INCIDENCE OF RATING

Press, Volume LXXI, Issue 21581, 18 September 1935, Page 16

INCIDENCE OF RATING

CHANGES IN THE CITY

CURRENT YEAR'S DEMANDS BEING RECEIVED

Until the provisions of the City Council's scheme for the conversion and consolidation of its loans become fully operative, the ratepayers in the central area will have to carry an inI creased rating levy. This was indicated in a statement made yesterday by the chairman of the finance com- : mittee of the council (Mr E. H- Andrews) when explaining changes which have taken place in the incidence of rating in the city. The current year's rate demands aie now being received by ratepayers, and while those living in the outer suburban areas are finding that most of their demands are for a lower levy, those in the inner city area will to pay increased rates. Generally there has been a reduction all over the suburban area, and an increase m the city. Effects of Scheme N Discussing the effects of the consolidation and conversion scheme, jvir Andrews said that the scheme would not reveal its full-benefit until next year. Until it could become fully operative, the central area would have to carry an increased levy. There were reasons for this. First, the full benefit of conversion could not be obtained during its initial year, as interest for broken periods had to »e met. In the second place, the central area had to bear its share of providing the charges (£1952) on the £220,000 Christchurch reading loan. The central area also had to bear its share of the deficiency on the workers' dwelling account of £IOOO, which was not included in any previous rate. Other Changes Further causes contributing to the position were increases of sinking fund instalments, and instalments _ ot the account for the No. 2 conversion loan amounting to £665. Exchange totalling £2305 had to be met. Although this amount was not included in the consolidation scheme, it had to be provided out of revenue, being the amount of exchange on the central public works loan. The central ward had also to una the difference between £3160 and £316, as a result of the mistake made in last year's Drainage Board's levy, plus the amount for this year's requirements. Out of the £9,066,298 valuation of the city, as reduced for rating purposes, the valuation in the central area was £5,087.567. and on these figures approximately £BOOO had to be found by the central area out of the total of £15,345 required under this heading. The special rate of £44.572 levied this year was approximately £4602 less than that of last year. This, with the non-recurring items in the scheme, would bring the levy next year down by £13,908, after allowing for interest on the new roading loan raised last year. This figure would bring the saving close to £16,000, which had been mentioned as a reduction of charges. _ , , Examples may show the effect of the council's decision. A St. Albans property rated to the extent of £lB 15s Id in 1934-35, this year bears a levy of £l7 12s lid, a decrease of £1 2s 2d. A property-owner in Papanui saves £9 7s 2d this year, having paid £53 2s 5d last year, as against a demand of £43 15s 3d for 1935-36. Another resident of Papanui, whose home is in an area where there was no loan, has to. meet an increase of 10s sd, his rates in 1934-35 being £9 18s 7d, as against £lO 9s this year. A Woolston property has come down from £IOB to £69 12s sd, a saving of £3B 7s 7d. Another saves. £24. In Spreydon east a property rated to the extent of £l9 16s 7d last year has to pay £l6 lis lid this year, a reduction of £3 4s Bd. Similar reductions are shown in all other suburbs. In Central Area In the central area the pendulum swings to the other side. A property paying £BO2 2s 7d last year has to find £829 9s 8d this year, the increase being £2O 7s Id. Another holding rated at £1034 2s 8d in 1934-35 has to meet a demand for £1064 18s 2d in 1935-36, a rise of £3O 15s 6d. On the lower scale of values, a property producing £358 14s in rates last year has an additional levy of £8 3s this year.