Rates and Insurances on Loan Proposals.

Gisborne Times, Volume X, Issue 1001, 21 September 1903, Page 2

Rates and Insurances on Loan Proposals.

(To the Editor Gisborne Times.) Sir, —What will he the difference in cost or the saving on buildings by tho imposition ot water rate and special rate, if the present loan proposals are carried, showing any saving by reduction of insurance on same, and computing residential with business ratepayers. Service rates, according to the Act, and in addition to the special rates, as follows: Where annual value up to £l2 10s, to be 10s ; above £l2 10s, lor tirst £IOO, to be at 7 per cent.; on seeund £IOO, 0 per cent.; on third £IOO, 5 per cent,; all above £3OO to be at 4 per cent.

The rate on stores and warehouses and premises within 100yds of the main which do not take water, only halt the foregoing rates.

The following will show the different effects upon different rateable properties ; where annual values are given the amount has been obtained from Borough Council rate book for the present year. The rates of insurance are those now paid by tho proprietors of properties quoted, and the amount of reduction in rates of insurance premiums are those named by His Worship the Mayor, and which are taken to be fair and reasonable, assuming an efficient tire pressure is obtained, about which there seems to be some doubt, although a larger or smaller rebate might be made : Ist instance, Adairs' Buildings, buiness : Total rateable annual vaiue, £430. Value of building £SOOO and contents £15,000, say £20,000. Amount of service rate as per Act: Ist £IOO, £3 10s; 2nd, £3; 3rd, £2 10s; £l3O, £2 12s; total, £ll 12s. Special rate for interest and sinking fund, 2s 2d in pound ; supplementary special rate to meet further expenses for engineer’s estimate, at s|d in pound ; total special rate on £430 at 2s 7j-d in pound ; £55 19s 9d.

Total outgo on wholo building, £67 11s 9d.

Present rato of fire insurance, at 16s 6d per cent.; estimated saving of 20 per cent on £20,000, 3s 3ld per cent., £22 18s 4d. Extra nett amount to pay per annum, £34 11s sd.

2nd, J. Townley’s residence : Annual value, £9O ; valuo of building and contents, say £I2OO ; service rate, per Act, £9O at 7 per cent., £6 6s. Total special rate, as above, 2s 7.(d on £9O, £lO 11s lOd.

Gross total outgoings, £l6 17s lOd. Present rate of insurance, 16s per cent ; reduced by 20 per cent., os 4d per cent, on £I2OO, £2. Net cost, £l4 17s 10J.

3. J. Townley’s shop.—An. value £l6O ; value of building and contents, say, £3OOO ; service rate per Act, £IOO £3 10s, £6O £1 16s, £5 6s; cost of special rato as above on £l6O at 2s 7£d in tho £, £2l; gross total outgo, £26 6s; present rato of fire premium £2 2s 6d, reduced by 20 per cent., 8s 6d per cent, on £3OOO, £l2 15s ; extra net outgo, £l3 lls. 4th. Masonic Hotel, residential. —Annual value, £800; valuo of buildings and contents, say, £8000; service rate per Act, £IOO 7s, £IOO 6s, £IOO ss, £SOO 20s, total, £3B; special rato as above on £BOO at 2s in the £, £104; gross total outgo, £142 ; present rate of fire premium, £3 lls 6d per cent., roduced by 20 per cent., say, 14s 3ld per cent., on £BOOO, £57 3s 4d; extra net annual outgo, £B4 16s Bd. sth. Sydney Williams, residential.— Annual value, £26; value of building and contents, say, £SOO ; service rate per Act, £26 at 7 per cent., £1 16s 6d; special rate as above on £26 at 2s 7 ; Jd, £3 7s 7d ; gross outgo, £5 4s Id; present rate of fire premium 163 per cent., reduced by 20 per cent., 3s 4d per cent, on £SOO, 16s 8d; extra net outgo, £4 7s sd. 66h. Take a group of say 40 rateabls properties similar to the last No. 5 as typical of a larger number of working men’s homes, they would work out as follows, viz.: 40 properties, each annual value £26, £1040; value of buildings and contents, £20,000 ; service rates per Act, £IO4O at 7 per cent, £72 16s; special rato as above, on £IO4O at 2s 7£d in the £, £135 8s 3d; gross outgo on 40 properties,£2oß 4s 3d; present rate of fire premium, 16s per cent reduced by 20 per cent, 3s 4d per cent on £20,000, £33 6s 8d ; extra net outgo on 40, £4 7s 6d each, or £174 17s 7d. It would appear from the foregoing instances that the service rates are inequitably distributed, residential properties being made to pa” higher rates than business properties, although it is in the latter portions of the town where tho greatest values are at stake, and where the greater security is given by having an efficient water supply. By comparing the net results of Adair’s premises, where gross value is put at £20,000 and annual value of only £430, and whose net outgo after allowing for rebate of 20 per cent off five premiums is only £34 lls sd, with the group of 40 workmen’s residences whose gross value is £20,000, but whose annual value is £IO4O, and the net outgo is £174 17s 7d, rightly or wrongly it seems to point out that the greater proportion of the special rates and service rates are being put upon the wrong shoulders, i.e., upon the residential properties, which are mostly the working men, who are least able to bear them, in place of upon the business portions, where the profits are made, even though I they should not use so large a quantity of

water. In looking at the manner in which tho rates would press upon the different classes of ratepayers, it is only sought to throw a little more light upon the subject, without in any way deprecating any one water scheme in preference for any other. But it is now for the ratepayers, who will have to pay the burden, to refrain from committing themselves to the present doubtful schomes by voting against them until something more certain with rogard to Waihirere or any other scheme is placed before them of a more economical and reliable character. —I am, &c., Business Accountant.

P.S. —It must be clearly borne in mind that the above calculations do not include the present harbor and borough general rates, which will bo an additional 2s 9d in the £. —B.A.