Heathcote rates up 3.06 p.c.

Press, 27 June 1989, Page 8

Heathcote rates up 3.06 p.c.

By

TOM METCALFE

Heathcote County rates will rise 3.06 per cent this year, although the council estimates only a 1.46 per cent increase in expenditure.

The difference between income and expenditure was because of increases in the county’s contributions to the Canterbury United Council and the Museum Trust Board, as well as the increase in GST, said the county chairman, Mr Oscar Alpers, last evening. Those increases, which the council had no control, over, were responsible for an increase in council expenditure of 5.69 per cent, but a rise in the capital value of property in the county of $lO million to $413,549,500 reduced the increase to 3.06 per cent, he said. The rate was set at this month’s council meeting. Mr Alpers said that the council would raise $2,035,000 from rates. Council fees and charges would provide $662,000, subsidies $351,000, water charges $164,000, the sale of council properties $150,000 and a reduction in cash reserves $lOO,OOO, giving a total income of

$3,462,000. The properties sold by the council were staff houses and had been for sale for some time, he said. The property sales and the reduction in cash reserves were balanced by a similar capital expenditure, although the council was reducing its reserves because they were higher than expected after the last financial year, he said.

The council could have achieved a nil increase or possibly even a small reduction, as some other councils had, but instead had budgeted as if the council would continue to run after the new Christchurch City Council takes over on November 1. “There has been no attempt to run the thing down,” he said. Achieving a nil increase would have left the council short of money and unable to cope with any unforeseen event next year.

Heathcote had not had the same increase in the value of property as other councils, such as Christchurch City, which meant those councils had an increased rating base to absorb cost increases.