CITY FINANCE.

Auckland Star, Volume LXXI, Issue 152, 28 June 1940, Page 5

CITY FINANCE.

WARTIME BUDGET.

REDUCTION OF RATES.

PROPOSALS BT MAYOR. Reduction of 3d in the £1 in the total rate levy, no increase in the water rates, restriction of expenditure to maintenance of existing services and to such works as are essential to the sity's assets, and a balanced budget, were recommended in what the Mayor, Sir Ernest Davis, described as a wartime budget, in presenting the financial statement and estimates for 1940-41 at a meeting of the Auckland City Council last evening.

Sir Ernest said that in planning the city's budgetary requirements, the twin objectives were to relieve citizens to the fullest extent practicable of their local rating charges, and at the same time keep civic expenditure in well-defined limits. He had planned on two things, to keep the present workers fully employed on the maintenance of city assets, and to give ratepayers a chance to meet other forms of taxation.

Sir Ernest added that his recommendation was that the rates should be reduced from 4/4J in the £1, to 4/1J in the £1. Any further reduction could only be made at the expense of the efficient and economical operation of the city services. It would be recalled that for 1939-40 the rates were reduced by Id in the £1, making for the two periods, a total reduction of 4d in the pound. Large Expenditure. Proceeding, Sir Ernest said that a total estimated expenditure in the rating accounts proper was £1,061,220. It would be met by various receipts of £451,132, 1 and the remainder from rate revenue estimated to yield £610,038. A balanced budget had been provided for. Estimated committee expenditures were: Finance, £130,337; public safety, ■ £30,820; parks, £56,417; health, , £17,979; property, £15,578; works, £205,622; town planning, £3090; library, £23,538. In addition, there

was £80,444 for the hospital account, 1 and £497,395 for the interest account, s The estimated receipts were (including i an opening credit balance of £38,235), i money apart from rates, £412,947; ' arrears of rates, £21,248; and current 1 rates, £588,790. 1 Valuation Figures. J The Mayor said that for the year j 1940-41, the total rateable annual value for the city was £2,958,378, compared with £2,864,717 for the previous year. It was anticipated that the percentage of rates collected would remain high, and in recent years there had been a . progressive reduction in arrears of rates. . Provision was made in last year's estimates for the first instalment of traffic signals to the extent of £4000, and this year £8000 was budgeted for. Provision had been made to acquire further proi perties for the Basque Boad children's • playground, and an amount of £7000 1 was anticipated for in the present year, i The works vote had been somewhat ■ increased from last year, and the . library account, after carrying a large i deficit for many years, had been placed .on a more satisfactory footing. The 1 hospital levy was £6413 less than last > year. The waterworks estimates had 1 been framed to provide for a further reduction of deficit, from £16,879 to 1 £9759.

Sir Ernest announced that a special meeting of the council would be held on Friday, July 12, to strike the rates,' so that the first demands might be issued immediately. Consequently, the ■10 per cent penalty would accrue on January 26, 1941.

The deputy-Mayor, Mr. J. A. C. Allum, said the ratepayers would be glad to see the reduction, as it was the only one they were likely to see for a while, as far as general taxation was concerned.

Congratulations were extended by other councillors, and the estimates were unanimously approved.