OTAHUHU FINANCES

New Zealand Herald, Volume LXXII, Issue 22141, 21 June 1935, Page 14

OTAHUHU FINANCES

INCREASE IN RATES PROBLEMS BEFORE COUNCIL STATEMENT BY THE MAYOR A review of the finances of the Otahuhu Borough Council was made by the Mayor, Mr. C. 1?. Petrie, last night when submitting estimates for the current year. The estimates, said the Mayor, provided for an increase in the general rate of Jd in the pound. It was proposed to earmark the additional revenue for special purposes. It was estimated to produce £'SOO a year. Should the council raise a loan for concreting of footpaths the interest and sinking tund would he met from », the additional revenue and thus obviate increasing the special rates. If no loan was raised this year's additional revenue would be re- ! served and next year a start would be made on footpath construction from this fund. It was hoped to end the year with a smaller overdraft. Assets and Liabilities At the beginning of the financial year the borough's cash assets totalled £27,283, and the liabilities, £30,822, showing an excess of liabilities totalling £3539. The quarry also presented problems and eventually the council's loss would be serious and considerable. The arrears of rate and other revenue totalled £15,626 and the bank overdraft, was £13,241. The collection of rate arrears was a problem which would be dealt with by a special committee. Unemployment relief works bore heavily on the borough finances, said the Mayor, and he estimated the charge on the general fund was £BOO a year. The recent conversion of loans had not resulted in the substantial saving that ratepayers generally had expected. The actual saving on interest was £57 this year. During the last three years the total rate struck had been the same yet the special rates were now bringing in £1653 loss than in 1932. This had been caused through reduced valuations, State property default and redemptions loan provision. Ihe same position was revealed in the general rate and £2OO a 3 r ear was being lopped off through individual ratepayers obtaining reductions in valuations. Iho Mayor said he considered this practice wrong in principle and should be abolished. Essential Works " I am fully confident that wo can restore our finances to a sound basis, but we must, as a council, appreciate the extent of our position and give serious consideration to all proposals for expenditure," continued the Mayor. " We must ensure that only essential works of a permanent nature are sanctioned, and then only within the scope of our income." . , The schedule of estimates showed that the total general rate struck would, on a full collection, yield £4643 and the special rates, £10,321. The gross receipts from all sources, including consolidated rates, were estimated to total £~l,4oiS. The estimates were adopted unanimouslv together with a recommendation bv the Finance Committee that the rates be struck on 75 per cent of the borough valuation. This would be equivalent to a general rate increase of 2-3 d in the pound on the reduced, valuation.