CITY RATES

New Zealand Herald, Volume LXXVIII, Issue 23996, 20 June 1941, Page 6

CITY RATES

NO CHANGE MADE

MAYOR GIVES REASONS

INCREASES IN COSTS

VOTES CUT £5*0,000

The financial statement and estimates for 1911-12, presented to the Auckland City Council last night by the Mayor, Mr. J. A. C. Allum, ami adopted by the council, leave the municipal rates at the same figure ns for the preceding year, -Is IJd in the pound, although changes are made in component items. The water rates are unaltered. Details of rates for the two years are as follows; 101 1-12 11)10-11 Account s. d. r. d. Or in rn I . . 1 111 111 Library 1" 4 1! Hospital .. u'-'j interest .. 1 1 7 Total .. 1 I'; -1 Water rates, both years: 4} per cent, on lands and dwellings; 2J per cent on other buildings. Two Years Compared Reasons why, in his opinion, a reduction in rates for the current, year was ■impracticable, were given hv the Mayor in presenting the estimates "No alteration in last year's municipal rates of -Is IJd in the pound or in the water rate of <IJ per cent for lands and dwellings .and 21 per cent for other buildings is proposed," said the Mayor. "On this basis, a balanced budget is provided for in the case of the combined rating accounts—the general, library, hospital and interest accounts —and an anticipated credit balance at March 31 next in the water account of £5163.

"With all the facts before me, there are a few brief, cogent, remarks which T should like to make, bearing particularly on tho position the council finds itself in compared with that which obtained when last year's budget was framed. The council has the advantage of an opening credit balance in the

! rating accounts of £22.631, which, however, is much less than the credit balance of £'38,230 available! when the 1940-1911 estimates were prepared. "Outstanding rates are now less than at any time in the past: 17 years. On April 1, 1940, the arrears of municipal rates outstanding were £32,418, while at the commencement of . the present financial year the amount is £15.917. There is consequently a materially diminished revenue yield from this source Increases in Costs "I am bound also to remind councillors that substantially increased costs, both in wages and salaries and in materials, have taken place since the 1940-1941 budget was framed. For example, salaries have increased by 5 per cent, wages 9 per cent, building sand 28 per cent, scoria 20 per cent, bitumen, 14 per cent, and cartage 7 per cent. These references are only to increases in costs which have occurred since the 1910-1941 budget was adopted by the council, and of course represent part only of the increases which the council has had to bear, in common with the community in general, since tho outbreak of war. "The council receives this year the benefit of a diminished hospital levy. Actually, the city benefits in a somewhat greater ratio than some of the contributing local bodies, for tho reason that the reduction in the Government capital value of the city effective this year is also reflected in the allocation. The council's levy is reduced by £6148 from £79,909 to £73,821. On the other hand, the levies of the Fire Board and the Drainage Board have been increased. "The annual valuation of the city, due principally to new buildings, has increased by £81,334, estimated to produce additional municipal rates of C 10.267. It must lie borne in mind, however, that new buildings involve further charge> lor services. Revision of Expenditure "Notwithstanding this additional revenue from fresh valuations, the reduction in the hospital levy, and the opening credit balance available, the increased costs which the council has to meet so far outweigh these_ items that there would have been, in my view, justification for an increase in rates.

"But th.ese are times when every possible saving should be made in expenditure, consistent with reasonably preserving the city's assets and eschewing a penny wise pound foolish policy. I therefore have undertaken the responsibility of heavily revising the estimated departmental expenditure as submitted to me and have made reductions. totalling C3G.000. Even so. the substantially increased costs of wages and materials, as already referred to. have bad to be provided for.

"To make any reduction in the charges on ratepayers would, in the circumstances outlined, involve dismissal of employees, elimination of all new works, and further reduction of maintenance beyond the margin dictated by prudence and common sense." Summary of the Position

The position in which the council now considered this hwlgftt and determined the amount of the rates to be levied. compared with thrt, which obtained 12 months ago, the Mayor said, might be summarised as follows: ft Kirn amounts In he taken rarr of this year. Redact inn openincr credit balance, 11 diminished revenue available from ralr arrrnrs. Cir»,Bf»rt; increased salaries, increased unites, i* ir>,ooo; waKos of approximately To men whose employment is necessitated by withdrawal of some "lilO subsidised men. .CIS.00(1: increased eost of materials and eontraets. ronservativelv estimated. .(.'11.000; charges on new loans. CI 170; increased Fire Hoard levy. increased Drainace Board levy, C'2o2 Total LSO.T'iO.

Less Amounts Available This Year.- Redaction in hospital levy, .0(11 tSi; estimated additional rales from increased valuations, e I(i.'JOT, Total, C2'_>.'tir». This left an extra i/r.s,l.

"This in itself is equivalent to a rate (if IJd in the pound." the Mayor continued "The task of the council is primarily, therefore, one of avoiding an increase in rates. This has been achieved. The Finance Committee concurs with the proposals, and 1 accordingly recommend the adoption of the estimates for 19'11-12 as now sub mit ted." Procedure Defended Replying to a comment that councillors had been presented with the estimates only that evening, and had not had time to consider them in detail, the Mayor said that as the council had been so recently elected it had not been practicable to submit the draft estimates to the various standing committees, but this would certainly be done next, year. A special meeting would be held on July I to strike the rates, Mr. Allum continued. If councillors had any proposals to make, they could be considered then, and the fact that the estimates had been approved would not tie the council's hands. The motion approving the report and estimates was carried without dissent.