FRIDAY, DECEMBER 27, 172.
NEW METHOD OF CALCULATING RATES PROPOSED
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A BILL WHICH CONTAINS PROPOSALS TO CHANGE THE METHOD OF CALCULATING RATES PAYABLE TO THE URBAN COUNCIL AND PROVIDES FOR REGIONAL COUNCIL RATES IS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY).
UNDER THE RATING (AMENDMENT) BILL 1985, IT IS PROPOSED THAT WITH EFFECT FROM APRIL 1, 1986, THE TWO COUNCILS SHOULD RECEIVE RATES ACTUALLY COLLECTED ON THEIR BEHALF.
A GOVERNMENT SPOKESMAN EXPLAINED THAT FOR THE URBAN COUNCIL, THE CURRENT PRACTICE WAS THAT RATES DEMANDED WERE PAID BY THE DIRECTOR OF ACCOUNTING SERVICES TO THE URBAN COUNCIL ACCORDING TO THE UC RATES PERCENTAGE BUT REFUNDS, RATE RELIEF AND WATER CONCESSIONS WERE BORNE ENTIRELY BY GENERAL RATES.
IT IS FELT THAT THE PROPOSED NEW METHOD OF CALCULATION -- THE SHARING PRO RATA BETWEEN THE GOVERNMENT AND THE TWO COUNCILS OF ALL RATES ACTUALLY COLLECTED, AFTER DEDUCTING ALL REFUNDS ADDING ALL SURCHARGES AND TAKING INTO ACCOUNT WATER CONCESSIÓNS AND RATE RELIEF -- WILL ALLOW THE TWO COUNCILS' RATES PERCENTAGES TO REFLECT THE RESOURCES NECESSARY TO MEET THE COST OF THE SERVICES THEY PROVIDE..
THIS METHOD WILL ALSO ALLOW THE YIELD FROM THE TWO COUNCILS' RATES TO INCREASE ANNUALLY AS THE INCIDENCE OF RATE RELIEF LESSENS.
THE BILL ALSO DEFINES THE GEOGRAPHICAL SCOPE OF THE TWO COUNCILS RATES BY REFERENCE TO THEIR AREAS SPECIFIED IN THE DISTRICT BOARD ORDINANCE.
+ARREARS RECEIVED AND REFUNDS PAID AFTER APRIL 1, 1986 IN RESPECT OF PERIODS BEFORE THAT DATE, WHICH UNDER EXISTING ARRANGEMENTS SHOULD BE PAID FROM OR DEBITED TO GENERAL RATES IN FULL, WILL BE DIVIDED BETWEEN GOVERNMENT AND THE TWO COUNCILS IN ACCORDANCE WITH THE NEW ARRANGEMENTS.
+SIMILARLY, PAYMENTS AND RECEIPTS RECEIVED OR MADE AFTER ANY FUTURE REVISION IN RATES PERCENTAGES IN RESPECT OF PERIODS BEFORE THE REVISION COMES INTO FORCE WILL BE DIVIDED BETWEEN THE GOVERNMENT AND THE TWO COUNCILS IN ACCORDANCE WITH THE NEW PERCENTAGES, HE SAID.
THE SPOKESMAN ADDED THAT THESE TRANSITIONAL ARRANGEMENTS, PROPOSED FOR ADMINISTRATIVE SIMPLICITY, WILL RESULT IN AN ESTIMATED NET AMOUNT OF $50 MILLION BEING PAID TO THE TWO COUNCILS IN 1986-87 AND 1987-88 WHICH WOULD OTHERWISE HAVE ACCRUED TO GOVERNMENT.
THIS SUM HAS BEEN TAKEN INTO ACCOUNT IN ASSESSING THE FINANCIAL NEEDS OF THE TWO COUNCILS IN THE NEXT TWO YEARS.
/APART FROS