AMALGAMATION SCHEME

New Zealand Herald, Volume LXIX, Issue 21117, 26 February 1932, Page 10

AMALGAMATION SCHEME

CITY AND TWO SUBURBS.

NO INCREASE IN RATES. FINANCES OF MOUNT EDEN. No support from otlior councillors was received by Mr. D. Donaldson, when, in accordance with notice previously given, lio moved at the meeting of the City Council last evening that the resolutions adopted in respect of tho proposed amalgamation of the boroughs of Mount Eden and Mount Albert with the city be rescinded and that the question of amalgamation be again considered two years hence. The occasion was taken by the Mayor, Mr. G. W. Hutchison, to answer a number of statements, adverse to the amalgamation proposal, made mainly by correspondents to the newspapers. Mr. Donaldson said these amalgamations wotdd result in substantially increasing the burden of the city ratepayers, and in view of tho uncertainty of the economic position, and the fact that tho council had received no mandate to incur this added responsibility, the offor to the two boroughs should be withdrawn. Danger of Default. Tho Mayor said 110 previous proposal for amalgamation had been given so much consideration by the City Council as this one. Ho disposed of the suggestion that the city rates would increase as tho result, of amalgamation by saying that by allowing for tho payment of Mount Eden's sinking fund indebtedness of £11,938, tho Mount Eden rate would be 83d higher than that of tho city, but if this sinking fund charge were spread over tlio combined city and Mount Eden valuation tho rate would be ,926 d. Against this Mount Eden's new valuation produced £I9OO more rates, and the estimated saving in administration of £4IOO reduced the sinking fund liability to £5938, or ,45d on tho combined annual values.

Last year Mount Eden had not paid its sinking fund, and while it had been said that it had legal authority for withholding these payments, this was not so. In other words Mount Eden had defaulted. If tho local bodies around tho city defaulted a serious position would arise, and if this happened the city would be compelled to tako over tho contiguous areas. 110 also referred to the attempt made to embarrass tho city in regard to its costly water supply system by the endeavour made to form a water board. No more uneconomic proposal had ever been made. Loan Indebtedness. The Mount Eden loan indebtedness had increased in the last nin 0 years from £ls 10s per capita to £37.45 per capita, while tho city loan indebtedness decreased during tho same period from £50.92 to £39.75 per capita. v Loans authorised and not raised in Mount Eden amounted to £83.800. but one of tho conditions of amalgamation was that they would not undertake to go on with these loans until they could do so without embarrassment. Mount Albert had raised practically no opposition to the proposals, hut if Mount Albert carried its noil and that in Mount Eden was defeated they would not be precluded from further considering the question. He proposed to ask the council to review the position when tho accounts at March 31 were available, in the event of Mount Eden deciding against amalgamation. The motion was defeated, Mr. Donaldson alone voting for it.