DEFICIT OF £20,000

Sun (Auckland), Volume III, Issue 677, 31 May 1929, Page 7

DEFICIT OF £20,000

CITY’S WATER ACCOUNT INCREASE OF 25 PER CENT. MADE The water account of the city is £19,800 in debit. Even with increased water rates, at the end of the current financial year, it will still show a deficit of £20,000. THE chairman of the committee, Cr. A. J. Entrican, was called upon to explain this unsatisfactory position when the City Council met last evening. The water committee recommended the present minimum rate of 10s stand, but on residences the annual rateable value of which exceeds £l2 10s, the charge to be 2J per cent, of the rateable value, an increase of one-half per cent. On buildings other than houses, the rate be 1J per cent., against 1 per cent. No change was recommended in the charge with respect to land and buildings which could take the water, but do not accept the service. City water meter rates were fixed at Is a thousand gallons, against lOd. The charge to the suburbs was raised from Is to Is 3d a thousand gallons, and to the Harbour Board, for use on the wharves and for shipping, from 2s 3d to 2s 6d a thousand gallons. For water closets in private houses, the rate was advanced front 15s to £1 a year. DEFICIT OF £19,800 Cr. Entrican, in explaining the state of the water account, said the unsatisfactory financial position had forced the committee to recommend a rise in water rates. A few years ago the interest bill had been £19,000, now it was about £71,000 annually—mainly on account of the new Huia dam, filters, and the raising of the Waitakere dam. The water account now had a debit balance of £19,800, and even with the proposed rise in charges, the account would still show a debit of £20,000. TEMPORARY INCREASE In reply to Cr. Paterson, Cr. Entrican said the increases in meter charges would bring in £11,580. Dwelling rates had been put back on the basis of 21 per cent. The meter charges had gone up from lOd to Is in the cities and from Is to Is 3d for bodies outside. Cr. Paterson: It is Obvious this account wants straightening up. In reply to Cr. Melville, the Mayor said it was hoped that the increase would be only for one year. Cr. Melville expressed a desire to see business premises using hydraulic lifts and other revenue-producing factors, should he raised rather than the sanitary services at dwellings. Cr. Entrican: It will mean about £5,000. We are sorry we have had to make this charge, but it is imperative. Cr. M. J. Bennett moved that the finance committee be authorised to investigate the position and report. It was unreasonable, he said, to expect councillors to swallow all the information at a glance. Cr. Entrican explained that the accounts would come all right. Moreover, Auckland’s charges were lower than those in other cities in New Zealand. Cr. Bloodworth: When will it come all right? Cr. Entrican: Oh, it will come all right. The report was adopted.