The Guardian (And Evening Star, with which is incorporated the West Co Bit Times.) TUESDAY, FEBRUARY 19th, 1924 MUNICIPAL PROGRESS.

Hokitika Guardian, 19 February 1924, Page 2

The Guardian (And Evening Star, with which is incorporated the West Co Bit Times.) TUESDAY, FEBRUARY 19th, 1924 MUNICIPAL PROGRESS.

Tim suggestion of a stringency in municipal finance appears,' to have had tlie desirable effect of the Council taking Prompt steps to set its house in order. The Council which sat in Committee last week, appears to have had a useful nniiid-t lie-table talk oil civic ulfairs. The result will not only bo helpful to municipal linance hut ensure also some ma-tena! municipal progress. The financial position is to be so grappled with that at tlie close of tho financial year some six weeks hence, the situation sh.ould he not at all out of hand. Revenue is to 110 watched, and expenditure out of tlie general fund limited. By ,recovering outstanding revenue, and restricting the outgoing payments, the position will be improved considerably. It is almost an axiom of local body finance now, that each year must provide for its own financial conduct. The law is so framed that local bodies are prevented from undue extravagance, jn that the revenue lias got to lit the exI Fcnditure. and the latter must not exceed the available income. For this reaj so.i the Council year by year studies I the estimates of receipts and expenditure. These are framed by the staff under the direction of the local body. If six'cial works are required they are estimated and set down. Ordinary outgoings are calculated similarly and set down. Then the revenue from ordinary sources is estimated, and is subtracted from the expenditure. The difference represents the amount of ratos to be levied to so balance the accounts tor the year, that at its close revenue and expenditure will balance and thoro will be no overdraft; or if there be an overdraft, then it must not exceed the amount of revenue uncollected but actually outstanding at the close of the financial year. In that- way all local bodies should, on the face of it, remain financial. But it is as essential to see that the estimated revenue is collected. just as miKth ns it is essential to see that the estimated expenditure is not exceeded. When this is faithfully watched all is well. Care must be taken to prepare sound estimates, and as much care exercised in watching over them as they materialise. In this way there is a good deal of responsibility cast upon councillors, and it is credit, able to those occupying the positions that the duty is well discharged. In tho local instance it is being found that income is not equal to the needs of the town. The town is growing all the time. At the present moment fully a dozen new residences are in the course of ere*tion. These all entail extra liability on the Council, for roads and footpatns have to be improved, crossings provided, water supply maintained etc. Rating is low in the town for Council purposes. The amount available for the ordinary upkeep of the town is not adequate, even though the rate be levied at the full legal limit. The reason for this is the low valuation, more

than a decade old, and which does not cover the general progress the town is making, which has increased values auto tr a tlcally, The Council proposes to

rail for a new valuation. It is a step n i*ie right direction, and it will tend • o the salvation of the Council by providing additional money to perform the pressing services asked of it. The Council lias not considered the question of changing the incidence of taxation from “unimproved” to ‘'capital.” probably because it feels the change would net be approved. In our opinion it would be a wise step for it would provide more income for tho Council on a better basis; that is. those best able to contribute would be paying an increased amount. But that is another story. For the present it is sufficient to note the Council i.s grappling with its difficulties in a progressive spirit, and as time goes on, and justifies further action, mi <louht the Council will not shirk a plain duty.