CONFIDENTIAL
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2.
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The Legislative Council might, for example, agree to give the Urban Council an initial 5% rate, leaving a 12% rate for Government. The Urban Council would be free, after the initial rate has been determined, to seek a higher rate for specified purposes, and if this higher rate is approved by Legislative Council the effect would be in practice to increase the sum of the two rates by this amount, so preserving Government's rate at the original level.
Capital expenditure - from the Urban Council rate and its
Recurrent Expenditure
other sources of income, such as gifts from the Jockey Club or grants from Government, and from loans obtained in the open market.
3. (1) The Urban Council's initial rate, i.e. for Year I or 1972/73, will be determined as that proportion of the total rate in 1971/72 which, taken with fee income in that year, would have sufficed to meet approved recurrent expenditure in that year. On this basis the initial rate cannot be determined until the 1971/72 Estimates for the Urban Services Department and Urban Council (excluding the Housing Division and New Territories Division) have been settled, early in 1971.
for
(2)
The table attached shows the pattern of Urban Council/ Urban Services Department expenditure and income between 1964/65 and 1970/71 and applies these proposals, illustrative purposes only, to each year; allowing for 26% salary oncosts for all Government staff seconded to the Urban Council and Urban Services Department, recurrent expenditure at the level approved for 1970/71 would have required 27.7% of the total estimated rate yield for that year ($319 million), or a 4.71% rate.
CONFIDENTIAL
/(3)....
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