LEVYING RATES ON RESERVES.

Manawatu Herald, Volume XLV, Issue 2586, 29 May 1923, Page 3

LEVYING RATES ON RESERVES.

AN UNUSUAL PROCEDURE. A local councillor informs us that the Foxton Borough Council levies and collects rates totalling £64 15s from Easton and Victoria Parks, which is paid into the general account from revenue. In his opinion this procedure is irregular as the Act provides that all revenues received from reserves must be expended on reserves. H says that certain work was done on the reserves which depleted the Reserves account and the balance was paid for out of the general account. About two years ago (he whole of the revenue from the reserves was transferred to the general account to repay the amount expended, which was quite in order. This method would have soon wiped off the amount transferred from the general account but the Council conceived the idea of keeping the reserves account at debit by charging rates on the reserves, such rates swallowing up nearly the whole of the reserves income so that it will be years before the reserves account is in credit. So far as he is aware no other local governing body in the Dominion has adopted such extraordinary measures in connection with their reserves but, on the other hand, have paid money out of the general account to improve the people’s pleasure resorts.