UPWARD TREND OF RATES IN THE BOROUGH OF RAETIHI; A SUMMARY

Wanganui Chronicle, 28 June 1948, Page 8

UPWARD TREND OF RATES IN THE BOROUGH OF RAETIHI; A SUMMARY

(0.C.) Raetihi, June 24. With the upward trend in administration costs and the need lor an adjustment ot accounts generally, it was inevitable that there would be a rising tendency in the rates to be levied by the council lor the year 1948-49- The figures revealed, as a result of the passing of the estimates at a special meeting ot the council on Monday evening, show an increase of 6id in the £ on unimproved values, compared with last year, whilst there will be a reduction of «d on the rate imposed on capital values. A new rate to be introduced is that of the Rangitikei Catchment Board, a matter of .6d in the £ on unimproved values. This aims at the recovery of an amount of £46 imposed by that body. During the past two years payments were made from the general account to meet this commitment but this practice is now deemed inadvisable. The old method involved the council in payments on Maori rates which were not collected, whilst under the new rate the council will reap the advantage of a 5 per cent, collecting fee. The library rate shows an increase from Id to lid and this should yield something in the vicinity of £llO. This rate has been operating over the past two years only, an annual giant from the general account of £5O having been made formerly. The maximum that could be levied as a General Rate was 1/64 but the council decided not to exercise its full powers in this respect. The amount of 1/6, however, is to be imposed, this showing an increase of Id on the figures ol last year- The Street Lighting Rate, estimated to return £250, shows no change from the old levieti last year.

In view of the extra costs the Waterworks Account will be called upon to meet in the current year, it was decided to build up a substantial credit balance and this has resulted in a rise of lid m the £ in the Water Rate. At the commencement of the vear the Waterworks Account was slightly in credit but at March 31 there was a debit balance ot £lBB/6/10, this being mainly brought about by the transferring of £354 to the Conversion Loan Account. A return of £720 is estimated from the 1/24 in the £ which is to be levied. There is no change from last year regarding the Ameku Road rate. 41 in the £ being sufficient to meet commitments. This loan comes to maturity on 2-8-50. No. 2 Special Area Loan of £1296 was extinguished on February 1, 1948 and consequently no rate will be struck. This stood at Sd last year. In the No. 3 Special Area, a loan which matures in 1952, the 2d in the £ imposed last year has not been varied —this is estimated to produce £4O. A 'decrease ot from id to three fifths of a penny has been made in the rate attached to the No. 4 Special Area Loan and this should return approximately £4l. This loan will be washed up by December of the present year.

Some £l9OO worth of Conversion Loan debentures will be redeemed during the year and it was found necessary to levy a rate of 2/4 to meet this commitment —this represents a rise of 4d in the £ on last year's figure. That rate was insufficient to cover the payment due for the period and the balance was made up by transfers from the Waterworks and Electricity Accounts. Raetihi’s contribution to the Wanganui Hospital Board has risen from £352 to £360 over the twelve months.With a credit in this account of £lOO, however, a reduction from 8 to Id was decided on, this applying to capital values. Apart from the usual items of expenditure on the maintenance of services, provision has been made for tne extension of the sewerage along Ward Street from Pitt to GreyStreets. this work being estimated at £240. The new concrete culvert in Grey Street on which £9l has already been expended is expected to cost a further £l2O to complete. Fire prevention costs reached £l7l/16/0 in the past year but with the new equipment to be purchased and some improvements to buildings to be effected, it is expected that an expenditure of £297 will be involved. The purchase of a new truck for the Works Department is also under consideration but the matter is very indefinite and this item was excluded from the estimates. DISCOUNT FOR PROMPT PAYMENT OF RATES Notwithstanding the fact that the granting of a rebate of 5 per centon all rates paid within one month of receipt of rate demands has long been the policy of the council, several councillors questioned the wisdom of such action and the matter came up for review. The amount of discount allowed last year totalled £2ll/4/11. The purpose in allowing the rebate was to encourage ratepayers to pay at an earlier date and thus save the necessity for bank overdraft. The town clerk explained that today’s overdraft rate was 4 per cent., but with one account in credit and another showing debit, the one would be offset against the other and a charge of i per cent, would be made on the balance of the account that it is in debit. The practice of allowing discounts on rates was now being discontinued in most boroughs and as the council had the option of demanding the rate within 14 days of the date of the demand, he would suggest that the granting of discount be abolished. Councillors were not prepared to make such a drastic change, however, but finally a compromise was arrived at and it was agreed that the discount rate for the current vear be reduced to 21 per cent.—this to be allowed on all payments made within one month of the issuing of the demThe termination of the present financial year should see the total borough. debt reduced to £37, <22.