OTAKI BOROUGH.

Horowhenua Chronicle, 21 September 1928, Page 7

OTAKI BOROUGH.

NATIVE RA.TES : THE COMMISSION’S FINDING.' • ■ • ’rf „ No. 11., . ,A t.X* : The full text, of 'the /report' : of- the teceut v Otaki ■ Borough. •' ''Cqnfmissioii’ is. :now available, and, apart from the general questions involved regarding rating, on farm 1 lands in Boroughs, it ideals with Otaki’s special problems very, critically. Summed up the Commission’s recommendations are as follows:’’ ... - (1) That the sewerage and water v.schemes were far :in excess of requirements. - , (2) That all lantls excluded since *- ;192f be re-included subject to diassification andi differential rating. (3) That the Borough Council’s offer -to Accept a cash payment *of 25 per "cent (£861) from the Government to wipe out outstand- , ing native rates (£3444) be adopted. (4) That all native land not by the owners be vested an the Ikaroa Maori Land Board. (5) That the Board of Heialth require the Borough Council to complete the sewerage scheme and if they, neglect the Board to do so at thfi Borough’s cost. (6) That the Borough be classified into three classes and rated according to the benefits received. In view of the general interest in ilie enquiry the text the report will be published in the Chronicle in sections daily until complete. The first part dealing with the water and sewerage schemes/ and the excluded lands wag published yesterday. The second .section refers to native rates and sewerage and is as follows: - It will be obvious that any such scheme of adjustment requires to be -approached with care, and can only be edncluded .after computations which involve great detail and which;' if perfection of application is to be obtained, should extend-to every assessment in the borough. NATIVE RATES UNPAID. 1 Moreover, before proceeding -to examine or recommend a scheme of adjustment of the incidence of rating, it is necessary to explain and desirable , t if possible to .dispose of two matters — viz., (a) Native rates, (b) sewerage works —which have materially complicated the issue. (a) Native rates.—The difficulties of the borough have been increased by . the non-payment of Native rates. Native properties comprise roughly one-sixth in rateable value of the lands at present in the borough, - and should therefore, under: the present system of rating, contribute approximately onesixth of the total hates levied. The Amount collected from the Natives during the past five years was approximately one-fifth of their full contribution. The sum of £3,444, os 5d is accepted by the Borough Council, and by Mr. G. P. Shepherd for the Native Department, as the total sura .outstanding in respect of all unpaid Native rates as at 31st March, -1928, including the 10 per cent, penalty. imposed during the period of the- existence of the borough and the Town- Board. , GOVERNMENT TO- PAY 25 PER ' CENT. After considerable discussion, in which the Commissioners participated, the Borough Council, by resolution dated 24th May, 1928, recorded its willingness “to accept a cash payment equal to 25 per cent, of the total Na- . five rates of £3,444 5s 5d owing as at :31st March,-1928, plus all costs incurred by the Council to date in connection with liens and applications, in full settlement of all Native rates owing up to 31/3/28, provided the Native Department proceeds with a scheme to vest all Native land not occupied . by the owners in the Maori Land Board, with wide powers of administration and alienation,_ the revenue to be applied in payment of all future rates. Rates collected between .now and date of concluded agreement to be retained by the Council and deducted from £3,444 5s sd, and the 25 per cent, assessed on the net balance outstanding as at date of concluded agreement.’’ * * - Your Commissioners generally approve of the scheme of settlement embodied in the foregoing resolution. It is well known that the question of payment of Native rates is one which has .given concern to a considerable number of local bodies in the North Island of New Zealand, and in certain have been arrived at with |a degree of equity to the local 'bodies, accompanied by some recognition Of the extraordinary position which Native lands have in the past occupied in regard to rating. Your Commissioners are informed by the Native Departfxneat! that the counties of Kawhia, ■Waitbmo, Bay of Islands, Taumarunui, ■and Whangarei, and the Kaikohe Town Hoard,' have settled for outstanding -rates; on. a basis not exceeding 25 per, cent. The following table shows the ■position of unpaid Native rates in the ‘(Case of Otaki; — ' Otaki Town Board: . ? • - t ; 9 d 1/4/13--31/3/20 .... 436 ISi 4 4920-21 ..•... ..... •.. M 7 5 Otaki Borough Council: . • v 1921-22 13S O 10 ' 1923-24 , ITX 3 4 ........... 293 1 10 ......869 16 2 : V ' / £3309 13 6 ... Add-lO p«r cent penalty, , ■ • _;#(»■ Overdue;raids 234- .-j5...-4*.. -■ t 23444 , .5, 9, flhrenty-five per cent of -'//>■ this'amount ... £B6l 1 4 jft will be acted thaithe above edm* natation includes all Native rates pilot ■ |p 1924-23, •< and therefore atatutedjarunless, protected by liens or joagThe Commissioners therefore-. mmend, subject as appears in .tiSdf next aaeeeeding paragraph, a cash'- payment - -1» the Otaki Borough Council by . the * of £B6l 1# id, or 25 per . «t»t of all Native rates outstanding as

/on basis, set out,in the abgve tajble. -Inasmuch as the sum "of £l2olls Bd, ,e.o%ts ; . v and 'been incurred by Council to date incidental to Native-rate liens, the Commissionqis are’of opinion that some allowance ought to be made, in f this respect, ahd recommend ' accordingly. Any payraentS'ihade pursuant to the •re* 'commendations . contained in this, present;.paragraph in full sat.is'ftaction of ;all claims and demands whatsoever by the Borough in respect of rates owing by , or outstanding from Native on Native lands as on 31st March, 1928. ' v Your Commissioners recommend that, should the Otaki Borough Council collect any rates between 31st March, 1928, : and the date of a concluded agreement between the Government and:the borough, the■.<borough should be pertnitted to retain the amounts so collected, which should in.that event be deleted from the total sum of '£3444 5s 5d referred to above, and payment be made, as set, forth in the foregoing paragraph, of 25 per cent of the net balance outstanding, plus such amount of costs and disbursements in respect of liens as may be further allowed in that behalf. MAORI LAND BOARD TO MAKE , . CHARGE. Your Commissioners also recommend that-all, Native lands in the borough not occupied by the owners be vested in the Ikaroa District Maori Land Board for administration, with powers of' sale by public auction or private contract, leasing, accepting surrender of leases, and licensing, and power to apply the proceeds, in the first place, in payment of outgoings, including rates, subject to such exemption from rating as Your Excellency in Council may think fit to order pursuant to the provisions of section 104 of the Rating Act, 1925. If legislation is required to give effect to,the foregoing recommendations, your Commissioners advise such legislation. HISTORY OF INOPERATIVE SEWERAGE SCHEME. (b) Sewerage works.—The difficulties of the borough have been further increased by the unsatisfactory state of the sewerage works undertaken by it, and by the Borough's noncompliance with the Board of Health’s requisition referred to in Your Excellency’s Commission. On 21s‘t December, 1921, the Otaki Borouglh Council obtained (authority by vote of the ratepayers to borrow the :sum of £14,000 for sewerage, which they proceeded to do by special loan secured by a rate over the whole area of the borough. This loan was procured from the Public Service Superannuation Board, for whom the Public Trustee acted as agent, in 1923. It appears from the evidence (Schedule A, pp. 85, 117) that a procuration fee of half per cent was paid by the borough in respect of this loan, and from a letter dated sth June,. 1928, from the Public Trustee (Schedule B) that such payment by the borough was in direct contravention of the conditions of the loan. The first sewerage scheme was 'submitted by Mr. F. G. Davies, then acting as Town Clerk and Treasurer as well as engineer, and the Council decided to adopt it. Considerable amounts were thereupon expended for material. The Council then appears to have had, doubts as to the soundness of the scheme, and they consulted Messrs and Gilmour, engineers, Palmerston North, who prepared a new scheme, which provided for a much larger population than that submitted by Mr. Davies. In 1924 the Otaki Borough proceeded to put into operation the scheme as prepared by Messrs Jickell and Gilmour. On 24th February, 1925, the Town Clerk wrote to the Health Department stating that, owing to unforeseen difficulties, it had been found impossible to complete the scheme within* the original estimate. By this time £11,500 of the £14,000 loan had been expended. The history and the present position of the scheme are set out in the opening of Mr. C. F. Atmore (Schedule A, p. 28) and in the evidence of Dr. R. A. Shore, (Schedule A, p. 15). It will be noted that some £3OOO was absolutely wasted in the Te Rauparaha Street section of the work, that the scheme is at present incomplete, and that it has never been in any measure operative. SEWERAGE MUST BE COMPLETED At the request of the Commissioners, Mr. A. lx. Bush, engineer to the Lower Hutt Borough, inspected portions of the drains laid in sections other than the Te Rauparaha Street section, which had previously been condemned by Mr. J. Hannah, Public Works Engineer (vide Schedule A, p. 15, and Appendix D). Mr. Bush’s report is attached ‘(Schedule C). \ ' Following on Mr. ißush’s report, the Commissioners have no hesitation In re-* commending that full effect should be given to the requisition, of the Board df Health for the completion of a sewerage system in the more thickly populated area of the borough. The Commissioners further recommend that, should the borough refuse or neglect to carry out such requisition, the Board of ■ Health should invoke the powers as to completion of the work and recovery of thA cost set forth in section 143 of the Health Act, 1920, or any other statutory authority, in that behalf. HAVE BEEN SPECIAL BATING AREA. Your Commissioners have given full consideration to the incidence of rating within the existing area of the borough and the areas excluded from the borough since its original constitution, and they are of opinion—(1) That, as. hereinbefore stated, a special area should have been created for the purpose of rating in such area to meet charges in respect of loans in connection with the borough’s sewerage scheme; (2) that the general and water rates payable by occupiers of lands exclusively used for primary production, purposes are excessive to such an'extent as to place undue hardship on such occupiers. Tour Commissioners therefore recommend that, in order to secure an adequate measure of relief, in respect of loans in connection with the* borough’a sewerage scheme, to; the owners of farm lands now or formerly in the borough, the following adjustment of the incidence of. rating should bo tiade, subject to the classification hereinafter set forth;— (a) The coat of completing a modi-

lied sewerage scheme in accordance with the requirements of the Board of Health should, subject to the said classification, be met by a special rate on the area to be served-by such completed scheme. (b) After deducting the proceeds of the special rate referred to in paragraph (c) hereof, the balance required to meet the charges for interest and sinking fund in respect of the loan raised in connection with the original sewerage scheme shall, subject to tht said classification, be met by a special rate on the area proposed to be served by such scheme. (Attached hereto (Schedule D) is a blue-print of the Original sewerage schemoj supplied to the Commission .by Mr. A, Wilson, Town Clerk of the borough). WHOLE BOROUGH TO PAY SOMETHING. (cj A special sewerage . rate of p;l in the £1 be made and levied, subject to the said classification, on the unimproved value of all rateable-lands within'the area of the borough, including therein the lands now excluded-but commended herein for inclusion. As the operation of a sewerage scheme will indirectly benefit - the whole of the lands of the borough, your Commissioners are of opinion, notwithstanding the fact that a special-rating area should have been set up, that a small proportion of the cost of the sewerage scheme should be a charge on all the lands of ■the borough. EXCESSIVE WATER RATES. Your Commissioners attach a table (.Schedule E) showing the rates which would be levied on the farm lands within the original borough area on values prior to certain special valuations of farm lands recently made, together with comparative tables showing the rates which would be paid under other circumstances, and an estimate of rates which will be payable under the scheme now recommended by your Commissioners. This table, your Commissioners submit, shows the necessity for the relief which they recommend should be given to the occupiers of farm lands within the original borough area. To quote an example in connection with the water rates only, the charge for water on the farm property occupied by A. J. Fogden, and originally valued at £3570, equalled £53 6s. The area of this property is 49i acres. A water rate of £53 6s on a farm property of 49i acres is,-.in the opinion of your Commissioners, excessive. Your Commissioners arc, however, of opinion that the whole of the original borough lands should, subject to tho said classification, be rated on the unimproved value for water purposes, provided that the incidence is also adjusted in some proportion to service. They therefore recommend that the charges for water maintenance and loans should be met by a flat rate of £2 per annum for the land included in each assessment appearing in the district valuation roll for the time being in respect of the original borough area; or in any case where there is on the land included in such assessment more than one building usually occupied as a dwelling or business premises, then a flat rate of £2 per annum for every such building; and, your Commissioners being of opinion that the availability of an adequate supply of water is of benefit to the whole of the bor}ougfy .they {further recommend that the balance of the sum required to meet these charges should, subject to the said classification, be raised by such rate as is necessary for this purpose on the unimproved value of all rateable property in the original borough area. THE CLASSIFICATION. In order to secure the measure of relief which your Commissioners consider necessary and advisable, they have divided into the three following classes the whole of the lands in the original Borough area; Class A: Building land. —i,e., land suitable for building purposes and having a frontage to a road or street. Class B: Potential building land.i.e., land having a potential building value, and other than the land included in Class A. - Class C: Farm land.—i.e., land used for farm purposes and, not suitable for building purposes. The whole of the borough rates—-viz., general rates, street lighting" rate, Hospital Board rate, antecedent-liability loan rate, bridges and culverts loan rate, as well as the special rates in respect of sewerage and water, and the special rates over special areasshould, in the opinion of your Commissioners, be levied in the proportions set out in the following scale:—Class A, 100-255; Class B, 85-255; Class C, 70-255; which is to say that for every £IOO levied on land in Class A £BS shall be.levied on land of equal unimproved value in Class B and £7O on land of equal unimproved value in Class C. Your Commissioners have inspected the whole of the lands within the original borough, area, and have classified them in accordance with the Yoregoing recommendations. A plan is attached (Schedule F) showing full details of such classification. Your Commissioners recommend that a classification list shall be prepared from the rate-book of theuborough by the Town Clerk in accordance with the plan. (Schedule F) for signature by the Commissioners; that thereafter the Borough. Council should cause to be given public' notice of such classification and of the place where the list may be inspected during office hours for a period of twenty-one days; that •any owner or occupier who thinkadura*' self aggrieved jt>y such classification should have the right to appeal against the same; on the ground that the land owned or occupied by him has. not been fairly classified'.according to the classes, hereinbefore defined by your Commissioners, in such manner and to such person or persons as may be determined by Your Excellency ; and that the Borough Council may in like manner and to like person or persons appeal on• the ground that any land kaa, not been fairly classified according to the said classes. Such legislation as ia necessary to, fire effect to the foregoing recommendation is also recommended by your Commissioners. Any such legislation should contain provisions: (a) That tho adjustment of the incidence of rating and classification hereinbefore recommended- shall ■ not in any way affeot the security of the lender; , ' (b) That any re-elassificaition here-

under, either generally or for any special purpose, shall be carried out as and when necessary by such person or persons and in such manner as Your Excellency may from time to time determine ; (c) That, in reference to classification, the maximum, rate prescribed by the Municipal Corporations Act, 1920, shall not be deemed to be exceeded if the proceeds from the rates levied would not exceed the derivable from the maximum rate, on a uniform scale levied on all the rateable property in the borough, notwithstanding that the rate actually levied on the lands comprised in any class may exceed the prescribed maximum rate.