The Timaru Herald MONDAY, MARCH 21, 1927. THE RATEPAYERS’ BURDEN.

Timaru Herald, Volume CXXIII, 21 March 1927, Page 8

The Timaru Herald MONDAY, MARCH 21, 1927. THE RATEPAYERS’ BURDEN.

Ratepayers- who recently experienced considerable financial inconvenience, jjist at the most inopportune time, in order to meet the- unusually heavy demands, of the municipal taxgatherer, are not unnaturally beginning* to ask themselves it a comp-leto overhaul _ of'. our municipal administration is not. long overdue. But the ratepayer is- not. the only citizen, who should take a keen interest in the financial policy of the Council. Some people cherish the fond illusion that only the property owner pays rates. Such a mistaken, idea would soon be dissipated if the man who pays lent and the heads of households who provide, for their families would ask themselves if it is not the practice, to pass on to the consumer all increases in rates and costs of production. Directly or indirectly, everyone pays rates, and the sooner that economic truth sinks into the minds of our citizens, the sooner we shall have more interest in the question of the rating charges _ annually levied on the community. Thu fact, however, that the business men of the community are not a. little perturbed over the rapid rise in the borough expenditure and the consequent abnormally heavy increase in the rate si imposed on the borough 'by the present Mayor and Council, is a most encouraging sign. The reason tor 1 this apprehension is quite obvious and ist well founded. During Mr Wallace's term rf office, the general rate has not only been in creased nearly 30 per cent., but the unimproved rating value of the borough has advanced from .£1,482,842 to *-.'1,807,002. In other words, not only have the general and water rates steadily risen, hut. last year, the value of the borough for rating purposes appreciated by £322,420. What this abnormal increase in annual tribute the municipal tax-gatherer levies on the community can be seen in the. following table, showing the income drawn into the coffers of the Borough Council as the proceeds of the general and water rates:

General Rate. Water Rate.

The table does not include the revenue derived from the sab.; of water, under tho heading nf extraordinary supplies, which yields the borough .treasury about £4400 a year. Put together the general rate and the water rate give the following total:—

It will Hi us be seen that during Air Wallace's term of office as Alayor the aggregate rates drawn from the pockets of the ratepayer's (in other words paiu by the community) has shown an increase of £15,220. In a single year the rating burden, already pressing heavily on the community, was increased by the enormous sum of £12,602. Even in most prosperous periods such an increase would very considerably upset the financial balance of the community. It is doubtful, however, if the majority of ratepayers, in view of the decreased income derived by business houses', owing' to unfavourable economic conditions and financial uncertainty, have at any time within recent year's, found it so difficult to meet tire rating demands of the Mayor and Council, and yet an additional sum of £12,602 in annual rates lias had to be paid. In face of these facts, our borough authorities can hardly expect to escape the very general criticism being levelled at- the present municipal administration. We warned the Alayor and Council, when the question of striking the annual rates was under discussion last year. The signs of tire times were then unfavourable, but the Alayor and Council ignored all warnings; they spumed tire appeals of anxious ratepayers, and they shut their eyes to those ominous signs which then hung menacing on the financial horizon, and have since forced the country to realise the stern realities of the financial situation. The Council, however, had decided to embark upon a spending policy, and would not he deterred or steadied. It is interesting to note, in this connection, that since April 1, 1923, the borough expenditure has grown in successive stages, as shown below : .Total Expenditure.

In a single year, in face of an unfavourable outlook, the borough expenditure bounded up by £6944. It is a verv simple matter to strike rates, though, perhaps—as the unpleasant experiences of the past few weeks have shown—less easy to pay. During the Tears ending Alarch 31, 1925 and 1926, the Council expended thousands of pounds without reprd to the estimates; indeed, lavish expenditure had become a habit, aim the spendthrift is about as likely to hamper himself by pursuing a policy of economy as a

Muscovite .is likely to salute the Union Jack. In the two years under review, the Council overspent its own estimates by the following amounts:

In two years, Mr Wallace and his fellow Councillors overspent their own estimates, by £8530. In other words, during the-twenty-four months, from April 1, 1024, to March 31, 1926, while trading, commercial and industrial concerns in the town, facing self-imposed . restrictions on their financial outgoings, struggled, sometimes without success, to maintain their monthly returns, our municipal administrators, regardless of the coa: r<iacnces to the ratepayers, expended on an average about £l2 every day of the week in excess of the Council’s estimated expenditure. Although the rates been steadily increased and the rateable value of the borough has appreciated and .given more scope for exercise of the Council’s rating powers, the bank balance standing to the credit- of the borough lias steadily diminished: Credit at Bank.

These figures 1 show that on April 1, 1923, the general fund was in credit by £3993 15s Id, but by the beginning of the current financial year, the credit balance had shrunk to £SB. Whatever may tie said of the virtues ot the present. Mayor and Councillors, the opinion is very generally held that finance is not their strong point. They have displayed a remarkable capacity to spend, and spend unwisely sometimes. But big and little ratepayers are feeling the somewhat, staggering repercussion of municipal extravagance. Hence the growing'* conviction in business circles, in view of the steadily increasing intenseness of economic pressure and the decreased spending power of the people, clue reunfavourable overseas markets, that tho administration of municipal aft airs is overdue for close sciminy ami drastic overhaul, ti. then, tho heavy burden <.f excessive rating is to be lifted from the shoulders of the community and municipal expenditure reduced, a strong and trusted leavening of civic representatives who understand finance and are capable of putting well-tried business principles into municipal practice, must be elected to office at the forthcoming municipal election.

Year 31st finding M;i roll £ iS. (I. £ s. d. 1924 37,897 14 6 9,266 4 4 192,1 ...... 40,451 14 7 9.346 16 1 j 020 40,325 5 8 9,393 4 6 1927 50,823 12 3 11,500 0 0

Year ending March 3L £ s. <3. 1924 ... 47,103 18 4 1925 > ... 49,798 10 8 1920 9 9 1927 ... 62,323 12 3

iear ending March 31 £ d. 1924 U 6 1925 ... 74,414 4 6 1920 ... 74,784 n 3 J927 ... 81,728 13 0

Your ending March 31 £ (5. d. 1925 18 6 1920 3968 16 6 £8536 16 0

On Anril 1 £ s. d. 1$23 3993 15 1 1924 3260 16 10 3925 493 32 6 1926 0 0