The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 13, 1927. MUNICIPAL FINANCE.

Hokitika Guardian, 13 July 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JULY 13, 1927. MUNICIPAL FINANCE.

The Hokitika Borough Council is contriving to strike its annual rates on tlie same levy as the previous year, excepting a compulsory increase oi one half-penny in the hospital and charitable aid rate, owing to the Board’s levy for the year being increased. This is so far good. The next step the ratc- ' pavers will be anxious about is the value for money. The same amount of 1 money is being provided for street and I drainage maintenance as last year, hut from the sum ear-marked, the Works Committee has been asked to carry out permanent works to a reasonable amount from the total. This is to be attempted, and should bo accomplished to the credit of the Council. The town is of largo area for iks population and income, and has a lengthy mileage of streets and Footpaths. With tho restricted revenue the Council is endeavouring to do the best it can, and one of the decisions of the Works Coin, mittee regarding maintenance for this yc'ar. is to give more attention to the footpaths. It is hoped to have some of the paths tar-sealed and this will bo done this year in preference to tarsealing roads, other than the principal street of the town. The test of the Council’s administration is the value it can return for the expenditure. Hating in reason will lve complied with readily if the ratepayers are satisfied a fair return is given for the money. The new Council is evidently going to act up to those lines. At the same time the ratepayers will he expected to do their part. When rates are .struck there is an obligation on the ratepayers to pay up in a reasonable time. The Council has to truce t its obligations promptly, and if funds are not available, has to arrange with its bankers. This means an increased cost for interest on overdraft. Having the cash ready at hand a local body, like a private individual, is ready to do more than if the money had to he borrowed to carry on. As a matter of mutual self-help it is in the interests of the town and its people to pay their rating obligations promptly. Tn tho past this has not been the practice. At the present moment it Ts understood a considerable sum of rates is

outstanding and the Hnrough officials have been instructed to institute legal proceedings for the recovery of the amounts owing. This is not a pleasant task, nor should it be a necessary one where the ratepayers expect works to be done and the town kept up in a manner creditable to all. Apart from the Council's obligations in ordinary upkeep and maintenance, it lias other charges to meet, of which the heaviest is the contribution towards the maintenance of the hospital and charitable aid payments. Owing to a recent increase in the Borough valuation this charge has been raised for the year and to provide the extra amount the Council has to increase the rale for hospital payments by one halt-penny in the pound of unimproved value. '1 his will not be a gr°at addition spread over all the ratepayers, and it i.s pleasing to find in these stringent times that the Council has been able to organise its finance so as to endeavour to pass through the year without any serious additional impart on the ratepayers. This result is the more satisfactory because the Council lias to face a liability of sonic magnitude in regard to assuring; the permanency of the town water supply. Of course, ii a large outlay becomes inevitable as it might., then the raising of a loan will be inevitable. Bui the Council in the interests of the ratepayers’ pockets i.s endeavouring to so shape matters that the position can be remedied for a time at least for a lesser sum than will necessitate 'borrowing money for the special purpose. If that can he accomplished then the Council will have shown first class bona tides, and will deserve to he complimented on easing a very difficult situation for a very moderate cost indeed.