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The Cyclopedia of New Zealand [Wellington Provincial District]

Rates

Rates.

Necessities and luxuries must be paid for even by Corporations. No community enjoying the privileges provided by the City Fathers for the inhabitants of Wellington, could reasonably expect to escape the burden of fairly heavy rates. They are based on the City Valuer's estimate of the annual rental, which is probably about twenty per cent. less than the true gross annual rental, that is to say, that a house which, under ordinary circumstances, lets for £100 a year, is valued at about £80. The total of the six rates amounts to a fraction under 3s. 3d. for a house whose ratable value exceeds £12 10s., but does not exceed £300. Above and below these valuations slight variations occur in the water rate.

Rate No. 1 is a general rate for the general purposes of the borough, of 1s. 3d. in the pound.

No. 2 is an “annual recurring special” rate of 6d. in the pound, for payment of interest on the City Improvements Loan of £100,000, a loan raised in 1879 for the purpose of street formation and other similarly permanent works. As this rate produces over 8 1/2 per cent. on the whole sum borrowed, and as £8000 of the loan still remains at interest, though allocated for future expenditure in certain streets, a not inconsiderable sinking fund is accumulating for the extinction of this item.

No. 3 is a water rate and varies as follows:—On all lands and, buildings used as dwelling houses to which water is supplied, where the annual value does not exceed £12 10s., a minimum of ten shillings; exceeding £12 10s. but not exceeding £300, 4 1/2 per cent, on annual value; exceeding £300, 4 per cent. On lands and buildings within the borough, and within one hundred yards of the nearest main, to which water might be but is not supplied, only half the above scale is charged, while on all buildings supplied with water used as stores and warehouses or for any purpose other than dwelling houses, a uniform rate of 2 1/4 per cent. is charged.

No. 4, is a hospital rate of 3 1/2d. in the pound, to meet the contributions payable by the Council to the Wellington Hospital Board and the Wellington and Wairarapa Charitable Aid Board.

No. 5 is a library rate of one penny in the pound, and it produces upwards of £1400 per annum.

No. 6 is the sanitation special rate of 2 1/2d. in the pound at present, but the Act under which it is struck provides for a shilling rate for page 276 the purpose of interest and sinking fund for the loan of £165,000. The whole rate has been struck, but it is not likely that the whole of it will ever be needed. The present demand of 2 1/2d. produces over £3500, with a rapidly increasing rateable value, so there is a strong probability that the sanitation rate will not exceed 6d. in the pound. Some of those whose opinions are worthy of being considered believe that a much less provision than that will be needed.