HIGHER RATES?

Sun (Auckland), Volume IV, Issue 986, 31 May 1930, Page 6

HIGHER RATES?

POSSIBLE INCREASE IN MOUNT EDEN “UNFORTUNATE RUMOURS” That the * circulation of rumours of increased rates before the council had had time to consider the estimates was unfortunate, was the opinion of Mr. E. H. Potter, Mayor ot Mount Eden, in commenting yesterday on the present state of the borough finances. Though the council would be faced this year with heavy expenditure, ii was possible that it might be able to meet the increased drain and reduce expenditure in other directions. The estimates ot revenue and expenditure were being considered by members of the council, said Mr. Potter. They were faced with an increase of. £587 in the hospital levy and had to make provision for the first time for the borough quota to the museum expenditure, amounting to £478. Drainage payments had previously been made out of loans ; the work being in the constructional stages, but owing to the changed methods of the Local Government Loans Board these payments would now have to be provided out of the rates. These three items together would mean an additional rate of 3d, and the manner of levying it would have to be considered by the council at its next meeting. Drainage in the interests of public health, for roads and for footpaths was also required. Should the council decide to spend £5,000 a year there would be a rate of one-third of a penny provided the expenditure were made from loan; but if it were made from revenue the cost to the ratepayers would be threepence in the pound for every £4,000 spent. As this was a class of w r ork which would last for 20 years the expenditure should be made from loan, said Mr. Potter. The drainage work had been a big undertaking. The cost was tremendous, as the boring had to be done through solid rock. The borough suffered severely when houses were not being built, as this meant a loss of revenue. The extensions in the Balmoral Road area and the area near the Maungawhau School were nearing completion, and the cost had been high, but it was not a recurring one. The triennial valuation of the borough would be carried out this year, and those properties which showed a decrease would be offset by those showing an increase, making little difference in the total. The question of the method of gaining the necessary increase will be decided at the adjourned meeting of the council which will be held on Monday.