H.—2B

before recommended by your Commissioners, the system of rating in Otaki Borough should not be altered. They therefore -do not recommend that the lands in the borough should be valued on a special basis other than the basis of valuation thereof under the Valuation of Land Act, 1925. (8) " If it is considered advisable that any lands in the borough be valued for rating purposes on a special basis as aforesaid, then to what extent, if any, it is desirable that such lands be excluded from the rating-area in respect of any future loans secured by a special rate over rateable property within the borough." Although it is not considered advisable by your Commissioners that any lands in the borough should be valued for rating purposes on a special basis, nevertheless your Commissioners consider it desirable that lands in the borough which will not be benefited or served by special works should be excluded from the rating-area in respect of loans and charges in connection with such works, which loans and charges should be secured by special rate over such rateable property within the borough as will be benefited or served thereby. (9) " To what extent, if any, it is desirable that lands that will not, or are not likely to, receive any benefit from the expenditure of loanmoneys should be excluded from the rating-area in respect of any future loans secured by a special rate over rateable property within the borough." The answer to this question is substantially to be found in the answer to the preceding reference (8). Your Commissioners consider it desirable that lands that will not, or are not likely to, receive any benefit from the expenditure of loanmoneys should be excluded from the rating-area in respect of any future loans secured by special rate, which should be levied over such rateable property within the borough as is benefited or served by the works to provide for which such loans are raised. (10) " Whether it is practicable or desirable in any way to vary, by means of a system of differential rating, or by any other means, the incidence of rates and the relative amount of rates (whether general, special, or any other kind) that are or may hereafter be assessable in respect of any lands in the borough, or any lands that have been or will be excluded therefrom." Your Commissioners recommend that it is practicable and desirable, by means of the adjustment of the incidence of rating and the classification hereinbefore recommended by your Commissioners, to vary the incidence of rates and the relative amount of rates (whether general, special, or any other kind) that are now assessable in respect of borough lands, including the lands which have been excluded therefrom, and your Commissioners do not consider that any lands should be excluded from the borough in future. They consider also that the method of adjustment and classification hereinbefore recommended should be employed, if applicable, in the case of rates that may hereafter be assessable in respect of any lands in the borough. (11) " What restrictions, if any, should be placed upon the power of the Borough Council to amend, under section 23 of the Local Bodies' Loans Act, 1926, any special rate either in respect of lands within the borough or in respect of lands which have been or may be excluded from the borough but so as to remain liable for any special rate." While your Commissioners are of opinion, and recommend, that special rates in respect of lands which are excluded from a borough should not be increased between the time of exclusion and the making of any financial adjustment under section 145 of the Municipal Corporations Act, 1920, and, if legislation is necessary to give effect to such recommendation, advise such legislation accordingly, your Commissioners do not consider that there should be any curtailment of the power of the Otaki Borough Council to increase special rates in respect of lands within the borough. As to lands which have been in the past excluded from the borough and subjected to an increase of special rates, your Commissioners have no recommendation to make, as they consider, in the special case of these lands, such increase was apparently

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