CITY RATES

Evening Post, Volume XCI, Issue 143, 17 June 1916, Page 2

CITY RATES

METHODS OF FINANCE.

. In a letter to the City Council, tho Hon. J. G. W. Ait-ken, president of the Greater Wellington Town Planning and Municipal Electors' Association, states : 1. The rateable value of the city having materially increased during the past five years, the amount of general rates collected in 1915, compared with 1911, shows an increase of, approximated, £16,000 for the year. 2. The revenue from rents of the city's properties shows an increase for 1915 of £12,000 over that of 1911.

3. The amount expended out of the general account on works of a permanent nature (in reality, capital expenditure) has, during the five-year period, increased to such an extent that during 1915 the total amount so expended exceeded £20,000, equal to 25 per cent, of the total general rate collected.

4. In view of the above facts, the increase of revenue has not had the natural effect of reducing the amount of the general rate kvied upon the ratepayers. 5. This policy has resulted in a direct contradiction of the forecast of successive Mayors (for niany years past), namely, that the increased rents.derived, from the city's property would materially reduce the annual burden of the ratepayers.

6. The large expenditure out of thfc general, rates of sums properly chargeable to capital, which I have already pointed out,, amounts to a very large sum—one particular item, viz., Day's Bay, is not less than £10,000—in the opinion of the executive, is unsound, in principle, and enables your council to carry out extensive works, which should bo sanctioned by the ratepayers before being undertaken.

My executive, therefore, respectfully requests that the council should, in its financial policy, resort to the. old established principle that the general rate should be levied each year on the basis that the total receipts obtained therefrom, plus rentals and other general revenue received, should not exceed jthe amount necessary to cover administration and maintenance expenses.

My executive trusts that the estimates for this year will be fixed 60 as to cover bare necessities only, that the general rate be reduced accordingly, and that its recommendation will receive the favourable consideration of-your council, and be put into active operation during the passing of the estimates for the current financial year,—On behalf of the executive, yours faithfully (sgd.) J. G. W. Aitken, President. ■

The letter was received by the council at its last meeting, and was referred to the Finance Committee.