MOUNT EDEN RATES.

New Zealand Herald, Volume LXVII, Issue 20580, 3 June 1930, Page 10

MOUNT EDEN RATES.

SUGGESTION OF INCREASE.

FURTHER CONSIDERATION.

REVIEW OF THE POSITION. Tho estimates of tho borough of Mount Eden and tho necessary rates were again considered at a special meeting of tho council last evening. It is suggested that to meet expenditure a rato will bo required of 4s 2d, an incrcaso of 3d over the present rale. It was decided after considerable discussion to refer the matter to a sub committee for further consideration with a view to seeing whether any reduction in expenditure is possible. Iu a review of tho general piogress of the borough and tho estimates of expenditure tho Mayor, Mr. E. H. Potter, said the progress of tho borough had been fully maintained during tho past three years. Tho works carried out were tho construction of drains and sewers and tho laying down of roads in permanent material. From £25,000 to £30,000 a year had been spent iu tho construction of sowers—mainly combined sewers to carry houso draiuago atul surface water. This had dealt with areas which had given tho council and tho Health Department much concern. These were the old tram terminus at Dominion Road, tho area in tho vicinity of Maungawhau School, and tho area on Iho western sido of Dominion Road, on which there were two schools. This work had proved very expensive owing to tho naturo of the country and because of tho greater sizo of the sewers required by tho combined system, but it had served tho purpose of averting a menaco to health. Permanent Road Work. " Tho work on the roads consisted of permanent formation and surfacing to mako them fit to carry tho motor traffic," said Mr. Potter. " 'i'lio work has been well dono and will requiro nothing beyond trifling maintenance until somo new method of transport is discovered. Hie completion of the major work of the borough will necessitato a reduction of tho number of men employed, which I much regret as our staff was very competent. " Tho work which has been carried out has involved tho council iu additional expenditure for interest and sinking fund. It was anticipated that the valuations from now buildings would have gone far to meet this call, but the great falling off in the building trade has disappointed this expectation. The extension of tho tramline on Dominion Road and tho proposed extension on Mount Eden Road should start building activity again and provide us with increased revenue to meet the commitments. " There are other items of expenditure over which tho council has no control, such as the levy for tho Hospital Board, which has increased by £592 this year, and tho levy for the Museum of £478, which is a recent cliargo on local bodies. Government departments have taken possession of several properties mortgaged to them and refuse to recognise any liability either for arrears of rates or for current rates, and this, of course, throws increased liability on other ratepayers. _ " I estimate that considerable saving can be made by continuing the policy of putting down roads and footpaths in permanent" material. An application has beeu made to the Loans Board for authoiity to submit a loan to the ratepayers, and an expenditure of £SOOO during tho first year of the loan would ftiean a rate of one-third of a penny in the pound, whereas the same sum spent from revenue would involve a rate of nearly fourpenco in the pound. The rates in the future must depend largely upon the obtaining of a loan in order to carry on permanent work." Sound Position of Borough. In borrowing money tho council had pursued a fixed policy, said Mr. Potter. A sum of £336,500 had been* spent on drainage, £35,200 on water supply and about £200,000 was spent on the formation of x'oads with metalled surface, iho advent of motor traffic made it necessary to spend a similar amount of £200,000 to provide a permanent surface. . A total of £840,000 had been borrowed by tho borough on which the net indebtedness to-day was £741.000. By the expenditure of this motley the greater part of tho borough has been, put iu good order. ■ The position of the borough was particularly sound. Tho total net indebtedness pi £741,000 was per cent, on tho capital value, a percentage lower than that of most boroughs. Substantial contributions were made anuallv to sinking funds, which now amounted to £60,000, ami Government loans were reduced each year by repayment of capital. "We have carried out tho greater part of our heavy work, and are more advanced than most districts." Mr. Potter concluded. "In view of this tho rates cannot be considered high. Mount Eden has been commended many times for its policy of progress, and it is our duty to seo that the values which have been established are not allowed to diminish by any neglect iu maintaining the standard that now exists.

The present rate of 3s lid in Mount Eden is subject to a discount of 2j per cent., which would also apply to tlio proposed increase. During tlio past .16 years loan works have been carried out in the borough providing work for men other than those of tho permanent ;;taff. in the past 34 men have been engaged, but the finish of the principal works will involve, a reduction in tho number. Tlio council has two loan proposals before tho Loans Hoard at (he present time, one for drainage and sewerage, and the other fur Iho permanent surfacing of roads and footpaths. Should these lie approved by tlio board ajid (lie ratepayers it will In; possible (o re engage Ihe men to iio discharged. The .loans will cover a period of about four years' expenditure.