LOWER RATES.

Auckland Star, Volume LXIV, Issue 150, 28 June 1933, Page 16

LOWER RATES.

MOUNT ALBERT FINANCES. RELIEF WORK PLANNED. Presenting the annual estimates and rating schedule for the forthcoming year at last night's meeting of the Mount Albert Borough Council, R. A. Fcrner, chairman of the legal and finance committee, said that a small reduction iu rates would be possible. It was proposed, lie said, to relieve the ratepayers by passing on, in rate reduction, the saving of £3332 from the reduction of interest charges, £1051 from the Power Board's reduction of street lighting charges, £204 saved by a new contract for sanitary removal, and £210 from other economies. The maintenance grant would be increased from £.jOOO to £0000, but the whole of the increase in interest and sinking fund payment on the loan of £>3000 raised and spent last year would be met out of economies cll'ected by the late council. For the relief of unemployment, th<? council proposed to spend £10,000 out of loan moneys. The annual charge of this would not come on to the rate.until next year, but if the present trend in the borough finances could be maintained this expenditure could be carried without increasing the rates. Certain dillicult factors in regard to the borough finances continued to ooerate. There was lirst the grave wrong indicted upon ratepayers by the Crown's continued disregard of the rating obligation. Where the Crown as mortgagee entered into possession of a house property under the powers contained in its mortgage, it declined to pay, not only the arrears which had accrued, hut also the current charges. The i-ates thus lost to the borough had to be made up by an increased levy on the rem aini ng ratepayers. Another unfavourable development was the action of a large number of ratepayers in obtaining reductions in the valuations of their property by special valuations. As a result it was estimated that the rate roll of the borough would be reduced from £5,358,737 last year to £5,215,95 C, or by £100,781. However, as the result of representations to the Valuer-General, the whole borough would l>c revalued this year to restore the equitable balance between the ratepayers for next j year's rating. Mr. Ferner said the fact that call moneys had been readily available to the borough during the past year was a testimony to the soundness of the borough's financial position. The borough paid interest on such call moneys at a rate of interest of 1J per cent to 21 par cent lower than ft would have to pay to its bankers for similar accommodation on overdraft. Last year the saving from this expedient was £575. Last year the council budgeted for a reduction of £002 in the general account, but actually the debit was reduced by £2435. mostly as a result of the rate collection campaign. The debit balance oil March 31, 1933, stood j at £8537. It was estimated that the! debit at March 31, 1934, would not exceed £9030, and if that figure were achieved, it would really result in the council having gained ground to the extent of £500. The committee rccommcndcd that a general rate of 38-100ths of a penny in the £ lie struck on the capital value of £5,2)8,950. This represented a reduction of ]-100ths of a penny in the £ on last year's general rate. The total of the general, separate and special rates would be 3ld in the £on the capital value, as against 3 3-3 d in the £ levied last year. It was rccommcndcd that these rates be consolidated and struck as one consolidated rate of 31d in the £. A nonconsumers' rate of 21 per cent oil the annual value, and a domestic water rate of 5 per cent on the annual value were recommended, these being the same as for some years. There would be no alteration in the charge for refuse removal, a reduction of 2/0 per householder having been made last year. It was recommended that the charge for sanitary service be lixed at 22/, a reduction of 0/ per annum.

A discount of 2 per cent to ratepayers who paid their rates within 30 days of the demand was recommended. This was a reduction from last year, when 21 per cent had been allowed, but 2 per cent would not cost the council anything owing to the saving of interest. "The report shows the enormous amount of money necessary to reduce rates in the borough," remarked the Mayor, Mr. W. F. Stilwell. "It rather stagger s one who starts out full of optimism and ideas to come up against these hard facts. But the borough is progressing. For the second year in succession, we have reduced rates and reduced our liabilities. The borough is in an eminently stable position." The report and recommendation of the committee were adopted.