Local Bodies Finance.

Lake Wakatip Mail, Issue 3460, 25 October 1921, Page 5

Local Bodies Finance.

A LEGISLATIVF BRAKE. PROVISIONS OF THE NEW BILE. The Local Bodies Finance Bill contains a series of limiting’ provisions designed to keep the expenditure of bitch bodies within a reasonable distance of their reA'onue. With regard to borrowing on overdraft, such sum owilig to the bank must at aio time exceed two-thirds of the total revenue of the body for the preceding year. Where bodies are running more titan one account with the bank the loverdraft on any such account must t no,t at any lime"exceed two-thirds of the amount payable into that account during the preceding year. No local body is permitted to owe its 'bank at tie end of the financial year a sum greater than the outstanding revenue for that year which remains uncollected. .. Regarding the liabilities ol Jlocan l)odies at March 31. 11W1, each body is required to render to the |Minisfcii' of Internal Affairs before the end; of January next, an account of what it owes to the bank and to lenders ou deposit, together with the amount) of uncollected revenue at thrift date. The difference between the two Mims, termed "antecedent liability,’ I s to be liquidated in the method provided by the Bill. The lx>dy may either .borrow money without a poll of i’atepavers for tliat purpose, or may elect to pay off the sum by seven annum instalments of revenue beginning wii.i the now year. The I*>dy may a.po borrow enough to settle part, of the debt and pay olf Hie balance b> in meats. In the case of payment by instalments. a sjiecial rale may lie shuck to raise the necessary money. The Bill firther reqiiiios loca. oodie.s lo mec. the o’.dmary obligations of each year out of revenue, and where contracts exist extending over a term of years, they must make proper provision each year -for the amount payable under those contracts.