LOWER HUTT BOROUGH

Evening Post, Volume CXVII, Issue 55, 6 March 1934, Page 13

LOWER HUTT BOROUGH

FINANCIAL POSITION

REVIEW BY MAYOR

Dealing -with the finances of the borough, the Mayor of Lovrcr Hutt (Mr. J. "\V. Andrews) at a public meeting held last evening drew attention to the fact that the borough accounts were in credit £2176 2s Id on March 31, 1926, but were in debit £7533 18s on March 31, 1927, having gone to the bad by £9710 0s Id in that year. Prom then on the rot continued until the borough was in debit £27,766 17s Id on March 31, 1933, and £35,516 8s 3d in May, 1933, the month he: assumed oftice. The total amount of slide in seven years was thus £29,942 19s 2d, or an average deficiency of £4277 11s 4d per year. This meant that the rates were nearly I'l too low to enable the council to balance its budget. ■ The financial slip was £7320 12s lid from April 1, 1932, to March 31, 1933. STOPPING THE EOT. The Mayor went on to compare the position of the borough for this year, up to January 31 (10 months), with the previous period. "Before I assumed office," he said, "I said that the utmost vigilance would be required in order to stop the rot. The rates were increased by -Jd. . This would produce £3500 extra if everybody paid on original valuations. But reductions of valuations under section 50 of the Act accounted for half this amount. Then, over £4000 has been written off on account of mortgaged properties which had reverted to the State, of which £1851 was for one year's rates. This problem of non-collection of rates on State-reverted properties is a very serious one indeed, especially for Lower Hutt. In many cases the State collects more rent than private owners, yet pays no ordinary rates. You will see that the 3d increase in rates was absolutely essential in order to provide the same amount of money as was budgeted for in the previous year. "The question of reductions of individual valuations under section 50 of the Act has engaged our attention, and representations have been made to the Government. An amendment was brought down last session which gives local bodies an opportunity to level up the position considerably. "We are now able temporarily to reduce valuations for rating purposes, and the council will most probably make use of those powers this year. Reductions in general valuations will have the effect of spreading the burden of rates more equitably than in the past two or three years. LOSS CONVEETED INTO GAIN. "In spite of these adversities, the borough accounts wore £2110 15s 6d better on January 31 this year than on January 31 last year, plus a further £1000 Harbour Board loan, for which no sinking fund had been provided, and which has been repaid from, overdraft during this period. Thus you will see that a loss of £7320 12s lid during the last financial year has been converted into a gain of £3110 15s 6d for tho first ten months of this year, or a net improvement of over £10,400 compared with the previous year."