INCREASE IN CITY'S GENERAL RATE

Press, Volume LXXIII, Issue 22137, 6 July 1937, Page 10

INCREASE IN CITY'S GENERAL RATE

,—» . Estimated Revenue is Higher

LEVY OF 2}d IN £ TO PRODUCE £114,768

Transfer of £7500 from Quarries Account

The city's general rate for the current financial year will represent a slight increase on the figure for 1936-37. Last year the general rate levied was 3d in the £ on a 75 per cent, valuation. This year it will be 2£d in the & on the full valuation. This was decided at a meeting of the Christchurch City Council last evening, after consideration of the estimates for the year. It is the first change which has been made in the general rate 1 for three years. The rate levied will produce an estimated revenue of .£,114,768, representing an increase of £1554 on the estimated revenue for the previous year. Big increases in salaries for the clerical employees of the council account for the major portion of the increase in the estimated revenue, which would have been higher but for decreases effected in other items. Estimated expenditure for the year is higher by nearly £30,000. The funds already available will be increased by a transfer from the Halswell Quarries Account. Major items of proposed expenditure will be met by a loan from the funds of the Municipal Electricity Department. In his statement to the council the chairman of the finance committee (Cr. E. H. Andrews) explained that the reductions in special rates would more than offset the increase in the general levy.

Easily the biggest individual increase Jn the departmental estimates is for the works committee. Last year the amount spent by this committee was £93,741: it is estimated this year that £113.963 will be required. Another big increase estimated for is in the figurea for the traffic committee. Last year this committee spent £1281; this year £9692 has been asked for. The finance committee has asked for £7006 (approximately) more than it (spent last year. Details follow, the shillings and pence being omitted: — Committee Spent. Est. 1936-37 1937-18 £ S. finance .. .. 44,637 37,683 Finance contingency .. Land for street widening ~ .. 920 1,280 Baths and entertainments .. 1,570 1,547 Robert McDaugall Aft Gallery .. .. 566 683 Abattoir and reserves .. 11.443 12,522 Works .. .. 93,741 113,963 Unemployment Relief— Works .. .. 9,879 10,340 Reserves .. .. 6,071 6,214 Traffic .. .. 1,281 9,692 Totals ». , 170,112 194,790 Separate Bates The following are the details of the separate rates approved for the current financial year. There aie decreases in the New Brighton bridge loan, domains rate, and street lighting rate, and increases in hospital and fire brigade fates. Aftit. -Inc. to be on rated last ioi. year. Street lighting .. 9,685 *703 Hospital and charitable institutions .. .. 35.910 *2,251 Christchurch Domains .. 3,661 «93 Christchurch Tire Brigade .. .. .. 10,553 4,087 Christchurch Tramway Bd., New Brighton bridge loan .. .. 303 *2 •Decrease.

the city to 17.8 per cent, in others, while the unimproved values have decreased from .2 per cent, to 18.7 per cent, in the several districts. The committee is recommending the council to strike a general rate for this year of in the pound on the new valuation. This is estimated to produce £114,768 9s lOd, as against 3d in the £ on 75 per cent, value or the equivalent of 2|d in the £ 100 per cent. Value last year, which produced £113,214 4s sd. and renresents an estimated increase of £1554 5s sd.

Salary Increases

"The estimates as submitted provide for increases in salaries amounting to £2293 16s 6d, the award governing the clerical workers in the council's employ which has been submitted for approval this evening being responsible for £1737 3s 2d of this amount, 'The subsidy paid to the various suburban libraries has been increased by 25 per cent, this year and £IOOO has been provided as a grant towards the Canterbury Public Library and £250 to the Museum. It is now recommended that the latter amount be increased to £SOO.

"The usual grants have been provided in addition to those to the King George V Memorial Fund £IOOO, £25 each to the Young Men's Christian Association and Young Women's Christian Association, and conditional provision for the Arthur's Pass National Park Board £IOO.

"A slightly different procedure has been adopted this year in dealing with items of salaries arid other office charges in relation to the works and traffic committees' estimates. It will be noticed that the finance committee's votes in respect of those items which have been charged to the respective Committees, so that the costs of the departments concerned might be more clearly shown, show a decrease over that of last year. "The total estimated expenditure this year is £194,790, as agairist £172,575, an increase of £22,215. The estimated amount already available to meet this expenditure for the year is £73 277 7s, and the committee recommends that £7500 be transferred from the Halswell Quarries Account. This will increase the amount available to £BO 777 7S, leaving the before-men-tioned amount of £114,768 9s lOd to be raised by rate. Provided tat 8y Loan

Remarks of Chairman The report of the chairman of the by-laws, finance, and departmental committee (Mr E. H. Andrews) stated: "I should like to express my sincere appreciation of the undivided attention and able assistance given by every member of the committee, and also by the chairmen of the other committees to a very difficult task.. Especially too, would I thanfe the" City Treasurer (Mr J. W. Niven)* the Town Clerk (Mr J. S. Neville) and othef Officers for their untiring Wofk and long hours devoted to the task of preparation of the figures. "As last year, this year is also a year of demands on the council itit direct city Wdrks and improvements and by various .other public and semi-public activities 6"utSide the council, which have felt Compelled to appeal for financial As y6u all knoW the council will this year be ratine on the new valuations. The revision of the capital values reveals that the aver&f <* reductions in valuations rang<i from 3.S per cent. In some parts of

"It is further recommended that a loan be made from the funds of the Electricity Department to cover the capital costs of the following items:— £

Heplacernerit df Cashel street Conveniences and purchase hj of building • • - • 7 '°°° " u Purchase of land and equip- , ment and building for ve- . 0 0 Wide testing station .. 6.564 0 0 Electric VehituWf control s:gn, High, Colombo, and Here- . „ ford streets intersection .. 1.700 0 0 Construction of new bridge at Hereford street, and Widening of Oxford terrace .. 11,000 O u

"These items are of a Strictly capital nature and should be met out of loan moneys, as it is not desired to load the general rate year by year With such items. "With regard to the expenditure for the testing station for the traffic department, it is also recommended that provision for repayment be made in the traffic committee s estimates at the rate of £SOO perannUm for the first two years following installation and £IOOO per annum until the amount is paid off. While the general rate levy will show an increase of £1554 5s sd, reductions in the special interest rate of £1164 19s lOd, and £709 9s lOd in the street lighting rate, will more than offset the increased levy. The water rate recommended is estimated to produce £1892 7s less than was levied last year. The total reduction in the rates to be levied for council purposes is. therefore, £2212 lis 3d less than last year.

Hospital and Fire Levies

"Ijnf ortunately, however, the rates required to meet the levies of the North Canterbury Hospital Beard and the Chtistehurch Fire Board have increased by £2251 6s lid and £4087 5s fld respectively. It is recommended that a water rate of £1 5s per cent. on the annual rateable value be levied to provide the necessary afnouht after' providing for a margin to meet contingencies. It is also recommended that the uniform annual fee be fixed at £1 19s a pan for the current year, this being 6d a pan higher than last year. "It was hoped, when compiling the estimates, that the amount provided for relief works could be reduced from the £IO,OOO provided for some years past, but at the present time it appears that it will be necessary to provide this amount again for the current year.

Council Rate Lower

"Reviewing last year's expenditure, it is seen that constant watching and care resulted in a surplus of £23,794 Is 4d over the expenditure, and no grants or works on the estimates have been jettisoned to secure this result," Cr Andrews said. "It is due largely to the increased revenue, resulting from the more prosperous time experienced this year. It has been very useful in enabling the council id keep down the rates, even in view of the increased expenditure placed Upon the council 'n increased wages and salaries, the 40hotir week, increased costs of materials, etc. In view of all these facts, in addition to the lower valuation, the fact stands out that a smaller amount is I being collected from the ratepayers— I actually a reduction of fates, so far as the council is concerned. Of course, | while many ratepayers will receive a substantial reduction in their rates,

some will have to suffer an increase due to the variations,-perhaps I might say the vagaries, of the Government valuations. At the same time I think that the ratepayers can, and should, honestly feel gratified with the careful management of their affairs, and that such a budget has been produced which, while not stinting expenditure on necessary city work, has Slightly decreased the burden placed on the ratepayers as a whole."

Discussion by Council

The council's discussion on the estimates was confined mainly to an argument over the wisdom of the transfer from the Quarries Account and of the use of Municipal Electricity Department funds for capital works. Cr. G. Manning said he deplored the inability of the council to do more for the men on sustenance and relief work. The unemployment Vote might well be increased. Cr. Manning concluded by expressing regret that the council had taken so much money from the Halswell quarry account.' It left only a balance of £I7OO in that account at M=»rch 31 of thi« year. Cr. W. S. Mac Gibbon maintained that the transfer from the quarry fund was legitimate.

Loan Recommendations

A complaint that Cr. Andrews-had been discourteous to him as chairman of the electricity committee was made by Cr. M. E. Lyons. Cr. Andrews, he said, had brought forward recommendations about the allocation of Municipal Electricity Department funds about which he (Cr. Lyons) had not been consulted. Cr. Lyons instanced the proposal to borrow £II.OOO for the reconstruction of the Hereford street bridge. Before making such a recommendation Cr. Andrews might well have consulted him as chairman of the electricity committee. "I cannot understand why we should not recognise that these funds belong to the city and may be used as the council wishes," remarked Cr. J. S. Barnett.

"1 have no compunction whatever, in transferring money from the quarry account." said Cr. Andrews, "because the nayment to the quarry account is made by the works committee, which buys the metal. As the committee pays a price which gives the quarries a substantial profit, I can see fio reason that it should not be returned." The estimates were approved, and it was decided that the last day for payment of rates without the statutory penalty should be March 23, IS3B. The recommendations of the allocations from the Municipal Electricity Department funds were approved, except that for the transfer of £1,1,000 for the Hereford street bridge. Consideration will be given to this item at the next meeting of '-ihe council