RATES REDUCED.

Auckland Star, Volume LXII, Issue 149, 26 June 1931, Page 5

RATES REDUCED.

DECISION OF COUNCIL.

HALF-PENNY IN THE POUND.

MAYOR'S LUCIB REPORT. PROVISION FOR EXTRA ARREARS. The decision to reduce the total rates in Auckland by id in the £1, for 1931-32, was made at a special meeting of the City Council last evening, when the Mayor, Mr. Geo. W. Hutchison, presented the estimates and a schedule of the proposed rates. Mr. T. Bloodworth moved an amendment that the proposed general rate be increased by i§d, and that the proceeds, £5723, be used to provide employment. The amendment was lost, only three councillors voting for it. Rates for the current year will be as follows, last year's rates being shown opposite:—

The reduction of Jd in the hospital rate is due to a decrease in levy of £9256, while an increase of £2098 in tho Drainage Board levy necessitated an increase of Id in the drainage rate. The additional id in the sanitation account is required to reduce the opening debit of £3648 on that account. The savings in wages and economies introduced in compiling the estimates enables a reduction in the general rate to be made of 2fd, which reduces the total rates from 4/ to 3/11$. Councillors described the Mayor's report as "very lucid," and congratulated him warmly upon it. A very complete statement was presented. Unpaid Rates. "The difficulty experienced by many ratepayers is shown by the fact that over 1500 are paying their rates by instalments," said the Mayor. "In assessing the receipts from rates for the current year, it haa been thought prudent to allow, as a reserve for unpaid rates, 10 per cent of the ratable income, as against 7 per cent last year. "A . suggestion that a discount be allowed for prompt payment was considered by the council last year but not adopted, the feeling being that such concession would be helpful only to the ratepayers able to pay. Council also decided against waiving the 10 per cent penalty cm overdue rates. The removal of this incentive to pay would undoubtedly result in a larger amount of arrears and consequent difficulty in maintaining the city's essential services. It will be seen that the large amount of arrears precludes the possibility of granting much relief by way of total rate reduction. For the year 1930-1931 unpaid rates totalled £56,420, or 10.12 per cent of the rates struck. The total arrears at March 31, including rates due since 1919, was £84,971. Loan Indebtedness. The following table affords a comparison of the city's loan indebtedness (excluding power and transport loans, against which debentures of the respective boards are held) at the end of the past four years:— Sinking Loans. Funds. Net.

At March 31, 1931, loans athorised by the council but not raised, amounted to £348,750. Review By Mayor. "It will be seen that, instead of a closing overdraft on all accounts of £6185, as estimated, there was actually a total overdraft of £90,534. Thiis was due to two reasons:—(l) The rates collected falling much short of the estimates; "(2) expenditure of £65,172 in anticipation of loans authorised' but not raised," said the Mayor. "Probably never in the history of the council has such a difhcult problem in regard to the striking of rates presented itself. The council is faced, on the one hand, with the necessity of giving relief to ratepayers, and, on the other hand, the duty of the council to help to keep down the number of unemployed cannot be overlooked. The saving by the 'cut' in salaries and wages already adopted by the council, from the dates that these 'cuts' became operative, will be £20,895. "The committee budgeted for a reduction of the aggregate debit balance from f25,362 to £2279. "I feel strongly that some portion of the ieduction in the general rate should be passed on to the ratepayers," said Mr. Hutchison. "It is true that the individual reduction will not be great, but the cumulative effect represents an allowance of £5723. This, distributed' in the city cannot help but be beneficial."

1931-32. 1930-31. s. <3. s. 0. General ........ 1 33 1 05 Library 0 1 0 1 Hospital 0 4| 0 Si Drainage ....... 0 23 0 2& Sanitation ..... 0 2| 0 2 Special ........ 19 1 6£ 3 115 4 0

£ £ £ 1031 .. 4,972,455 741,831 4,230,624 1930 .. 5,283,813 983,083 4,300,730 1929 .. 5,201,847 890,223 4,365,624 1928 .. 4,730,099 804,717 3,925,382