OTAKI BOROUGH COMMISSION.

Manawatu Herald, Volume XLIX, Issue 3792, 15 May 1928, Page 3

OTAKI BOROUGH COMMISSION.

FOXTON TOWN CLERK MAKES SUGGESTIONS'.

In connection with the Royal Commission set up to enquii’e and report upon the Otaki borough, the local,Town Clerk (Mr. Win. Trueman) with the consent of the Council, has forwarded the following letter to the Chairman of the Commission, in view of the fact that several points of reference arc applicable to smaller boroughs:— “Dear Sir, I have read with interest the appointment of a Commission to report on the affairs of the Otaki Borough Council. It appears that the Commissioner’s report is intended to cover generally

the eases of other boroughs simi-

larly situated, and craving your indulgence, I beg to submit to you the result of my observations on the subject of borough rating in country towns, generally, and Foxton in particular, together with what may be offered as a solution of the problem. The particulars I supply relate to the Borough of Foxton and comprised part of a report made to the Council in 1925, but no doubt statistics could be obtained from the Government Statistician to enable it to be seen to what extent my deductions apply generally.

“The total area of the Foxton Borough is 1271 acres, of which 535 acres is farming land in various holdings from three acres to seventy-live acres, occupied by 31 ratepayers. The capital value of the land is £24952, equal to 9.42 per cent, of the total capital value of the borough (£265,490). The Unimproved Value is £12571, equal to 12.67 per cent, of the total Unimproved Value (£99461). The value of the improvements is £12381, equal to 7.46 per cent, of the total improvements of the Borough (£166029), while the rates at 10-id in the £ on the Unimproved Value totalled £550, or 12.67 per cent, of the total (£4351).

“This area of 535 acres contributes £550 towards the Borough Revenue, more than £1 per acre, or nearly 2.2 per cent, of the Capital Value of the land, as against the inner area of the Borough, the revenue from which amounts to 1.58 per cent, per annum of the Capital Value.

“Obviously, rates amounting to more than £1 per acre per year ia too heavy a burden to put on to farming land. In the ease of Foxton, a large portion of this land is not served with water, drainage or gas, or footpaths. “Various attempts to remedy the this portion have from time to time been made. The Rangiora Borough Council succeeded in getting an Act passed in 1924, enabling them to reduce the value of their rural land for rating purposes only; but the effect of this is obviously to increase the rates payable by the ratepayers situated in what may be termed the inner area, and in many towns this would undoubtedly be strongly opposed. “Another suggestion put forward is that special rating areas should be created wherever public services are proposed to be estab-> lished, which will immediately benefit a portion only of the inhabitants. Carried out in detail, endless confusion must inevitably result, and administrative costs considerably increased. Another suggestion is to reduce the size of the Borough, but this is again complicated by. the fact that as a town expands, additional land is taken into a borough, and the scheme of establishing special rating areas for drainage and other conveniences has again to operate with its manifold disadvantages and unfairness.

“This, then, is what I would offer you for consideration as a solution. That the area of boroughs be considerably increased. That inner and outer areas be formed. That valuations be made as at present. That the local body, having ascertained its financial requirements by way of rates to be levied, to take the Capital Value of the inner and outer areas, ascertain the proportion one bears to the other, apportion the amounts so arrived at between the two areas, and then proceed to levy the rates on the Unimproved Value over each area, to produce the amount respectively required. “To illustrate my point I will give figures: At present in Foxton, 535 acres are outer area. 736 acres are inner area. “The values are as follows: — Outer area: Capital value £24,952. Unimproved Value: £12571. Inner area: Capital value £240,538. Unimproved value: £86890. “This revenue required for the year by way of rates is, say, £SOOO. This sum is apportioned between

the two areas thus: Outer area £470. Inner area £4530, totalling £SOOO. “The outer area thus contributes 17/8d per acre. It will now be seen why the area of the Borough should be increased to include a

greater proportion of farming land. At the same time, I desire to emphasise this suggestion to increase the area of the Borough. In the first instance, residents in the country derive great benefit through being adjacent to a town, shopping and marketing facilities, public conveniences, libraries, schools and educational facilities, restrooms, service-stations, pictures and other amusements, sportsclubs, telephones, and last, probably, but not least, social functions and gatherings. The Borough of Foxton has been called on to contribute toward the cost of the Shannon Bridge, the Wlhirokino

Bridge, the Beach Road, and lately the sum of £IOOO will be payable by the Borough when the ManawatuOroua River Board’s proposal to divert' the Manawatu River is carried out. The Borough is thus a contributory body to many works outside its boundaries, and vice versa, residents on property adjacent to boroughs receive a benefit from their proximity, and should contribute accordingly. This, then, is my argument for increasing the size of the Borough to bring in all this land.

“Assuming, therefore, that another 1000 acres of farming land added to the Foxton Borough, valued at, say, Capital Value £40,000, Unimproved Value £20,000, the total values of the farming land will then be: Capital Value £64,952; Unimproved Value the value of the inner area being as before (Capital Value £240538), (Unimproved Value £86890). To provide a revenue of £5,000, the inner area contributes £3937, the outer area £1063, which latter is equivalent to 1535 acres at 14/per acre.

“The capital and unimproved values (above), of the land proposed to be added to the Borough will no doubt be less than those I have quoted, but as previously stated the Commission could obtain accurate figures from the Government Statistician or Valuer General.

“On the other hand it may be advisable to fix arbitrarily the ratio between the sums to be contributed by the inner and outer ‘ area respectively, say 85 per cent, and 15 per cent.; while it may even be advisable to consider the establishment of three areas, inner, intermediate and outer with varying ratios.

“I desire to emphasise in conclusion that I do not propose to. increase the amount of rates payable by the inner area, but I propose reducing the amount payable individually by land owners in the outer area by increasing the area of such land.

“The foregoing is offered for vour consideration.”