SOUK RITES.

Manawatu Times, Volume XLVII, Issue 2715, 7 August 1923, Page 4

SOUK RITES.

mayor states the reason WHY. THIS YEAR’S SPECIAL RATE INCREASES £6OOO. INTEREST ON ELECTRIC LOAN. An illuminating statement was made by the Mayor, Mr. F. J. Nathan, at the Borough Chambers last evening' when he submitted a report setting out the position with .regard to the Increase in the special rate for the year 1923--4, and the reason for this additional impost on the ratepayers, which is entirely on account of the interest having to be paid out of rates on electric light loan. “ It was explained to the public last April,” said His Worship, ’• that the general rate for the year 1922-23 was struck at 2d. in the £, which would

produce £18,542 which was an increase of £2,472 over the previous year, and it was explained that, although the rate was id. in the £ less than it was in 1921-22, ratepayers were paying nearly £2500 more than they paid the previous year in general rates. It was also stated that it would be impossible to carry on the business of the Borough on account of the commitments of the past Council, unless we levied a general rate estimated to produce

£18,540 the same as during the previous year. It was further explained that the special rate in 1021-22 was collected to the amount of £IO,BBI and the rate collected in 1a22-23 totalled * £10,571

and it was also stated that additional special rates would have to be collected to meet the interest and sinking fund in respect of loans for 1923-24, the first year’s charges of which were paid out of loan account, and for this purpose an additional sum of £6OOO has had to be provided by the ratepayers.

“ The special rate account this year 1923-24, has increased for the reason that the interest on the electric light loan was, during the year 1922-23, paid out of the loan, but that this year 1923-24, It would have to be paid out of rates. The law does not allow us to pay interest out of loans for a longer period than the first year. Therefore, we must collect this year from the ratepayers special rates totalling £22,500 in lieu of £10,571 collected the previous year. There has been no increase of rates beyond this, and the increase is entirely on account of the interest having to be paid out of rates on the electric light loan. “ The present Council is in no way responsible for this increase in rates. It is something entirely beyond its control. A new Council is bound by the commitments of past Councils, and the present Council found itself in the position of having to find the money to pay the commitments of the past Councils.”