Heathcote County Reduces Rates

Press, Volume CVIII, Issue 31726, 9 July 1968, Page 14

Heathcote County Reduces Rates

The Heathcote County Council which was on the verge of bankruptcy 16 months ago has improved its finances so much since that it will reduce its rates this year.

A special council meeting last evening reduced the general rate by 3.63 per cent and the water rate by 10 per cent

The county is the only one of six in the metropolitan area which has reduced rates for the current financial year.

The reduction was made in view of an over-all improvement in finances of $226,028.

The motion to reduce the rate caused a sharp verbal clash between Councillors G. N. Bowron and C. M. A. Thompson, who opposed it, and the rest of the council.

Cr Bowron said it would be morally wrong to reduce the rate while the council still owed the National Roads Board $12,288. “The board helped us out at a critical time and this is not the time to reduce rates. We have a moral obligation to repay this money first,” he said.

Cr J. S. Scott claimed that Cr Bowron’s remarks belittled the efforts of the council in recovering from its grave financial difficulties. Cr Bowron: Where are our business obligations’ The chairman (Mr C. D. Le Comte) said the council had made a legitimate business arrangement with the National Roads Board and could repay the money from loan moneys without reference to the rates. Cr Bowron: This is a matter of opinion. Mr Le Comte: Yes, this is my opinion. Cr W. B. Laing: A little bit of rate relief would be

very welcome at least in the area which I represent. Cr Thompson said that the difference between the rate for this year and last was so small that in view of the debt to the National Roads Board, this year's rate should be unchanged. He moved for that

Mr Le Comte said that the council had done better than estimated on last year's rate and there was room for a small reduction which ratepayers should get. He moved an amendment that the rate be fixed as recommended.

The amendment was carried by five votes to two. SURPLUS BUDGETED

Heathcote has budgeted for a surplus in the general account this year of $18,889 in spite of the rate reduction. The County Clerk (Mr K. D. Stills) said that because of the rapidity with which the general account—in debt for $175,012 at .the beginning of the last financial year—would move to a credit balance, a slight reduction in the general rate was appropriate. He said that the account had ended the year with a debit of sl4,Bl3—an improvement of $160,199. The account had been supported during the year by a special loan of $121,981. The electricity account had a debit balance of $99,869 at the beginning of the last financial year and a debit balance of $44,771 at the end. No special loan money had gone into the account and the improvement was solely from revenue. The county fund at the

bank ended the year with a credit of sl9,22l—the first credit shown on the account since March 23, 1964 when the balance was $1155. Mr Stills said general account funds would have looked even better had not the council had to refund $6144 to the National Roads Board for subsidies previously overclaimed. He said that the general rate of ,53c this year would bring in an estimated $121,223. If the council had retained last year’s rate of ,55c the income would have been $125,797. The council cut the water rate from .2c to .18c. This means that people previously paying the Cashmere Water Loan rate will receive a reduction of 10.12 per cent Mr Stills said the account would still be in debit at the end of the current year but as the council had provided for industrial expansion in the Hillsborough area there was no point in bringing the account into credit ESTIMATES ADOPTED

The council adopted the estimates which showed receipts of $169,006 in the general account, $339,800 in the electricity account, $69,145 in the water account $102,271 in the roads, streets and bridges account $15,550 in the rubbish account, $23,539 in the plant and machinery operating account and $22,172 in the plant purchase and renewal account

The estimates allowed $89,983 for subsidised and non-subsidised road works—an increase of $7446 for nonsubsidised works. Items of work considered on the works tour but not definitely adopted amounted to another $31,800.

Summarising the position, Mr Stills said he would be disappointed if the final figures were not better than the estimates.

“Budgetary control must be exercised at all times and this has functioned satisfactorily during the last year,” he said. "The accounting system was overhauled to enable easier preparation of expenditure statements, balance sheet and estimates. “With estimates it is no good setting them and forgetting them. If income does not come up to the estimates or estimated expenditure is substantially exceeded difficulties would arise.

“It is, therefore, difficult to add the odd job during the year. Before doing any extra work it is essential to know where the finance is coming from.”

Mr Stills said that the council could be proud of the achievements of the last year and councillors could be congratulated for the job they had done.

Electricity Surplus The Heathcote County Council has budgeted for a surplus of $55,681 in its electricity account this year. The County Clerk (Mr K. D. Stills) told the council last evening that the surplus was likely even allowing for increased work. “If it is achieved I feel the council should consider either reducing its tariffs Or spending the money on improvements to reticulation. “I commend the conversion of all overhead lines to underground. Not only does this reduce maintenance costs but enhances the area and increases property values. It also obviates storm damage to a large degree. “All new areas have underground reticulation and it is obvious that a start will have to be made on other areas,” he said.

The preliminary estimate of cost of conversion to underground wiring including street lighting and service on both sides of the street is $3OO a chain.