Drainage Board Puts Up Rates

Press, Volume CI, Issue 29829, 23 May 1962, Page 12

Drainage Board Puts Up Rates

Increased rates the chairman (Mr F. R. Price) estimated the average increase at Is lid a £lOOO of capital xaluc —were approved by the Christchurch Drainage Board last evening to meet an estimated expenditure of £854,597, compared with £773,457 last year.

The levy was estimated to produce £734,856, compared with £690,724 last year.

Rates comprised sewerage rates, land drainage rates and special rates to meet loan charges, Mr Price said. “This year, approximately 26 per cent, of the total levy related to the sewerage rate, 22 per cent, to land drainage and 52 per cent, to special rates,” he said. “The last item is a fixed item relating to interest and sinking fund charges on the loans which the board is unable to vary, and which must increase with every new loan . ork The greater progress the board makes in carrying out its sewer programme, the higher this figure must grow.” Each £1 million of loan money raised added about £70.000 a year to special rates, and in the last financial year £832.430 was raised. During its rapidly-expand-ing programme of immediate past years, the board had been able to maintain relative stability in the rates because it rated on capital value, he said. There had been substantial increases in the capital value of the board's district as a result of building activity and revaluation. Ten years ago the total capital value was £72.381,685; this year it would reach £223,022.185. Average Increase Mr Price said the variation in rates involved an average increase of 9d in each £lOOO of capital value compared

with two years ago, and Is lid on last year, when the rates were eased slightly. “The greatest single factor contributing to the increase of the sewerage rate are costs relating to the operation of the new purification works, while increasing loan charges and wage increases account for the balance of the total increase,” he said. Because of the revaluation of one area and the operation of the Valuation Equalisation Act. it was not possible to make any valid comparison of rates. Mr Price said. On a theoretical basis, the rates for each £lOOO of capital value were:—l96o-61, £3 18s 7d; 1961-62. £3 17s sd; 196263. £3 19s 4d. This indicated a considerable degree of stability considering that £1,674.960 of loan money had been raised in the two years, he said. Land Drainage “If rates are not to be increased again in the near future, it will be necessary to carry out all land drainage work of any substantial cost out of loan moneys,” Mr Price concluded. “This year, £75.000 has been provided fori

s such works. This could be » reduced to a minor figure if the Local Authorities Loans r Board was prepared to j approve a loan for such s works, and it would be post sible for the board to ex- . pedite its land drainage imi provement programme if the t policy of doing such work I from loans instead of revenue was permitted.” i The rates fixed, with last year's in parenthesis, were:— i Sewer Extension Area—- , Christchurch city. £4 (£3 17s i 10d>; Rjccarton borough, tt 16s 5d (£4 Is 3d); Waimairi i county. £3 18s 9d (£3 14s 8d >: Heathcote county. £3 17s 3d ■ (£3 15s sd); Paparua county. £3 18s 2d (£3 17s 3d, Old Sewerage Area.— . Christchurch city. £2 14s (£2 . 13s 9d); Riccarton, £2 Ils 7d > (£2 16s ld>. Loan Areas Where Sewers Are Not Completed.—City. £3 <£2 18s lid); Waimairi, £2 19s (£2 16s 6d>; Heathcote. £2 17s ■ lid (£2 17s Id); Paparua, £2 IBs 7d (£2 18s 6d>. The land drainage rate in the Halswell county was fixed at 13s sd. a decrease of 2d on ■ last year. Loan rates are also . chargeable over part of Hoon Hay in the county.