TOWN RATES TO BE LOWER

Taranaki Daily News, 30 January 1934, Page 9

TOWN RATES TO BE LOWER

BOROUGH OF NEW PLYMOUTH FIVE-EIGHTHS PENNY REDUCTION. SECOND CONSECUTIVE DECREASE. SUBSIDIES AND- OTHER PAYMENTS. Including a smaller Harbour Board rate, a reduction of five-eighths of a penny in the pound in the rates for the borough of New Plymouth for the year to' end on March 31, 1935, was approved by the Borough Council last night. Added to the reduction of 1 l-8d in the £1 in the rates struck for the current financial year compared with those for the previous 12 months, this means that the rates have been reduced by lijd in two years, and that the council will in the ensiling year levy something like £13,500 less in rates than was levied for the year ended March 31, 1933. The sum estimated for collection under the rate approved is £40,054, compared with £40,61? during the current year. ’ In a' statement upon the subject the Mayor; (Mr. E. R. C. Gilmour) recalled that when the. estimates for the current year were submitted by his predecessor a year ago Mr. Griffiths had made the following comment:—“ln view of the great burden now being carried by the ratepayers generally in the way of taxation and reduced incomes, I have approached the estimates with the view that I know is also held by every councillor, that whatever the difficulties in the way the total rates collected by the borough for the. ensuing year, inclusive of the amount collected for the Harbour Board,; must be decreased.” With that view, said Mr. Gilmour, he was, and still was, in complete accord. He felt that it applied with equal force to-day as it did a year ago. The difficulties in giving effect to this policy had been very great, but it had been kept in view; throughout the preparation of the estimates, and he was pleased to find that it would be possible to" make'a small reduction in the total rates, . \ ; The reduction was small, being.one. farthing #in the £l. Fortunately, however, the Harbour Board had found it possible, to make a reduction also and this was estimated at < 1 of a penny in the £l. The two together would make a reduction of g of a penny, in’.the £1 in the-total rates to be collected by the borough. Twelve months ago the council,- notwithstanding a substantial increase in the harbour rate, was able to make a reduction of l|d in the £1 in regard to the whole of the rates collected by the borough. With the reduction of f- of a penny in the £1 now proposed the rates' for the. year ending March 31,. 1935, would be lid. in the £l, less than they were for the year ending March 31, 1933. Theieffect of this would’be that the council, after making the allowances mentioned later for reductions of valuations, and including the harbour rate, would be levying for the year ending March 31, 1935, something like £13,500 less in rates than it levied for the year ended March 31, 1933. £20,000 DOWN IN TWO YEARS. Taking into consideration the reduction of £6BOO made last year in the rates for; the current' year, it would be seen that for the two years ending March 31, 1935, the ratepayers would have received the benefit of a reduction in rates amounting to over £20,000. This was a comparatively large amount, and should afford some relief to the ratepayers, and Mr. Gilmour was sure they would appreciate it. s The following schedule prepared by the borough treasurer, showed the amounts of the various rates to be collected during the year ending March 31, 1935, together with a comparison for the current year (shillings and pence omitted):— ; :• ■ ■

(‘The general rate shows an increase of £3427 and special water rates show an increase of £200.) . Borough rates reduced by id in the £l. Harbour Board rates reduced by id in the £l. A total reduction of id in £l. Mr. Gilmour said that had the valuations upon which the rates were levied been the same for the two years the reduction of. £6995 15s would have represented a decrease in the rates of over Id in the £l. The valuations for the coming year were less than for the current year, owing to allowances having to be made for the reduction of £19,930 in the valuation of turban farm lands, and for the fact that a number of. properties had been resumed by the Crown. The actual reduction to the individual ratepayer wa£, therefore, only f of a penny. In analysing the schedule it would be found that while it had been possible to reduce by £7730 the amount to be collected by way of special rates to pay interest and sinking fund on loans, it had been necessary to increase the general rate by £3427. INTEREST RESERVES AFFECTED. The large reduction in special rates was/ml y possible by eating into the interest reserves. It would, therefore, not be possible to continue this reduction very long, although it might be possible to continue it for the year ending March 31, 1936. The increase of £3427 in the general rate was not unexpected. This rate was reduced by £7089 when the current year’s rates were levied, and it was known then that part of this reduction would be only temporary. Actually, as shown,.the general rate for next year would still be £3600 less than it was for the year ended March 31 last. , The reduction for the current year was ’made' possible by the fact that at the kaginning of the year the council had in hand £l5OO 19s 6d from the previous year, received from refunds of tax on interest coupons, which could only be used in reduction of rates. It was also estimated that a further £l5OO would be received early in the year from the same source, and £2120 was actually so received. The two amounts ■ totalled £3620. The tax had been superceded by a direct reduction in interest. Whereas the general account received the whole benefit from the tax, the various departments of the borough received the benefit of the interest reduction on their loans. No revenue of this nature being available to the general account for next year, the differ-

ence had, had to be made up by increasing the general rate. It was not found possible to reduce the expenditure to make up the difference. The total estimated expenditure for the coming year was estimated at £40,054, compared with the estimate of £39,144 for the current year, an increase of £9lO. In the new estimates provision had to be made for the following expenditure additional to that of the current year:—Reconditioning Carnegie Institute buildings £l2OO, increase in- subsidy to Carnegie Library £l5O, increase in subsidy to Pukekura Park and Brooklands £3OO, subsidy for aviation £300; total £1950. As the total estimated expenditure was only £9lO in excess of the estimated expenditure for the current year, it was obvious that reductions totalling £1340 had been made in other items of expenditure for the coming year. The greater part of this reduction had been made in the items comprising the streets vote. This vote, however, was only £3OO lessthan the amount estimated by the borough engineer, which in itself was £BOO less than for the current year. Mr. Gilmour had no doubt that the works committee would have sufficient funds to maintain existing streets, although a little more for permanent works would have been a decided advantage. It had to be remembered that the streets vote had been drastically cut down since the year ended March 31, 1929. In that year the streets expenditure was £31,181, exclusive of street lighting. Year by year the vote had been cut down until for the ensuing year the amount proposed was £16,194 (£25,724 as shown, less the cross-entry £BOOO and street lighting £1530). The vote was therefore only approximately half what it was for the year ended March 31, 1929, and further paring down would, in his opinion, have a detrimental effect upon street maintenance. ESTIMATED RECEIPTS. Including a credit balance of £5OO at April 1, 1934, the council approved estimated receipts totalling £40,054 for the year to end on March 31, 1935. The items were: Government subsidy £360, licenses, £3OOO, rent of reserves £l2OO, camp site and rents railway reserve £200; total £4760; Reimbursements, £10,020; general, £lOlO. Rates: 10 per cent, penalty £2OO, general rates (£17,624, plus arrears estimated to produce £16,100 by 31/3/35) £16,100; total £16,300; transfer from electric light department £5000; transfer from waterworks £2464. Payments for the same period totalling £4054 were approved as follow:— Office: Salaries balance (including clerical assistance) £525, Mayor £225, audit £l2O, sundries £BO, advertising, stationery, etc. £370, renewal fund on various property £300; total £1620. Streets: £25,724, including labour, maintenance, materials £12,716, standard survey £228, unemployment relief £2OOO, street lighting £1530,' street dedications £450. Reserves and municipal offices, £ll5O. Subsidies: Fire Board levy £lOOO, East End Reserve £lOO, Kawaroa Park £lOO, Pukekura Park £ll5O, Western Park Board £lOO, Carnegie Institute £9OO, Royal Life-Saving Society £lO, RegimentalMunicipal Band £lOO, domains and additions to subsidies £5O, Ngamotu Domain £2O, Huatoki Domain £l5, balancing separate accounts £3OO, Reserve T £2O, Egmont National Park £69, Pipe Band £lO, Carnegie Institute building (reconditioning) £l2OO, aviation .£300; total £5444. General expenditure, £5816.

Harbour rate 1934-35 1933-34 Decrease k £ £ - £ General rate ..... 17,508 14,080 (approx.) 9,369 12,262 2,892 Hospital rate .... Amalgamated rates 6,802 7,411 608 as under, over the whole borough:— 1. £553,090 Loan (Streets, etc.) ... 2. £553,000 Loan , 9,435 13,437 4,002 (Trams) ......-.. .4,975 6,040 1,064 3. Drainage Loan 4. £100,000 Water ; 8,019 9,396 1,377 671 671 5. £1,200 Pioneer Road Loan Special Water 105 111 5 rates, etc. . 9,200 9,000 Sanitation ....... . 1,800 1,800 1934-35 rates .. 67,216 74,212 10,622 Net decrease 6,995 3,627 74,212 74,212 6,995