Riccarton Rates Increased

Press, Volume CVI, Issue 31109, 12 July 1966, Page 18

Riccarton Rates Increased

The Riccarton Borough Council will increase its general rates .25d in the £ to finance its entire operations, estimated to cost £74,773, in the current financial year.

This is an increase of about 9 per cent, although the increase in the total rate demand will be about 5 per cent. This percentage will apply over most of the borough except that close to Lincoln road, where Drainage Board rates will rise sharply, producing a total increase of up to 20 per cent The council expects an income of £39,650 by levying a general rate of 2.747 d in the £. The main item of expenditure during the year will be £15,200 on resealing and widening of streets and reconstruction. A further £12,800 will go on general maintenance and street lighting. Another £5OO is earmarked for loan charges. Accounts Reviewed In his review of accounts for the last financial year and recommendations for the current year, the chairman of the finance and by-laws committee (Cr. R. W. J. Harrington) said that while the over-all financial position was satisfactory, income from rates was insufficient to meet outgoings for maintenance and capital works.

He said the appropriation account was down £7OOO because of increased charges in wages, materials, and capital expenditure. The council’s debts by loan had fallen by £32,900 and now stood at £83,800, but in view of the projected major works which the council might do in the next few years it seemed that consideration

should be given to financing these from loan monies. Cr. Harrington suggested that the general and electricity accounts be maintained and that current routine expenditure including minor capital expenditure and all maintenance be covered by current income. In the last financial year, he said, the council had proposed to spend £72,213 from the general account, but had spent £74,786. Ordinary income, including an opening balance of £13,178, had exceeded expenditure by £B. Cost Of Power Power purchased from the Electricity Department had cost £109,000, compared with £96,000 in the previous year, while the sale to consumers amounted to £190,000, an increase of £15,000. This gave the account a surplus of £17,418 after paying interest on loans amounting to £1530. Cr. Harrington said it should be noted that capital expenditure was up £14,000, and it was questionable whether future large capital expenditure could be borne from revenue. Cr. Harrington said that to stabilise annual costs as much as possible the committees should prepare loan applications for any major works during this or next year, so that finance might be available when required.