Board’s 7.5% rate increase 'lowest’

Press, 20 May 1987, Page 8

Board’s 7.5% rate increase 'lowest’

The Christchurch Transport Board’s rate increase was probably the lowest for any local authority in New Zealand, said the chairman of its finance committee, Mr Clyde Sugden, yesterday. The board was discussing the 1987-88 estimates of revenue and expenditure at its monthly meeting. Mr Sugden said the rate increase of 7.5 per cent was "surely a record” for any local authority in New Zealand. The'actual revenue to the board 0f.59.5 million will be only 2.9 per cent

higher than for the last financial year, because of deductions for collection commission and GST. The board estimated an expenditure of $25 million for the year, the $l4 million forxsalaries and wages by far the largest item. The cost of diesel fuel oil was estimated at $1.9 million for the year. Board members were told that the proposed increase of 8c a litre would add $250,000 to the fuel bill for the rest of the year. It was also pointed out to members that although the Government gave the

board $4.5 million through the Urban Transport Grant, the board paid the Government $4.2 million back in taxes and levies. The estimated passenger revenue of $8.3 million allowed for a 20 per cent increase in fares from January, 1988, Mr Sugden said. “But the increase could be less, or more, than that,” he said. “The decision will be made later in the year.” The board approved the estimates, including the transfer of $1 million of last year’s surplus into the asset renewal fund.