AMALGAMATION.

Hutt News, Volume 3, Issue 12, 14 August 1930, Page 9

AMALGAMATION.

HUTT and PETONE.

ACCOUNTANT'S REPORT.

AFFAIRS OF THE BOROUGHS

Proposals for the amalgamation of the boroughs of Lower Hutt and Petqne have not been actively before the public;, fora considerable time, but they have been"iv the background" none the less.; At the request of the Borough • Councils, .'a. report has been preoared:. by Mr. G. "j. ; J. Foil, F.L.A., N!z.F r P^A (N.ZO F.C.A.. and it has now been released for publication. Mr Foil;, calls it a "comparaticc report on the affairs of the Boroughs of Petpnc and. Lower Hut*" covering the four years ending 31st iMarijh, 1929, prcr pared with a view to the possible amalgamation 'i ■<}£ the boroughs." It. is a

bulky -documenti' comprising 33 closely typed foolscap- pages of the main repbrt, and an appendix of ;2£5 pages of charts and financial tables. The fol-

ioiwing, is Mr. Fett's summary of his

report.

Mr. Foil said that in summing up the report it was possible only to give an indication of they principal findings. Explanations, qualifications) and. limi-, tations, w-hich were part of the main text were necessarily omitted, and before any eorieluiuon was. drsuwn •reference should be made to the report itself. With these inherent limitations the report;.was summarised as follbiws: There is no natural division between

the -twoV boroughs, arid; they form an integral whole. The relative ' areas are in the proportion of 13 to 4, the Lower Hutt Boibiiglv being the greater. The. population " a irew yCars ago

was. mue;h ".• lietivior ;APetbne .fchiln in Lower Hutt, but the latter borough is developing so much mOTe rapidly than tiie former, that .ttie "population'is now; Ijjuctically,'eqmil, iyuil< will in a few )CJiis be very much greater in, Lowor Hutt;' The deiisity of populatibri is greater in: Pet.oii'o^an'd is rabidly apr proachlng the point "when it niay be considered fixed, while the density of population in Lower Hutt is steadilj increasing .arid" may proeced for many

years,

THH BOROUGHS COMPARED

The average bizo of holdings in Lower Hutt is approximately double tthat •in Petone. The total" rateable valufe (unimpnu ed) in Lower Hutt is more than three times that of Potone, but

Hie unimproved value per acre is rather more in Potono than in Lower Hutt. A new valuation has taken ]>lace in Lower Hutt, but Petone jis <~TSII rating on the old valuation.

The of improvements in Petone is in total rathei: less than that in Lower Hutt, but the value of improve- ' ment.s per acre in Petone is 2* times that in' Lower Hutt. • The unimproved \ ulue per- assessment in Petone is- ap-pro-viniately half t«hat of Lower Hoitt, while the value'■of improvements per a^o-cshinent is only slightly higher in Petone than it is in Lower Hutt. Values per head of population are greater in Lower Hutt, the u'nimproveed value being 21 times that of Pe.tone and the value of improvements being 15 per cent higher in Lower Hutt.

There is in Lower Hutt more than twice the length of road that t'hcre is in Petone, .but each mile of road in Lower Hti'tt serves 7Si acres, while the same length in Petone serves only 54 acres. In Lower Hutt there is twice the length of footpaths that there' is in Petone, and more than twice tie length of concrete kerbing and channelling. Maintenance of roads and footpaths does not depend upon their length but upon the traffic they carry.

The sources of the financial statements presented iit this repOTt are the published accounts of, the two iboroughe drawn up in accordance with the laiw relating thereto. All funds of a local body carry interest either directly or

indirectly, and for this reason it is desirable that t>he bank balances should bo kept at the lowest point consistent with convcenience. The opening and closing bank balances at 31st March for the respective years appears to show too great a variation, and this matter calls for attention^ REVENUES AND CAPITAL.

The total vahie 0f..-capital receipts and payments is not a sound indication of the activities of a borough. It* is admittedly difficult to draw the. line between revenue and capital; especially in l-ogard to payments. In the iborbugh of Petonc revenue receipts have risen approximately 10s per head during the four years , undo^- review, ■while in Lower Suit tie increase has amounted .to 18s per head. Revenue payments in Petone have risen from £34,544 to £41,902, while in" Lower Hutt the rise has.been from £34,114 to £57,----215. In both boroughs revenue payments have exceeded revenue receipts (for reasons given in the "report). In Petone, "Income other than Rates,' 7 has varied between 31 , per cent and 35 per cent., while in Lower Hutt. it was as low" as 27.4 per cent.; and as high as 39.6 per cent. . The. apparent cause of the great increase in' Lower Hutt is due to t-he greater ambunt recovered in respect of services. The proportion which "Income other than Rates" bears to the net -revenue has risen from 25.3 per cent to 29.2 per cent in Petone and in Lawcr-.Hfc.tt lias fallen from "25.6 per cent to 23 per cent. . ■". ■'•-..- * ; ! In Petone the totals of rates collected have , increased £rpm £21,-311' to £26,311 during^ the four years^ and in i^Lower Hutt from £21,725 to ,£34,514, ...the latter increase being nearly 59 per cent., though the," population has risen i only 46 per cent. RATING-.

It .should be emphasised tiiat the amount of rates levied is dependent' upon, the contemplated expenditure. The rates in Petone have increased as the population ha-s increased, and the rates per head of population have varied -froni £2/4/6 to. £2/10/9. In Lower Hutt the lowest point was £2/11/- per head and the highest £3/1/6. The rates levied per assessment in Petprio have varied from £8/12/- to £9 13/9, and in Lower Hutt; from £8/9/to £$/13/9J v<showing fiat although the ' rates per head have been lower in Petpnc the rates per assessment have .been higher. This may be expressed otherwise, by saying that as the population * is denser there is a greater number of. heads to carry the Tates on each assessment. ; - The system of rating in each boroivgh is approximately t-he same. ; It is forecasted that with a rate for a combined borough the rate per head in. Petone would rise iby a few shillings and in, .Lower Hutt would fall 'by a small amoiunt while the rates per assessment in Petone would >f all and those •in Lower Hutt would risej but in either ease by. only a few shillings. Revenue 'payments have risen in Petdne. during the four years by 21 per the population .by 13 per cent, while in: Lower Hutt the revenue payments have risen, by 68 per cent., while the population has increased by 46 per cfent. (Sinking fund payments are included, as being revenue^ payments, for reasons given in the Tegport). ', During: the four years the.;cost 'of administration in Petono.has increased by £1563, and in Lower Hutt by £2116". The increase in Petone has been grad-^ ual,. but that in Lower Hutt erractic. ' Throughout tho whole period the cost in Lower Hutt has been higher than in Peibne

. Tthe iniportance of the amount, of interest paia by a borough is' emphasised, and. attention? is^called to that part of the report in the details of interest paid are discussed. :

■ Sinking fund^payments have increas~ed at a greater rate than the interest payments, owing- to more sotaid provisions being • introduced •■.with'-.a view to making, the sinking fund payments adequate, to meet the loans on irtaiurity.

LOCAL SESRVICE&

The present favourable .position of the Lower Hutt Borough in ( regard to the question of street maintenance is dealt with fully in t-he report. Sewerage, stormwater> and rubbish, has cost more in Lower. Hutt. than in Petone owing to the. very much greater area occupied by the former borough. Owing to Hospital Board levies being assessed upon the rateable value, Lower Hutt is called upon to pay 23 per cent

more than Petone, although the population tit tho present time Is pz-actieally the .same. The cost of the supply of water to the Boroug-h of Lower Hutt has exceeded that of Petone throughout the whole of tho period. Street lighting has also been heavier in . Lower Hutt, and the extra cost, of these services may.Tje attributed to the greater

3 area which has to be served. The borough of Lo>wer Hutt is better t* served by way of revenue and recrea--3 tion grounds than is its sister borough, - and in-consequent-o the upkeep of these * has been heavier in the former. The 5 cost of fire prevention in the tfwo borl ',-pti'ghs has been more or less the same ■ y throughout, the.whole period. - s Under 'the -Stead ■-of "Other Activi--3 ties" are included all other functions, i which arc-not of sufficient importance t to warrant separate classification,-; and . under this heading the expenditure of - Lower Hutt has been heavier than s that of Petone. - ,' DISBURSEMENTS, x In ihe borough of Petone the total c net disbursements per head of popula--i- tion. was at its lowest in the year 1927- ---; .28', at £3/4/s*, and at its highest in - t-lie. following year at £3/13/6*. In !- Lower Hutt the total was at its lowest : in 1926-27 at £3/10/4*. and at its highest in 1928-29 at £4/l/llid. -. Adminis- >•■ tration per head of population has in ; the borough of Petone risen gradually - over the four years, but in Lower Hutt 5 has fallen, thoiugih not regularly. . in Lower Hutt net interest per head of population ahs ris^en from 18/Of-. in, . 1525-26 to £1/7/2Jd in 1928-29. This > .increase represents the annual cost to i. the ratepayers of the various improve- . in en ts in the Lower Hutt borpug-h. The net disbursements on the maintenance t of streets and roads has fallen through the four years from 12/1| to 8/BJ, al-.-though tho roads themselves have been, . greatly improved during the period.; ; • Hospital levies have increased from 5/5 to 7/6 per head in Lower Hutt, , and from 4/2* to 6/9* in Petone.,.The , average total net disbursements per head of popTiiatiqn during the four ■ years for Petone has been £3/7/6, and for Lower Butt £3/17/ I*. T-he aver- j age cost per head for interest has been j 4/8 more in Lower Hutt than it has-, been in Petone, but the cost of main^ ' tenaneo of roads has been 10/3f less. Administraion has been higher in Lower Hutt by 4/B*, and the upkeep of reserves and recreation, grounds ,has ; also been 2/10*. more. , It may be concluded that the higher cost for municipal activities in Lower Hutt "is due to its greater area and to the fact that it has expended con-sidei-alble sums in improvements. The net pulblie debt. in Petone has risen from £171,1,20 to £193>622, and in Lower Hutt from £181,124 to £284,471. The public debt per head of population in Petone has varied from 18/8/- to. £19, falling again to £18/8/-. Ita Low: er Hntt .the amount per head has risen. from £22/16/ to £24/10/-. Increase in tho puiblic debt. means an increased 1 charge for interest, and the dieienee anentioned helps to explain the difference in the amount of interest paid per^head. The accounts of a local body.disclose all its liabilities, but do not disclose all its assets. -For this reason it is not considered advisable to attempt detailed investigation- of assets and 'liabilities. It is recommended that if comparison is desired between tie assets of the respective borougiiß, examination should be made of the actual 'assets themselves. . . , , &AS BOARD AND RIVER BOA/RD. ' f There are two bodiea, the Hutt and Pctorio Gas . Lighting Bpa-rd, and the Hutt River Board, whose existence .and functions might foe affected ; by amal""gamation. In the event of that taking place the gas undertaking, which by" the act of eonstitutioh is vested in the ■ Hutt and Petone Gras Lighting Board, will revert back to t&e united borough. '•So far-as the Hutt River Board is con<cerned, there appears to be no proyision to meet the case of an amal-gamtt-tion of the boroughs, and in this case the board would continue its functions^ without alteration. ,'■,'•■ UNCONDITIONAL IF AT ALL. "I do not know whether it is 'within-'----the. scope of my authority.' to make a . recommendation, but I suggest that in view of t-he results disclosed in this report, and of the present position of the boroughs if amalgamation is to take place, it should take place uncondition.ailly." \, '' : .-'-. •:-,':,' v .'■'• ■ V •■? ':: ■ The, gross area of Petone is 1132

acres and of Lower Hutt 3706 acres. The rateable are in Petone is 1012 acres and in Lower Hutt 3320 acres (assumed). ' Present population (1929): Petone, 10,520 j Lower Hutt 11,625. Population estimated to increase 1000 year in Lower Hutt up to 1943 when, 27,000 is reached., 'Petone reaches maximum of 16,000 in 1945. The estimated maximum density of population in Lower Hutt is estimated to reach 25 to 30 per acre. Th*o average sizs of each holding in Petone is 59 perches and in Lower Hutt 129 perches. The present density of poulation in Petone is 9.30 and-in Lower Hutt 3.15 per acre. It is estimated that in Lower Hutt this will reach 25 to 30 per acre. Tixo public debt in Petone is £193,----622; pei- head, £18/4/-- and in Lower Hutt £2184)471; per head £24/5/-. The average values in Petone £656; Lower Hutt £699.