RATES REDUCED

Southland Times, Issue 21729, 15 June 1932, Page 8

RATES REDUCED

TEN PER CENT ESTIMATES BEFORE COUNCIL MAYOR’S MEMORANDUM The estimates for 1932-33 were submitted to the City Council last evening by his Worship the Mayor (Mr John Miller). Not only will last year’s reduction in rates be maintained but there will be a further decrease of 10 per cent. In a memorandum accompanying the estimates his Worship states: — “The estimates were prepared by the standing committees and finally reviewed by the Finance Committee. In framing the estimates due regard was paid to the Council’s direction that economy should be practised. The net result is that the Council will this year be able to maintain last year’s reduction in the rates and still further decrease the amount levied by ten per cent. This represents a substantial saving to our ratepayers at a time when the greatest relief is essential. It is satisfactory that provision was made for each committee to the full extent asked for. I desire here to express my appreciation of the earnest efforts made by ratepayers to pay their rates last year. Over 90 per cent, was collected before the penalty date and a considerable amount has been received since. The further reduction of 10 per cent, rn the rates is made with the full assurance that ratepayers will again recognize their responsibility and pay their rates by the due date. Maturing Loans: The maturing loan obligations which council will have to arrange to meet this year are:

MX? s if! >■ 3 |l| | <y 3 Orw £ O tn 3 2 <D North Invercar- Q gill Nos. 1/3 £11,400 £3,049 1.4.32 Sewerage No. 1 £31,000 £9,814 1.10.32 Public Works £3OO £3OO 1.10.32 Unemployment No. 3 £l,OOO Nil 1.10.32 The loan of £8350 issued for the redemption of North Invercargill Nos. 1/3 loans has been almost fully subscribed. Arrangements have been made to redeem the £3OO Public Works Loan by withdrawing that amount from the sinking fund. The debentures for Sewerage No. 1 loan of £31,000 are domiciled in London. In view of the high rate of exchange on London the possibility of renewing the loan in London was investigated. It appears unlikely that a conversion could be arranged on reasonable terms and it is proposed to raise a redemption loan in New Zealand and pay off the London liability at maturity. Provision has been made in the General Account for paying off £lOOO of the Unemployment Loan No. 3. Debentures: It is anticipated that there will be a ready demand at the ruling rate of interest for the debentures to be issued in respect of the Sewerage No. 1 Redemption Loan of £24,150. Current Loans: Following is a table of current loans showing the purpose of each loan, the amount authorized, the amount issued, the cash on hand and the value of unsold debentures on the Ist of .April, last:

During lasi year Parliamentary authority was obtained to the change of purpose of unrequired balances of loans as under: Public Works 1919 £4147: Special No. 3 £680; South Invercargill, North Ward £184; South Invercargill, Middle Ward £332, £5343. The amount of £5,343 is now known as the Consolidated Loan, 1931. £1,049 was spent last year and the balance of £4,294 is available for expenditure on: The construction and paving of footpaths £3000; the kerbing and channelling of footpaths £750; the drainage of streets £750; and the formation, gravelling or metalling of streets £843. Unemployment Relief: A vote of £BOO has been included in the general account to meet expenses in connection with the relief of unemployment. In the Reserves and Parks Account £7O has been provided for a similar purpose. At the Ist April there was a balance of £2290 available in the No. 3 Unemployment Loan. Other loan moneys which can be utilized for easing the unemployment situation amount to £8,947. There is also an amount of £4OO in a special unemployment relief fund. General Account. The Fire Board levy is £47 less than last year. Provision is made for redeeming £lOOO of the Unemployment Loan No. 3. The Government subsidy on rates is reduced by a further ten per cent. The transfer from the Electricity Account will be only £2,900 as against £5OOO last year. A credit balance of £2OOO at the end of the year is projected. The hospital levy is £249 more than last year. This is due to the alterations in the county valuations. Harbour: The dredging of the berths at the wharf and the construction of the retaining wall from the north side of the wharf and the Otepuni Creek is being financed out of the Dredging Fund. The rents receivable from Harbour endowments are very much less than last year owing to the compulsory reduction of 20 per cent. £B5O has been provided to defray the cost of installing pumps for draining the Otatar reclamation. A new item of expenditure is £lOO for electricity and maintenance of the drainage pumps. Theatre: There will be a considerable loss of rent due to the liquidation of the firm of Messrs Williamson Films (N.Z.) Ltd., who were the hirers of the theatre. The theatre has not been let

for pictures since July last owing to the protracted dispute with the hirers. It is proposed to transfer £797 from the General Account to square the estimated deficit in the theatre account.

Abattoirs: Another instalment of £450 will be paid to the general account in liquidation of the advance made some years ago for the erection of cattle pens. Gasworks: The revenue from the sales of gas and coke are not expected to equal last year’s figures. Capital expenditure on mains, services, meters, etc., to the extent of £895 can be met out of revenue. £5OO will be appropriated to the Depreciation Fund and £2,224 to the Sinking Fund. It is anticipated that the credit balance in the account will be decreased from £4,300 to £2,086. Tramways: Allowance has been made for a further drop in the tramway revenue of £273. The revenue and expenditure are both decreased as a result of the sale of the East Road bus service. Special provision is made for spending £750 on asphalting portions of streets adjoining the tram rails. The expenditure on maintenance of the permanent way is reduced by £750 on account of the recent resolution of the Council making the Works Department responsible for half the cost of maintaining the part of the streets adjoining the rails. The appropriation to the Depreciation Fund is increased by £1,500 to meet the requirements of the Audit Office. The amount to be paid to the fund this year is £2,458 and to the sinking funds £1,353. Interest charges are reduced by £lBO as a consequence of paying off part of the loan capital last year. The estimated deficit, £4,273, will be made good by a transfer from the General Account.

Electricity: The estimates provide for a reduction of 5 per cent, in the charge for electricity for lighting purposes. This will reduce the revenue by £I,GOO. Capital expenditure totalling £3,000 for underground cables, extensions, meters, etc, will be provided out of revenue. The purchase and installation of transformers and switchgear estimated to cost £1,400 will be charged to the Electricity Loan No. 7. The redemption of small electricity loans last year is responsible for reducing the interest bill by £533. The credit balance at the end of the year is estimated at £BB3.

It is proposed to transfer to General Account £7,173 which includes the amount to make good the deficit on the operation of the tramways. The payment of £3,600 to the Southland Electric Power Board in accordance with the agreement made in August, 1930, is provided for. £1,344 will be appropriated to the Depreciation Fund and .£2.259 to the Sinking Fund.

Tepid Baths: It is estimated that the deficit at the end of the year will be £l,lOO apart from interest and sinking fund charges. With the saving in the fuel bill it is hoped to pay £l6O off the. cost of the automatic stoking plant. Reserves: The draw on the General Account for maintenance of reserves and endowments will be £1,279 which is £382 less than last year. The sum of £5O has been allowed for unemployment works under the No. 5 Scheme on the various reserves.

Queen’s Park. The amount required from General Account to make up the deficit on the maintenance of Queen’s Park will be £587. £2O is allowed for unemployment works under the No. 5 Scheme.

Public Library: The rents of practically all of the Library endowments are reduced 20 per cent. This makes it very difficult for the library to carry on without some temporary financial assistance. It is proposed to call on the General Account for £lOO and to carry a debit balance of £2OO which is offset by outstanding rents. Works Department: The expenditure inthe Works Account is £1,869 less than last year. A new item of expenditure is £750 to cover half the cost of repairs to tram tracks. The transfer from General Account will be £lO,OOB.

Quarry: Spawls for the Harbour works are being obtained from the quarry and it is not anticipated that the quarry will be a charge on the General Account this year.

Sewerage: By using the credit balance in the account the rate can be reduced by .36d. this year. Waterworks: On account of the economic conditions, the programme for improving the plant will be suspended this year. The expenditure for the year will be £1,924 less than last year. At the end of the year the account is expected to close with a credit balance of £l,OOO. Motor Spirits Taxation Fund: £2,-' 800 will be applied in meeting part of the interest charges on street loans. £l,OOO will be available for maintenance and construction work on continuations of main highways. It is expected that the account will be £49 in credit at the end of the year.

Fire and Accident Insurance Fund: If a normal year is experienced the Fire and Accident Insurance Fund should benefit to the extent of £275, bringing the fund to £18,997. The fire and accident risks are being carried by the fund this year without premium.

Interest and Sinking Fund Charges: For the first time for many years the charges for interest and sinking fund on loans will be less than the previous year. This steadily mounting charge has at last been stopped as a result of the Council ceasing to raise further loans.

Stamp Duty on Interest: The ten per cent, stamp duty on debenture interest coupons will return the Council £2,314. The stamp duty is not collected on coupons payable on the Ist days of April and May, 1932. Next year the amount receivable from this source will be £4,628. Rating Compared. The following table gives a comparison of the rates levied in 1931-32 and the rates approved for 1932-33.

The adoption of the estimates was moved by the Deputy-Mayor (Cr. C. J. Brodrick), who expressed gratification at the reduction in rates and the relief thereby given to ratepayers. The chairman of the Finance Committee (Cr. H. J. Macalister) seconded the motion, which was carried. It was also decided to strike the rates as set out in the estimates.

Year Amount Amount Cash DebentName of Loan Purpose of Loan Author- • AuthorIssued Available ures ized ized unsold Sewerage No. 1 To finance house installations 2,000 2,000 2557 Endowments Improvements to endowments 1919 2,500 2,500 214 Purchase of leaseholders’ 1,500 1,500 interest in endowments Reclamation No. 3 Construction of bank along Waihopai River 1920 1,500 1,500 1352 Special No. 3 Reclamation 1912 52.000 52,000 466 Street Works 317 Lindisfarne Public Works 6,000 6.000 27 Streets Supp. Street Works 1924 7.400 7,400 729 Public Works Street Works 1919 29,760 24.460 1154 2,153 Water Retie. Water reticulation 32,000 32.000 298 Elec. No. 7 Elec. Works 1920 50,000 50,000 1606 Tramway No. 5 Improvement and extension tramway etc., 1919 50,000 33,750 595 16,250 Streets formation sup. Streets improvement 1927 6,000 6,000 274 South Area Water and Sewerage 1928 62.500 50,400 1741 12,100 Consolidated 1931 Streets, etc.. 1931 5,343 2.196 1146 3,147 Unemployment No. 3 Unemployment Relief 1931 5,000 4,750 2040 250 £313,503 £274,956 £14,516 £35,400

Rate—Amount in the pound 1931-32 1932-33 Reduction Rate Basis of Rating. d. d. <1. General Unimproved 3.09 2.38 .61 Special 6.29 6.1 .19 Street Lighting " .18 .15 .03 Sewerage " .65 .29 .36 Water Consumers ” Nil. .4 .4 inc Water Non-consurn-ers ” Nil .2 .2 inc A comparison of the amounts collectable is as follows:Collectable 1931-32 1932-33 Reduction £ £ £ 19.4G7 14,912 4,555 40,013 38,430 1,583 1,145 945 200 4,135 1,827 2,308 Nil 2,164 2,164 increase £64,760 £58,278 £6,482