CITY FINANCE

Dominion, Volume 11, Issue 102, 23 January 1918, Page 6

CITY FINANCE

WHY THE REVENUE HAS GROWN EXPLANATION BY THE MAYOR The Mayor of "Wellington (Mr. J. P. Luke, C.M.G.) referred yesterday to a statement made "by a correspondent of Tub Dominion that tho city rates had increased during the present Mayor's term of office. It was evident, said Mr. Luko, that the correspondent was confusing the figures of the rates with tho amount of tho revenue.. The rates had not been increased,; the city revenues, on the other hand, had grown and would doubtless continue to grow, owing to tho increase of the population, the rise of valuations and the enlargement of services.

The ordinary rate for the city stood at 251-65 d. in the pound on the unimproved value in 1910, 1911,1912, and 1913. at 2 73-IOOd. in 1914, and at 2 71-inOd. in 1915 and 1916. The rate for the year 1917-18 remains at 271-100 d. The hospital and charitable aid rate is not fixed by the City Connoil at all. It is levied upon the City Council by the Hospital and Charitable Board, and is charged upon the annual value. This rato stood at 3d. in 1913-14, 22-3(1. in 1914-15, 31-od. in 1915-10, and 3 2-3 d. in 1916-17, while it stands at 3 1-3(1. for 1917-18. The water rate, also collected on the annual value, has remained unchanged throughout the period. "It is quite true that the amount of money produced by the city rates has increased during the time I have been Mavor of Wellington," said Mr. Luke. "The city revenue is bound to increase progressively, since the city itself is growing. The rates produced £153,672 in 1913 and £174,846 in 1917. During that period the population of the city increased by about 10,000; the number of houses was increased, and new business properties became available for the payment of rates. There bave been increases in valuations, also, and on that account the rates produce more. But it should not be forgotten that the increase in revenue, duo to the factors _ I have mentioned, has been accompanied by a corresponding increase in the expenditure required to maintain the city services and to carry out the improvements that are apparent on every hand. During my term of office the indebtedness of the city has not been increased, and I think it is a matter for congratulation that wo have been able to maintain the city and effect substantial improvements, including the purchase of properties, during years of severe stress without raising loans. The annual charge for interest lias shown a slight decrease, owing to the repayment of some old loan money. "Some of the items that have gone to nrnko up the increased expenditure may be quoted for the information of people who do not understand tlio position clearly:— 1913. 1917. £ £

Scavenging and street watering 6,900 8,200 Drainage 6,279 7,160 Fire Brigade 7,287 10,268 City reserves , 7,800 10,100 The Zoo 752 2,800 Current expenses 1,286 2,331 Hutt Road maintenance — 1,500 Sanitary services 1,572 3,100 Forestry 159 2,164 "This list is by no means complete, but it will serve 'to show how the cost of running the city has grown with the natural increase in the revenue. "Among the improvements that have been undertaken during the period under review have been the purchase and maintenance of the Day's Bay bush, the construction of the seawall and esplanade at Oriental Bay, the purchase of properties, the extension of drainage, the formation ot streets, and the development of reserves.' The tramway and electric iighting undertakings I need not discuss. They a:e business undertakings and they pay their own way'without making <oiy charge upon t.ho rates. The annual city accounts place very full information before, the people. I feel that the Mayor, the city councillors, and the municipal officers of Wellington have reason for congratulating themselves on what has been done during a period that includes tho 1.913 strike and over three years and a. half of war. If anybody wants to have a shot at the Mayor, he had better choose n more effective missile than city finance."