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69
March Borough Treasurer and Controller submits to the Finance
Committee an estimate of requirements for the ensuing
half-year based on :
One half of the Borough Council requirements approved
for the full year ; plus an estimate of the requirements
of the Precepting Authorities for the ensuing half-year.
On the consideration of these figures the Finance Committee recommend the
Council to make a definite rate.
The necessary resolution having been passed by the Council,debits are raised
in the rate books and demand notes prepared. To instance the rate of 5s. 8d. in
the £ for the next half-year, the Justices will sign the rate books on April 1st,
rate demand notes will be posted immediately, and ratepayers given the opportunity
of paying their liability in full, or in two moieties, by way of quarterly
instalments.
The same procedure will obtain in respect to the rate to be levied for the halfyear
commencing on October 1st, 1930, but with this variation, any supplementary
votes of the Council, or financial adjustments on the precepting authorities'
accounts, will be provided for.
Suggestions for a Yearly Rate.
No alterations will be necessary in the method of considering the estimated
requirements of the Borough Council, but the total figures will be the sum brought
into account for inclusion in the next yearly rate. To this will be added the
requirements of the County and the Metropolitan Police, based on their official
information. The aggregate of these items will represent the figure to be raised
by rate.
It will be seen that this method does not provide for the raising of supplementary
votes, but I see no serious objection to this. Generally, these votes cover
works or requirements of a minor nature, or, if for substantial amounts, such votes
arise from the fact that the Council is able to pass supplementary votes for expenditure,
and to apply unexpended cash balances to meet these costs. With a yearly
rate, the Council would be substantially in the same position.
In the event of the Council agreeing to a yearly rate, I recommend that the
ratepayers shall still be given the option of making payment in full, or by four
equal instalments, constituting quarterly payments, as at present.
One of my principal reasons for suggesting a yearly rate is that experience
shows that a percentage of ratepayers discharge their half-year's rate in full. An
analysis of the rate accounts for the rate made April 1st, 1929, shows that 2,193
assessments were paid in full discharge of the levy during the currency of the first
quarter. This represented an advanced payment totalling £13,150. It is my
considered opinion that if a yearly rate were levied, this sum would be very
materially increased. Even accepting that if only the same ratepayers continue
to discharge their full rate on first application as they do now, there is certain to be
an earlier collection of cash generally over the Borough. A very approximate
estimate of the financial gain to the Council can be made on existing conditions.
My opinion, based on a moderate computation of the financial benefits which
will accrue through the service of yearly demand notes is that the earlier collection
of the rate should represent at 4 per cent, interest a cash value of at least £1,000
per annum. To support the view that I am not overstating the position,
I am informed that in Bank Interest alone Hampstead benefit by nearly
a penny rate in the £. Their actual bank interest for the year ended March
31st, 1929, on the General Fund was £3,529. Your Committee may consider
that there is a big disparity between this experience and my estimate for
Camberwell, but one has to remember that Hampstead is a wealthy borough, and
I know that a very large percentage of their rates is paid in full on demand.
Another material saving can be made by using yearly rate books instead of
printing for each half year. The Printing Clerk informs me that, based on average