RAISING OF RATES

Waikato Times, Volume 121, Issue 20246, 15 July 1937, Page 6

RAISING OF RATES

MAYOR’S EXPLANATION. ADDITIONAL EXPENDITURE. INCREASES IN EACH AREA. “ I regret to say It has been found neoessary to Increase the rates and refuse collection fees,” commented the Mayor, Mr J. R. Fow, when moving that the estimates be approved. “However, those ratepayers who are also consumers of electricity will find compensation In the fact that, as from the readings taken -on and after August 1, the ordinary scale charges are being cut for prompt payment to 10 per cent less than the present net prices. This reduction the engineer estimates Is worth approximately £4OOO calculated on last year’s revenues, and It will give relief where it is most needed. While little comment Is likely to be occasioned-by the reduoed electrical charges, people undoubtedly will desire to know more about the position of the rate accounts and the reasons for the increases in these. Falling of Balances. “The balances In the special rates accounts at the opening of the year total £5566, compared with £5767 last year, and the water account £1454 compared with £l3lo—for all practical purposes these slight differences do not matter. The balanoe In the refuse collection account, however, has gradually fallen from £956 In 1934 to £762 In 1935, £502 In 1936, and £225 in 1937, due to the reduced charges made over these years, the earlier fee of 15s having been brought down to 12s per service in the last two years. To avoid a debit balance at the close of this year, we have had to increase the charge by Is per service to 13s, and I hope we can maintain it at that in future.

“In the general account we have had to make provision for the following:—Reduced opening credit balanoe, £589. Estimated expenditure materially In excess of previous year: excess costs shorter working week, £1055; Hospital Board levy, £929; Fire Board levy, £608; RaglanWhatawhata road, £250; housing survey, £257; polls and eleotlons, £300; Interest on overdraft, £100; part cost by-laws, £175; traffic Inspection, etc., £109; buildings eto. Inspections and general office salaries, £105; (King George V. Memorial Fund, £250; Improvements Hinemoa Park, £125; sundial Memorial Park, £6O; making the total extra required in the general aocount, £4912, while the costs of repairs to the Hamilton traffic bridge Involve an Increased payment of £B3B from the special rates over the whole borough to meet the Instalments on the short-dated loan raised for this purpose. “The Richmond area special rate is also affected, In that this year It is being called upon to meet the Instalments of the loan raised for water and drainage In that area. It will be noted that in the main these Increased costs are beyond the control of the council.

“The additional rates to be found from each area ore:—Hamilton £3254, representing an Increase of 9.9 per cent; Frankton £479, an Increase of 6.9 per cent; -Claudelands £479, an Increase of 10.5 per cent; Maeroa £73, an Increase of 6.7 per cent; Richmond £77, an increase of 51.2 per oent; making £4362 in all, but after allowing for this we are still about 14 per cent below our peak year total of general and speoial rates (1928), and we have the satisfaction of knowing that throughout we have built up our assets and we are not going to be faced at some later date with any heavy bills for deferred essential maintenance works.

Numerous Improvements Required. “There are numerous Improvements required—town halls, ladies’ rest rooms, men’s conveniences, and extensions to libraries, in the way of buildings; extensive work is necessary at the cemeteries and at some of our parks and gardens; much additional kerbing and sealing of roads and footways remains to be done,” added Mr Fow. “Our revenues can only meet these demands bit by hit over a period of years and people are Impatient. It should be realised, however, that these Jobs, each and all of them, are going to add to our oharges if the rate of progress of recent years Is to be accelerated, and that In times of financial stress it Is not desirable for the community to have too great a part of its revenues earmarked to meet interest and sinking fund charges. Costs for buildings of the type mentioned are about 50 per cent greater than they were two years ago, and for the next year or two will probably remain at the peak. These facts should be remembered when we are considering proposals to raise loans, and those who clamour for quicker action must expect and be prepared to pay extra for what they need. The increased rates I his year are essential to meet increased wages and prices of materials and the estimates amply demonsnare (lint you can’t have your cake and cat Jt too."