CITY COUNCIL ESTIMATES

Evening Star, Issue 22989, 21 June 1938, Page 14

CITY COUNCIL ESTIMATES

ESTIMATES SUMMARISED. The Finance Committee’s summarised report of the yearly estimates states i— - 11 Dealing with the general account first, the draft was prepared for the previous council in April last, but was not presented- until the present committee took office. The statement showed the gross estimated receipts at £220,309 and the estimated expenditure at £265,430, leaving a' deficiency of £44,121. “ The draft supplementary statement known as the special .works fund, based on the same income to that fund as last year by way. of diversion of renewal' funds, and providing for expenditure 'on the same basis as - last year, in turn shows a deficiency of £35,826. “ Before considering measures to deal with this most unsatisfactory position, your committee deemed it desirable to make a detailed investigation as to the causes leading up to the heavy increase in the financial and obligations of the council. The results of the investigation are set out in a minute by the chairman, copy of which is furnished herewith for the information of councillors. “ On the figures set out in the minute there seems to be no other conclusion than that, with a relatively small increase in the revenue, the expenditure advanced year by year until to-day it is quite beyond the ordinary resources of the council. The expenditure has in the main been, caused by substantial additions to the working staff, and the cost of providing ‘ overhead ’ charges for the many works which have-been put in hand for-the primary purpose of absorbing labour. The basic rate has remained the same throughout, the three years, and financing has been accomplished by resorting to increasing diversions of the city renewal funds. Since 1935 the renewal funds, due to depletion by diversions, plus the ordinary demand on the funds, have fallen by £118,479. Simultaneously, the financial responsibilities of the council have increased.by wage increases costing the general account, alone £11,827, provision of sick pay (£1,467), together with holidays and altered working conditions, which have had the effect of further adding to the council’s costs. The cost of all subsidised and relief works was further substantially advanced by the extension of the increased wage rate of 2s 5d an hour to both subsidised workers and. scheme 5 workers.

“ In 1934-155, when the genera! rate was 2s in the £, the budget, including a provision of £8,484 for relief works, was.balanced with a total expenditure of £181,726. - By 1937-38 the expenditure _ had _ risen by no less than £119,526, in which was included • the substantial figure of £69,399 for subsidised relief and special works. “If these expenditure figures are restricted to the three spending branches of the council—the works, sanitary works, and reserves branches—the position again is as follows:—l934-35, £74,238: 1937-38, £117,111, In other words, the demands of these departments, which also include the outgo for subsidised and relief works, advanfed by no less than £42,873. “ This' is largely accounted for by an increase in the number of employees from 249 to 382, with a correspouuing advance in the wages cost from £54,836 to £73,690. The figures do not include scheme 5 workers. /'measures to be taken to deal with the position as above summarised occasioned very lengthy and careful consideration, and the committee is of the opinion that the following preliminary considerations should apply as a matter of policy;— ; (a) That the so-called deficiency budgeting practised during the fast three years be terminated forthwith. (h) That the special .works fund be abolished and the figures incorporated m the general estimates. (c) Thatv as a matter of definite policy the diversion of renewal funds as practised during the past few years be no longer resorted to. “ (dj That as far as possible the optside staffs be not diminished meantime pending an effort being made to provide loan funds for city improvement works to which surplus staffs can he transferred, thereby relieving the draw on the general account. This involves cutting down the demands of the spending branches to the lowest possible minimum, and effecting similar reductions on many other items of expenditure. “ fe) That no now works be , undertaken meantime without special sanction, and that the scope of works generally be tapered off as the year progresses. “ (f) That m the meantime provision _ in the budget For subsidised and special works be limited to cover a period of six months only, pending development of loan proposals. “ (g) That the scheme 5 operations be terminated at the earliest possible date. “ Applying these principles, the committee has-^ “ (a) Reduced the expenditure side of the estimates by reducing the demands of the works, reserves, and library branches, together with a substantial number of miscellaneous items, by a total of £26.998. " (b) Raised the receiots side by making sundry advances to the total of £7,300. Details of these re-

Increase in Rates for Year Difficult Position Faced RENEWAL FUNDS UNTOUCHED The City Council last night had before it the estimates of receipts and expenditure for the current financial year. A considerable amount of discussion look place, and the proposals put forward by the Finance Committee involving the levying of a general rate of 2s 5d and a hospital rate of Bd, an increase of 4d and Id respectively upon last year’s level, were agreed to.

ductions and revisions are set out in the chairman’s minute already referred to. “ (c) Abolished the special works fund and incorporated a provision of £23,530 in the general estimates to cover the cost of subsidised and relief works for approximately six months from April 1 last. “ Notwithstanding these provisions, a sum of £2o*ooo is still needed to balance the reduced budget. If the council accepts the proposal that no further resort must be made to renewal fund diversions, there .is only one source from which the sum named may be obtained, and that is by an increase in the general rate. A rate of Id in the £ produces £5,000, and the committee therefore recommends that the general rate be advanced by 4d in the £ from the present rate of 2s Id to 2s 5d to produce the' required sum.

This recommendation is made with the greatest regret, and its need must be found in the heritage of financial obligation which has been passed on to the present council. It is necessary to add that, with these provisions, it is essential that the council receive further substantial assistance from the Government by way of subsidy in respect of all those* men on subsidised work for whom the council is now responsible. Without such assistance the council cannot carry on.

“ The loan proposals above referred to are suggested to enable the council to carry out urgently needed improvements to footways and streets, mainly in the residential areas. If the proposal should be sanctioned by the ratepayers it will be possible to remove the draw on the general account dub to the cost of subsidised and special works to loan account. If the proposal is rejected there'will bo no option but to close - , down these works and discharge the employees. Your committee, therefore, recommends that the necessary steps be taken to formulate loan proposals with the least possible delay.

THE WATER ACCOUNT. “ The same difficulties arise in regard to the estimates of the water account as in the case of the general account, and tor the same basic reasons. Here the estimate shows a deficiency of no less than £46,937, wholly accounted for by the demands of the department for capital expenditure, mainly for subsidised works. The department is now carrying 142 employees, as compared with 51 in 1934-35, and the wages cost in the same period has increased from £12.771 to £77,117. The overhead charges to keep the labour force employed are very heavy, as the purchase of large quantities of mains is involved. This department was called upon in 1935-37 to provide £10,744 out of its renewal fund contributions to the special works fund, despite its own needs for capital. The extraordinary course was adopted last year of transferring no less than £23,011 from the special works fund back to the water account, surely a most inconsistent and illogical method of financing. It is impossible for the water department to undertake the volume of works set out in the estimate out of revenue. The proper course is to provide the department with the necessary capital by way of loan, and your committee accordingly recommends that steps be taken to. formulate loan proposals at the earliest possible date. If the loan should not be sanctioned the bulk of the present operations of the department will require to cease. “ The estimate now before the committee has been dealt with as follows:

“ (a) By incorporating in the estimate the sum of £18,359, representing the balance available at March 31 last for the 3in main renewal work, so that this sum may be available for both the last-mentioned work and capital expenditure.

“ (b) By providing the sum of £5,000 out of the general account for similar capital expenditure with the object of assisting to carry on these works until the loan proposals are determined by the ratepayers. “-(c) By reducing the item of £12,390 for extensions.-to the same figure as last year—£6,2so.

“ The committee further recommends that the item of £3,000 in the statement representing the proceeds of the hose tap charge be eliminated, and that this charge, which has been a source of irritation to the public, be abolished. “ Otherwise the statement provides for the same rating provision as last year—ordinary rate 9d, special rate Id, the water closet charge remaining also at last year’s figure of 15s. “ These adjustments leave the statement with a deficit of £6,187, and it is proposed that in the meantime no special provision be made to cover that item. THE HOSPITAL RATE. “ The figures in regard to the hospi'tal rate Indicate that an advance of Id will be needed to meet the Hospital Board's requirements. The hospital rate account at March 31 last was in debit £2,805. The board’s demands have increased this year by £2,480, and there is therefore an additional outlay of £5,285 to be provided for. This can only be met by imposing an additional rate of Id to produce £5.000. TRADING ACCOUNTS. The estimates of the trading accounts prepared pursuant to the Standing Orders are also submitted for approval? “ The demands of the E.P. and L. department for capital expenditure'are at present heavy, the sum of £49,000 being called for this year. It will take the department all its time to find this amount and keep within overdraft limits. This department has borne the

brunt of renewal fund diversions, Inning been called upon to find no less than £90,369 within three years. In the same period it has transferred, £55,780 to the municipal account in relief of rates, and by diversion of insurance fund premiums. At 31,3,35 the department’s renewal fund stood at £230,682, while at 31,3.38 the amount had fallen to £150,462. “The electric tramways and buses statement shows a small deficit of £389, while the cable tramway figures show, in the ease of Alornington, a surplus of £2,384, and lioslyn a deficit of £563.

“The. gas department figures do not call for .sjiccial comment. The stalenient is balanced at £103,100. and provides for a transfer from profits to the municipal account of £1,500, or £SOO more than lost year.. THE RATES. “ If the foregoing recommendations are approved the rating position will be as under;—

CHAIRMAN’S STATEMENT. Cr Taverner said that the figures supplied by the town clerk had enabled him to make a fair and reasonable statement in regard to the position as it was found at present. The proposed estimates for the current financial year, said Cr Taverner, had been drawn to meet as far as might possibly be done at this stage the following considerations : (a) To end as quickly as circumstances would allow the former “ easy ” method of finance, which had led the council step by step into a volume of expenditure on works which was entirely beyond the ordinary resources of the council. (b) To provide as quickly.as possible other finance by way of loan in order that the demand on the general account and the hitherto so-called “Special Works Fund” might be transferred to loans. (c) To make temporary financial provision meantime - to provide for the existing scope of work from April 1 last until loan moneys were available. ' (d) To reduce the ordinary demands of the spending departments to the lowest possible minimum in order to further assist in balancing the budget.

A SERIOUS POSITION. The alternatives to accepting the foregoing y determinations, said Cr Taverner, were of a very serious character, and gave rise to much thought. The city renewal funds, due to the depletion by diversion to the special works fund, and the demand for the ordinary requirements of the departments had fallen back since March 31, 1935, by no less than £118,479. The withdrawals rose from £83,234 in 1935-36 to £109,072 in 1937-38. It was necessary to make it quite clear, the speaker continued, that these provisions in themselves were not sufficient- to bridge the financial gap. In addition, it was considered that the council was amply justified in looking to the Government for further assistance by way of subsidy for those workers on a subsidy basis for which the council was at present accepting responsibility. The position had been represented to the Government, and it was necessary to make it clear that if additional assistance was not forthcoming, the whole of the present scale of full-time subsidised work would have to cease at an early date.

In any case, the speaker proceeded, it was not possible to continue to provide for the scheme 5 operations. The council had carried this scheme since its inception, and had done more than its fair share in connection therewith. The council could not carry this scheme in addition to making provision for full-time subsidy workers. There was not financial room for both. Scheme 5 had been largely abandoned in other parts of New Zealand, and it was intended to bring it to a close in Dunedin by advising the Government at an early date that the council was no longer able to continue it.

The No. 5 scheme cost the council at least £IO.OOO per year for subsidy on wages and overhead charges. In endeavouring to effect the change-over the • council felt that the ratepayers would recognise the position and agree to carry some of the burden by way of an increased rate. The product of the rate would at least recompense the council for the extra charge it was called upon to shoulder by the increase in the labourer’s rate from 2s 3d to 2s od per hour, which increase must be accepted now, whatever the opinion as to its Justification. Whether the loan proposals were approved or negatived by the ratepayers, the former tin justifiable drain on the trading departments’ renewal funds must be brought to an end this year.

QUESTION OF EMPLOYMENT. The limiting factor with which the committee had had to contend was the continued employment of 567 men, and he wished to emphasise that there was no shadow of possibility' of providing work for this number without, firstly, an augmented subsidy from the Government Employment Fund, and, secondly, the sanction of the ratepayers to loan proposals for works and water department requirements. The question of reducing at this stage the number of men employed had not been considered, the committee being agreed that for the present at least it would not ask the council to cause hardship and to increase unemployment. On the other hand, instructions had been given that under no circumstances would the number be increased. The Minister of Labour had been fully informed of the position, which was brought about by the previous council employing many more than it was at any time justified in doing. It would appear from recent Ministerial statements that the employment position had much improved, and the council would therefore he justified in reducing the number dependent on the municipal funds for work. There was every reason to believe that further assistance would be made available from the snecial taxation provided for the purpose. It should be realised by councillors that the previous and orderly procedure of providing finance and engaging labour for necessary works had entirely disappeared as a result of the previous policy, and this on a constantly expanding basis. The result was that many necessary works could not now be undertaken, and the proper development of the municipality was thereby retarded. During the last 10 years the ■ ■ouneil bad financed from its own funds about £230,000 in relief works.

Tlic necessity at one time was readily recognised. but when legislation made provision for the collection of special taxation it should have caused the drain on municipal funds to diminish. The contrary effect, however, was the cause of our present position. RENEWAL FUND UNTOUCHED. The .statement this year omitted any diversion ol renewal fund contributions. The total emersions during tlie lasi few years amounted to £130,104, ami the fund at March 31 lust stood at £359.500, while the annual contribution which was recommended by the treasury had been increased to £83,000. In justification of this policy it should be clearly undertsood that if a position was reached that the fund could not supply the requirements of the various departments for plant renewals the only alternative was to raise new loans, and this should be avoided. As it was, the renewal account had in certain cases been called upon to finance what should have been capital expenditure. It was futile to speculate as to the procedure which the former council would have adopted in these circumstances, but it should be stated that if the expenditure as listed iii the draft estimates had been eventually agreed upon it would have been some £34,185 in excess of the previous year, and if that a sum wore added to what had evidently become the regular procedure of diverting another £51,000 from the annual renewal fund contributions, the combined figure would have been the equivalent of a Is 6d increase in the general rate.

Ihe reductions made from the draft were referred to in detail in the chairman’s minute. These totalled £26,998.

diminished value of rates. A reference should also be made to the diminished value of the rates. The valuation of the city bad not yet recovered from the successive reductions made during the slump period. In 1930-31 a general rate of 2s in the £ produced £134,392. or, in other words, a rate of Id at that time produced £6.433_. To-day a rate of Id'produced only £5,000, and the proposed 2s 5d rate produced a total of £145,000. So far the ratepayer had not been asked to directly contribute to this catalogue of rising costs, but the avoidance of extra rating had been at the cost of diminishing the financial assets built up during many years of profitable trading. The method must now be reversed and some portion of the additional cost obtained from rates. The committee was reluctant to adopt this course, but there was rto alternative. The amount to be derived from the proposed increase was £20,000, the levy for the year being an increase on the general rate of 4d, INCREASE IN PAY. As items of extra costs, it was as well to refer to the 2d increase in the pay of labourers, which was estimated to cost the council £10,943 for a full year for those branches only that wore a charge on tlie general account. It to this were added the wage increase granted, to members of the Drivers’ Union, amounting to £BS4, and the similar charge for tlie water department, amounting to £3,068, the total reached was £14,011. Also the matter of sick pay during the last year cost the general account the sum of £1,467 and the trading accounts £2,623, a total of £4,090. In addition to the constant expansion of works and increase in labour force, costs had gone up generally by reason of; (a) Increase in wages rates; (b) substantial increases in costs of materials; (c) alterations in working conditions involving payments by the council for annual holidays, etc.; (d) the overhead costs and all relief and subsidised works had materially advanced by reason of the extension of the 2s od rate to all such workers. HOSPITAL RATE, The Hospital Board demand this year had advanced to £37,668, no doubt in part brought about by the same causes ol rising costs, and this would require a rate of Bd. The council was merely u collecting agent in this case, and had no voice in fixing the amount required by the institution. THE DISCUSSION.

Cr Taverner then formally moved the adoption of the report. Cr Gibson, in seconding the motion, said that he saw no other course open but that suggested by the mover. Much had been said during the campaign about taking money from the renewal funds, and it was upon that point, he contended, the election had been won and lost. To take money from the renewal funds, therefore, would be to create a position of inconsistency. It was realised that the sudden stopping of taking money from the renewal fund was going to cause certain difficulties, but ratepayers would doubtless be ready to pay a little extra for providing employment. If they did not so agree they could express their disapproval by negativing the loan proposal. Cr J. W. Munro said lie was against the report. A lot had been said about the previous council’s method of handling the finances. After referring to the sums taken from the renewal funds for certain works, including the tunnel now being completed by the electric power and lighting department nt an approximate cost of £9O, he said that right down through the years there had been , a diversion of the renewal funds for the benefit of the unemployed on the No. 5 scheme. In his opinion, the council was wrong in making any increase in the rates. It would be wise to carry on its finances as in past years and keep the men employed. Members went before the public with ft definite policy, and to be logical they must sack 300 unemployed men.

Voices: No! Yes, that was what they would have to do. repeated Cr Mmuo. When the ratepayers returned the council at the last election they could not have meant anything else biit that. There was uo alternative hut to sack those men. It was not a pleasant task for the council to recommend an addition to the rates, said Cr 1). C. Cameron. The whole position had been fully gone into, and he considered that the chair--1 man and his executive officers were entitled to praise for the very informative statement that had been made. The demands from the _ different departments to the council for moneys had been reduced by the sum of £20.998, while the suggested receipts had been raised to £7.300. After the expenditure had boon reduced to a minimum there was still the sum of £23.530 to he found to balance the budget. Under the old council the speaker had supported the diversion of £20,000 from the renewal funds, and if that council had been re-elected its policy would have been to again divert from throe funds. Ratepayers were not expecting the present council to recommend any increase in rates unless such an action were absolutely necessary. The increase now proposed need not be permanent, however. The ratepayers were wrong in turning clown the last proposed £IOO,OOO loan. In order to place the council in a stable financial position, councillors should get a wav from the renewal funds. In his opinion the Government would be more liberal in the matter of a subsidy for those men who might be unemployed in a

few months’ time. He supported Air Taverner in his budget in that he thought the only way to get the money at present was "from the ratepayers. Ci- Smith said that it must be recognised that this council was placed in a position in which no previous council had ever been placed, and it appeared to him that the proposal now put before the council was the only possible way out. They all realised that it was a most unpopular move to raise rates; at the same time the public expected the council to be big enough to face the position. So far as those councillors elected as Citizens’ Committee nominees were concerned, they would be expected to set their faces strongly against any diversion of renewal funds, and they must face the position on this basis no matter how drastic the result might be. Personally, said Cr Smith, lie had been in favour of a od rate, but had agreed to the reduction to 4d on being shown that a requisite reduction in expenditure was possible. After all. said the speaker, it only meant a matter of 8s 4d on a house of the capital value of £I,OOO and a rateable value of £SO. Of course, to the smaller people and the small traders the matter would be serious enough, but with the reduction of hours and increase of wages such burdens must be expected. The public generally more or less expected the council to clear up the position. MAYOR’S AMENDMENT. The Mayor .said that the Finance Committee had louncl nsell coulrouted wu.li unusual difficulties. He quoted figures from tfie estimates, ana said tuat he had intended to put forward another proposal, .but alter listening to the speakers fie saw that this was not likely to meet with the acceptance of the majority and he would not now move it. it would be seen, His Worship added, that the practice of budgeting for a deficit had been done away with. 'This had been a definite weakness during the last two or three years. The object ol the present council had been to keep down the taxation burden as much as possible and to keep as . many men as possible employed. Should it be necessary to reduce staffs it would be done bv a tapering-off process and would certainly not be begun during the winter months. There was one feature, said the Mayoi’j which he thought should be recognised, and that was the fact that if a heavy rate was going to be struck it might prejudice, the council’s ease when it went to the ratepayers with a loan proposal. It would be like asking the ratepayers to pay at both ends. He would like to see a rate increase of not, more than 2d ; to levy a rate of 4d and then ask for an additional Id for hospital purposes would, in his opinion, prejudice the success of any loan proposal. 'This additional sd, too, would be a tax upon industry. For that reason he thought they should do their level best to ease the burden of the taxpayer instead of increasing it. But owing to the extensive expenditure by the council during the last three years the present council had no alternative but to pass on part of the result of that expenditure m order to ease the position. The council had recently been in touch with the Government, said the Mayor, and had put before it certain claims in the matter of assistance for subsidised workers. The city had been hearing this burden which, lie ventured to say, had been greater than that borne by any other centre for the same purpose. It was known that when £IOO had been spent in this way, 40 per cent, represented Government subsidy and 60 per cent, had been provided by the city council. This was too heavy a burden to continue to be borne. He hoped that the representations made to the Government in respect of No. 13 workers would result in greater, assistance being received. His Worship then moved, as an amendment;

"That in view of the anticipated assistance from the Government in the matter of subsidy for scheme 13 workers, the proposed heavy advance of 4d in the general rate be reduced to the extent of Id, and that a corresponding reduction of £5,000 be made in the estimated provision of £23,530 for subsidised and relief works.” In moving this, His Worship said that he felt confident that, if it were carried, it would not mean the displacement of men to the extent of £5,000. It would, however, .relieve the rate, payers of 25 per cent, of the added burden while not upsetting the statement of expenditure and receipts. Cr J. Wilson, seconded the amendment.

Cr Munro: I rise to a point of order. The resolution is not yet before the council.

Cr Taverner: I take it your amendment is to the report. The Mayor: Yes, that is so. That a 3d rate was quite sufficient burden for the ratepayers was the contention of Cr Wilson, who added that a 4d rate, in his opinion, would be very unpalatable to the ratepayers. Cr M. C. Henderson said lie intended to vote for the motion. He believed it had been previously stated that if the renewal funds were wiped out altogether, everything would be all right. Cr Taverner had stated that the money in the renewal funds was necessary for providing for wearing out of plant and inefficient plant, but there was also another point to be considered. That was the matter of obsolescence. Unforseen things very often necessitated heavy expenditure, and if there had not been a renewal fund it would have meant the borrowing of money to carry out certain works. He also drew attention to certain expenses in connection with the electric power and light department that could not be reduced either last year or again this. It was quite true that diversions had been made for certain works in the past, but the renewal funds were in a good position then Cr J. M‘CTac said lie looked to those who were against the 4d levy to put forward a proposal as to how the money should be raised. All were opposed to budgeting for a deficit or putting off the staff men. He would suggest that the rates were not actually being raised at all, but that property values were depreciating. Working men were well able to meet the 4d levy, which was necessary because more money was required now to do the same amount of work as formerly. Business men recognised that. CHAIRMAN’S REPLY. In reply, Cr Taverner said that Cr Cameron had stated that the increased rate might not be permanent. All would agree that that was so. He found difficulty in understanding Cr Munro’s attitude. Cr Munro was evidently prepared to go on diverting from the renewal fund. Cr Munro: For this year, at any rate.

Cr Taverner added that Cr Monro made the statement at election time that the finances were being strained to the utmost. The speaker agreed with him at the time. He thought that Cr Munro had been converted, but now he was sorry to discover that he had changed his view. The policy now was to provide employment for the men already referred to. He stated that those

who had made the proposals were reluctant to make an increase, but lie hoped the ratepayers realised that it was actuated by a real desire to help their fellow-men. If the other view had been taken it would be. necessary to reduce the staff, but not to increase the rates. On a show of hands being taken the amendment was lost, and the motion carried by nine votes to two. THE RESOLUTION. Cr Taverner then ’moved the resolution giving note of intention to make and levy rates for the year 1938-39 “ That public notice' be given that the council of the city of Dunedin intends on July 6, 1938, to make the following rates and fee for the year commencing on April 1, 1938, and ending on March 31, 1939; " (a) A general rate of 2s od in the £ upon the value of the rateable property as appearing on the valuation roll for the time being in force in the city of Dunedin. “ (b) A separate rate to be known as the hospital rate of 8d in the £ upon the value of the rateable property as appearing on the valuation roll for the time being in force in the city of Dunedin. “ (c) Water rates as follows:—In respectof the ordinary supply—upon all lands and buildings to which water is supplied the rateable value of which on the valuation roll does not exceed £l2 10s, a rate of 10s; exceeds £l2 10s, a rate of 3J per cent, or 9d in the £ on such value.

Upon all lands and buildings to which water can be, but is,not supplied, situated within 100yds of anv part of the waterworks, and upon all buildings used as stores or warehouses or for any purposes other than as dwelling houses, a rate of one-half of the rates aboyementioned.

“ (d) A sanitation.fee of 38s (id a pan for the removal of night soil on all premises within the city of Dunedin to which such service is given. “ (e) General sewerage rates, in pursuance of a resolution passed by the Dunedin Drainage and Sewerage Board ordering such rates to be made and levied by the Dunedin City Council (1) Upon every sewered property a rate called the general sewerage rate of Is 4d in the £ of the annual rateable value of such property. (2) Upon every unsewered property, save such as are mentioned in paragraph three (3) hereof, a rate of 8d in the £ of the annual rateable value of such property. (3) Upon every unsewered property in the outer drainage area a general drainage rate of 2cl in the £ of the annual rateable value of such property. “ The whole of the aforementioned rates and charge to be payable in one

sum in each case on July 29, 1938: further, that the additional charge or 10 per cent, provided for be imposed upon all, such rates which shall remain unpaid after February 15, 1939, and that public notice be given that the valuation roll is open for inspection by the ratepayers at the Town Hall buildings daily, Saturdays excepted, between the hours of 8.30 a.m. and 4 p.m.”

Cr Munro proposed as an amendment that the general rate be 2s Id. The Mayor: We have already agreed to 2s sd. This is a formal resolution to levy the rate already adopted. The motion was carried. Or Taverner further moved:— .

“That, public notice be given that the Dunedin City Council intends to levy a portion equail to Id in the £ of the special rate of 3d in the £ upon the value of the rateable property as appearing in the valuation roll for the time being in force in the city of Dunedin made and levied for the purpose of providing the interest' and other charges on a loan of £IBO,OOO authorised to be raised for the purpose of augmenting the city water supply by bringing lu the waters of Deep Creek, and that such portion of the said special rate shall be payable in one sura on the date fixed in that behalf by special order '* The motion was carried The Mayor said that while he did not agree with the rates struck, he felt he must refer to the harmony that had existed during the discussion. All were agreed to disagree.

General into Hospital rate Water rale ... Water rate (specDrainage rate ... S. (J. ... •> 1 ... 0 7 ... 0 0 ial) 0 1 ... 1 A 1938-39. s. d. •2 5 0 S 0 9 0 1 1 4 4 10 5 3