to inquire whether £50,000 will suffice for the municipal needs of Garden City.
[8] The question of the form of Leases to be granted is one which is being carefully considered by the Land Tenure Section of the Garden City Association.
THE REVENUE OF GARDEN CITY--GENERAL OBSERVATIONS ON ITS EXPENDITURE.
Before entering upon the question which presented itself at the conclusion of the last chapter--that of endeavouring to ascertain whether the estimated net available income of Garden City (£50,000 per annum) would be sufficient for its municipal needs, I will very shortly state how it is proposed to raise the money required for commencing operations. The money would be borrowed on "B" debentures,[9] and would be secured by a charge upon the "rate-rent," subject, of course, to the payment of interest and sinking fund in respect of the "A" debentures on which the purchase money of the estate is raised. It is, perhaps, superfluous to remark that, though in the case of the land purchase it might be requisite to raise the whole, or at least some very considerable part of the purchase money before possession would be given of the estate, or operations upon it commenced, yet in regard to public works to be carried out upon the estate, the case is quite different, and it would be by no means necessary or advisable to defer the commencement of operations until the whole sum which might be ultimately required should be raised. Probably no town was ever built on such onerous conditions as would be involved in the raising at the outset of such a very considerable sum as would defray the cost of all its public works; and though the circumstances under which Garden City is to be built may be unique, there is, as will by and by be seen, not only no need for making an exception of the town in respect of initial capital, but quite exceptional reasons will become more and more apparent which make the overlaying of the enterprise with superabundant capital altogether unnecessary, and therefore inexpedient; although, of course, there must be a sufficient sum to enable all real economies to be readily effected.