COUNTY FINANCE.

Gisborne Times, Volume XXV, Issue 2194, 25 September 1907, Page 1

COUNTY FINANCE.

A LEGAL OPINION. Following is the summary of the legal opinion on the finance of tho County Council got by Mr. W. D. Lysnar from Mr. H. D.. Bell: (I.) Tho County can, and indeed ought to, levy a uniform general rate so far as is necessary to provide its general expenditure, including its expenditure upon county roac[s, county pridges, and district bridges, and it is only where the county finds that an appreciably greater expenditure is required upon special works in any riding that the Council ought to differentiate the rate. (2.) It is not' within the power of the Council to differentiate the rate for the purpose of casting upon a riding now in debit according to the accounts of the Council a greater burden than is borne by the ridings now in credit according to the accounts of the Council; for fa) these accounts are entirely incorrect, having been made upon an incorrect basis, and (b) no express power seems to be given by the Act to differentiate for that purpose. (3). The Council should have these “roads which it treats as county roads declared to bo county- roads, so that no question may arise as to the expenditure thereon. It may itself declare such roads to be county roads under section 104, or tho Governor may declare such roads to be county roads under section 103 of the Public Works Act, 1905. It is desirable to avoid any possible question as to the legality of the expenditure by the Council of its fund upon roads which are not clearly county roads. (4.) The separate accounts hitherto kept by the Council under section 146 have been kept upon an entirely erroneous basis. Some attempt ought to be made to readjust the accounts, so as to ascertain the correct balance upon the true basis.

(5.) If the overdraft of tho Council has accumulated year by year, and if in each year tho Council has expended the wholo of its incomo, ..after payment of office expenses and charitable aid, upon 1 county roads, county bridges; ferries; and district bridges: there has been no money in any yoar apportionablo under subsection 4 of section 145, and therefore in such criso tho separate account’of each riding would show no .apportionment to a riding-of "any moncy'in any year which could' bo 'expended upon works specially fOr i tho ' benefit of such’ ridiiftv, and therefore no riding would be in debit and no riding in credit. (6.) It would appear that tho payment or reduction of overdraft may properly be made tho subject matter of a gonornl rate under subsection 1 of section 145.