1/6 IN THE £.

Thames Star, Volume LXV, Issue 19346, 1 March 1935, Page 3

1/6 IN THE £.

THE BOROUGH RATE. ESTIMATES FOR 1935-36. £SOOO Rating Reduction. COMMISSIONER'S BUDGET. MEETING ALL COMMITMENTS. A total net rate of 1/6 in the £ on the 1931 unimproved values, in accordance with the recent legislation, is provided for the financial year 1935-36 in the Estimates submitted to the Borough Advisory Committee by the Commissioner, Mr. C. L. Grange, at a special meeting yesterday afternoon, attended by the Mayor, Mr. S. Ensor (chairman), Messrs. C. J. Garland, C. S. Donovan and H. R. Bush. Mr. S. C. Muir, of the Finance Committee, was also present. This rate confirms the forecast of the Commissioner at the time of the recent agreement with the Loans Creditors' Committee. The Commissioner expressed the opinion yesterday that the rate could probably bo kept, at 1/6 for the next few years. .-, Rating Summary. The statement of Tates proposed to be struck and estimated to be collected in 1935-36, is as follows:

1/7 £14,224 £9,969

Extra water rates and sanitation rate are not included in the above. Percentage of rates collected, 1931-32, 54 per cent..; 1932-33, 65 per cent.; 1933-34, 69.2 per cent. Estimated percentage of rates to be collected: 1934-35, 72 per cent.; 1935-36, 74 per cent. Rate levied of Id in the £ produces £754. On basis of 74 per cent, being collected, Id. rate will yield £630 net. Provision has been made for a cash 'discount of 5 per cent, on monthly instalments paid within 30 days of due date. Estimated Balances. The estimated balances of accounts at March 31, 1935, and 1936,

The figures submitted for 193435 are estimated from the actual receipts and payments to February 1, 1935, and the Commissioner explained that the whole of his estimate of receipts were on a very conservative basis. Commissioner’s Statement. In submitting his statement of tho estimated receipts and payments for the financial year commencing on April 1, 1935, and ending on March 31, 1936, the Commissioner said:— “The estimates provide for meeting the Council’s commitments in full and for carrying out certain permanent improvements in the Borough. “The opening figures at April 1 next are approximate only, as it is not easy to arrive at what the position will be at the end of the year until the rates and other revenues are collected and allocated. Rates. “Provision is made for a total net rate of 1/6 in the £. The gross rates to be levied, including the water rate, total 1/7 in the £, but the discount of 5 per cent, on tho full rate and on the extraordinary water fee reduce the net rate payable in the average case to slightly less than 1/6. This represents a substantial reduction; in fact, tho total levy will be nearly £SOOO less than this year. It will be recollected that the current rates were reduced by 13 1-3 per cent, to ratepayers who had not had their valuation forced down below 75 per cent.

"The granting of such a remarkable measure of relief is made possible by three main factors: Firstly, the splendid response made by ratepayers to the appeals for payment of arrears and current rates; secondly, the generous concession made by the debenture-holders; and thirdly, reverting to equitable valuations as a rating basis. "The rates are now evenly distributed over the whole of the rateable properties in the borough. No ratepayer has any advantage over another in the matter of valuation.

"The system of paying rates by monthly instalments has proved to be very popular with ratepayers. The difficulty of finding a lump sum for rates at the end of the year is done away with. The small monthly payments are easy and the discount" o. 1/- in the pound is a valuable consideration. The Council can well afford to grant the discount, as overdraft interest is saved and the rate collection is improved. "The heavy reduction in the rates is made in the belief that a much greater proportion will be collected next year. The amount of rates in the pound for the following year will be determined by the response, during the coming year. permanent Surfacing of Roads.

"The sum of £I2OO is provided for the bitumenising of road surfaces. This is in continuation of the sealing work which will be carried out 'during the next few weeks. It should be here stated that it will not be possible to extend the sealing programme to any appreciable extent in future without further financial provision being made through the rates.

Footpaths

<?A vote of £6OO is included for footpaths. It will be possible to do a considerable length of permanent tarring out of this sum.

Electricity Account.

"Provision is made for the purchase of a new 1-ton truck for tho electricity department, a new transformer and necessary plant, and for renewing one-half of the Pollen Street reticulation.

Interest Account

"The balances remaining in the loan interest accounts at the end of the current year will be distributed to debenture-holders and to sinking funds on July 1. "The debenture-holders will not have any claim to arrears of special rates levied prior to March 31, 1935. Such arrears will be credited to the Council's general account when collected.

Closing Balances

"It is anticipated that at the close of next financial year, March 31, 1936, the general and separate accounts will be in credit. "One cannot help but be impressed by the earnest endeavour of" ratepayers to keep their current rates paid arid to overtake the arrears in cases where such are owing. Their efforts of the past three years havo culminated in the Council being able to pay its way and in a greatly reduced rate," concluded the Commissioner.

The Discussion.

In the discussion and explanation of various items detailed in tho Commissioner's statement, tho Mayor referred to the street sealing programme and the Commissioner's hint that financial provision through the rates would be necessary in tho event of any considerable extension of the programme in the future. Ho thought some attention should bo given to the maintenance of roads already sealed. The Commissioner explained that for the current year £450 was provided for sealing roads outside tho main highway, and about £4OO for the main highway, and if the same programme continued provision in the rates would be essential.

Mr. Donovan inquired whether tho collection of arrears of special rates would help the position. The Commissioner said he had allowed for a £2200 collection of arrears and if more were collected it would certainly improve the position. His estimate, he assured the committee, was- very conservative. The Mayor, refering to the Sanitation Account, and the levy over the unsewered areas, said Tararu definitely had to have some service and he thought that possibly some policy of installing septic tanks might be adopted, the Council to contribute towards the cost.

The Commissioner said the Health Department would not permit tho general installation of septic tanks. The provision of £l6O from the General Account for the proportion which could not be connected to tho sewer, together with the collection of the rate, was estimated to square the account. 1931 Valuations.

In reply to questions, the Commissioner stated that the rate levy for 1935-36 was on a total unimproved valuation of about £IBI,OOO, compared with about £134,000 for the current year. He did not think the Assessment Court would agree to much variation in regard to objections, as this would again create inequality of rating. The rating reduction was about 33 1-3 per cent, from last year's figures, in the averago case.

In reply to Mr. Garland, the Commissioner said he thought the Council could probably keep the rate down to 1/6 for the next few years. There was a very real effort on the part of ratepayers to wipe out their arrears, and the position was improving all the time. The committee unanimously approved of the Estimates, and at the suggestion of the Mayor recorded its appreciation of the Commissioner's good work. Mr. Donovan remarked that now the rate was down to a reasonable figure he hoped property-OAvners would make a special effort to maintain their properties and at the same time provide more employment in the town. Many properties had been badly neglected of late yea's (Continued at foot of next column).

and needed immediate attention. They were assured of at least three years' relief in rating.

In reply to Mr. Muir, the Commissioner said arrears of rates had been reduced from over £40,000 to about £27,000 at March 31 last, and should be down to about £20,000 at March 31 next.

p 1 CD B E. cfiT *T3 ffl « P* CD S3. CD >-s Name of P3 Hates I cT • V-* l-i M to 03 03 M CL, Amount Ot Ot Ctt in the £ oo M 00 CO *00 oo CO 03 CO 1,055 t*3 Proposed Levy JO OO On 00 03 V 03 03 03 oo 03 -3 Ol O t*3 Estimated Collection

are: — 31/3/35 31/3/36 Cr. Cr. General £2865 £1053 Electricity . 578 88 Water Supply 847 625 Library ... — — Hospital 191 145 Abattoir 234 106 Sanitation .. — Heavy Traffic Fees .... 133 133 Cemeteries . 29 14 Interest ... 7960 — £12,837 £2,164