MUNICIPAL CONTROL.

Waikato Times, Volume 110, Issue 18404, 11 August 1931, Page 3

MUNICIPAL CONTROL.

GROWTH IN DOMINION

HAMILTON'S POSITION SOUND. MAYOR REVIEWS EXPENDITURE. Municipal administration, with particular reference to Hamilton, was dealt with by the Mayor (Dr. F. D. Pinfold) In an address at the weekly luncheon of the Hamilton Rotary Club yesterday. The Mayor expressed the opinion that the expenses of local bodies in the Dominion to-day were becoming more than the country could stand, partly because of their great number and partly because the past policy of the local bodies had been based on supcr-optimisin. At the end of last year there were 689 local bodies ac-

tively functioning in New Zealand, and on a population basis there was one local body to control every group of 2000 Inhabitants. He hoped the time was not far distant when the amalgamation of some of the smaller bodies would take place under some nationalisation scheme. His Worship then dealt briefly with the provincial government system which operated until the county system replaced it in 1876. Legislation was passed in 1842 for the constitution of boroughs, the stipulation being that the area must not be more than seven square miles and the population less than 2000. Wellington had the honour of being the first borough. Hamilton was constituted a borough in 1877, continued his Worship. Under the Municipal Corporations Act of 1920 boroughs must not be wore than nine square miles and the population less than 1000. Nearing City Status. ■When Hamilton had a population of 20,000 It could rise to the dignity of a city. The present population was about 15,000 but he had little doubt that when conditions improved the town would acquire the city status. This would not, of course, Involve any change in administrative methods. Hamilton's growth was hand-in-hand with the rapid development of the dairying industry and had necessitated a big borrowing policy. This was sound in prosperous times, but had had to be greatly curtailed. One of the great problems of municipal administration was how to live within the ability to pay in cash without unduly restraining the progress of the town. Hamilton's loans for municipal purposes amounted to £830,765, and after a close scrutiny, it would be difficult to single out any item of expenditure which was unjustified. The Mayor then quoted the following statistics relating to the borough: Unimproved value, £2,500,000; valuation of Improvements, £3,500.000; capital value, £6,000,000; public debts, £831,000; accrued sinking funds. £122,000; cash assets. £101,000; rents from endowments, £6500; Interest and sinking fund charges, £54,000; total revenue, £153,000; Joan money raised last year, £30,500. “Thus Hamilton’s position Is quite sound providing the unimproved value assessment is correct and providing the public can find the cash, firstly to liquidate the debt of £BOO,OOO by finding the interest and sinking fund, secondly to meet current living expenses of £28.000 apart from the revenue from trading departments, and thirdly cash for future requirements for sewage, transport, fire-fighting, bridging, and depreciation,'' his Worship went on. The public debt was Inevitable and t&e current expenses were a fixed recurring charge. Future requirements depended on the public definition of what was necessity and what was luxury. Recently the Health Dcpartwent had cautioned the Council rel garding obsolete septic tanks. The sewage system would certainly have to be improved when the money could be found. Cost of Unemployment. Relief works had cost the Council £19.000 so far, which meant that the ratepayers would have to provide £lOOO for the next 35 years to pay off for unemploywent relief. In addition, the Council was paying £lOOO a year for existing unemployment. Originally there was no proper method of liquidating loans, but this had been remedied for many years. Thus there was now sinking fund of 12J per cent on the total debt and amounting to £llO,OOO. It had been discovered that the gasworks had cost three times the amount they should have owing to an oversight. Some of the loans for footpaths had also been raised over too j long a period, with the result that the charges went on like the brook. The Council had to contribute towards Whatawhata road and bridge, the Hospital Board, the Fire Board, the libraries, Beautifying Society, and the new maternity ward. As a result of the reduction in general, special and water rates, the Council had £7500 less in its coffers this year. Of the Council's estimates fii.OOO went to the engineer's department. A new policy adopted this year had been the allocation og £2OOO for permanent footpath construction, so that the miles of paved footpaths would gradually increase each year. Future Development. Referring to the trading departments bls Worship remarked that the gasworks were rapidly approaching the stage when they would be an appreciable help to the borough flnaneA. The Council was not unanimous at present as to what policy should be followed in regard to the gasworks. The electricity department was one of the strongest and the necessity for building up reserve funds was being recognised. "What of the future?" asked the Mayor. “There are many necessities facing us. We want Hamilton s destiny to be carved so that futi ■ generations will not scoff and say we were a lot of old fossils.” One of the great needs of the future was the reduction of the number of railway level crossings in the town. The Railway Departwent had refused to move in tills matter. They could also look forward to the absorption of several outlying areas, an action which would entail considerably increased expenditure in various directions. Complete zoning of the borough under the Town Planning Act was also necessary to satisfy property-holders and those anxious to build. In addition they wanted to ensure there would be no slums in the closely populated areas, j The president. Mr A. B. Collier, voiced the Club's appreciation of the I Mayor's address and expressed the I hope that he would speak to them, again at a future date. A hearty vote of thanks to his Wor ship was carried amid acclamation, j L- •