CITY COUNCIL FINANCE.

Auckland Star, Volume XXV, Issue 144, 18 June 1894, Page 2

CITY COUNCIL FINANCE.

DEPUTATION TO THE MAYOR.

CITIZENS WHO OBJECT TO LOANS,

PLAIN TALK BY THE MAYOR.

A gathering of an unusual character took place at 10 o'clock this morning at the City Council Chambers, when a deputation waited upon the Mayor (Mr J. J. Holland) to protest against the proposal of the Council to raise a loan to pay otf debentures and effect necessary works. Mr Holland and Mr P. A, Philips received the deputation, which consisted of Met-dra D. B. McDonald (Chairman of the meeting which appointed the deputation), J. 11. Field, Courtenay, E. W. Burton and E. Bell, The .deputation was introduced by Mr McDonald. The Mayor, in welcoming' the gentlemen, said, "I am not disposed to psablish a precedent, in this matter. Firstly, because the bulk of the information could be obtained by application, and, secondly, because my views might not) be those of the Council. I may say that I was not certain the Council would proceed beyond authorising the conversion of the loan falling due. With regard to taking the ratepayers into our confidence, I may add that all meetings of the Council are open to the public and their proceedings published. One good result may arise from your action, and that is that the ratepayers will Bee the necessity of exercising economy of expenditure, and cease to importune the Council for large expenditure on unproductive works, or in districts where the rates are very trifling." The first question asked was : 1. "Will His Worship supply the Committee with a copy of the Council's solicitor's opinion on which the special order resolution for the loan of £30,000 now pending continuation ie based J" The Mayor said that the document might be perused by the Committee. "The audited accounts of the city showing an overdraft on all accounts of £12,428 14s Id on the fclst March, 1893, it is desired to learn the amount now overdrawn on all accounts, and to what special or other works the increase (if any) is attributable." The Mayor replied : The total amount of the overdraft is £26,180, mainly due to the insufficiency of the special rate, targe pay?^t« fcp ■ cMritablo aid, and depreciation

for some years paßt in rateable values 1 In answer to Mr Field, the MtMB when he took office the OTardri^^Ml £22,000 odd. *SH Mr McDonald : What is the a\neunt M I for charitable aid this year ! ' '"'"l^m Mayor : £2,700 ; a slight increase ««.- 1 last year. ; ;;<'< i' :<'—l^B9ll Mr Field pointed oub that charit&bla iM^l had only increased about £240 this vetfltlii that would not account for the neoßnit^l for a loan. *-w»Ky ( I The Major said this was about thVlsiill time to go into the question of fta^illllli draib. The probability was that the mII statement would show a decreaie'roif^^H! overdraft. As it was, seme ; o£.sJilß| had been received since those figure* ttSSjil prepared. Ib was from hotel licejtgeg ftSjfil various other sources. The new.rate^Ki only jusb been struck, bun, of coDrai^^KHl not been collected yet. Somethiug^rciiii £2,000 had been paid in daring tb&lffiK Mr Fisld was proceeding to ask question'!! on the figures, when he was iQterruptwl^^ the Mayor, who pointed to a dacumeWjffl iront of him and t»uid, " You kave eentTrSll in a list of questions, and I am preparei^Hl answer them, but not to reply to any diwm tions thab may be asked by the danWv tion." . ■ wßm Mr McDonald said,." We come fiWjfilii deputation from a meeting of ratepavefiwl which empowered us to ask these? oakS! The nexb of the written questionsvwira§ " Is the £30,000 loan intended to be ttlttf|| under the Municipal Corporations-'ftidJi 1886, section 189, or under the Local Btidielmi Loans Act, 1886, and if under the, latwfi Act), where, and what iff the official^eifflß dence of its adoption." The Mayor said the loan..viiA^H under section 189 of the Municipal' OWi porations Act, ISB6. The Local BodieS^lffl was not adopted. •• The fourth question submitted whs •'■ " What was the overdraft on all account* ab the time of the coming into operattoffjffl each of the said Acts?" The Mayor: "£35,000 on the comings|||| operation of the Municipal CorporatioMC Act of 1886." Mr Burton : What is the lowest point to. which the overdraft has been reducedt^H The Mayor : Finish the printed'lisbiriffi please. " Whab is the object of tying-up th«\ loan for 42 yearß at the high price ol 5 per. cei;b., seeing that it may be obtained^ at tWf?" same rate with a currency of 10 yeans ?§i§§| The Mayor: "To secure a-'ibetler^ premium, and to enable all debentures to* fall due bb one date." ' The lasb of the questions was: ''TOuflfß objection have you to calling a meeting^M burgesses for the purpose of baking ■JptgK; citizone into yourconu'donca and conßiilpiig^i them in regard to the proposed loan, seeing that section 179 of the Municipal Corpo^m tion Act provides a similar course, and th the spirit of the Act is to establish in regard to civic credit pledging direct poinriuKl control accompanied by the right of.y£tm|Kl The Mayor : Because the Act mi provieion to enable tho expense of a poll beinjjlft1 avoided, and because, the incideaWMsif taxation or debt aro not thereby increaw|f|| but a considerable annual saving is effected. Section 189 of tho Municipal Corporatioaa' Act does no bear out your views as to 6ha spirit of the Act. Mr Courtney said if it was legal toMSK still, ib would be better for the Council fo be fortified by a public meeting*JbS^B raising the loan. The Chairman said thab after all tin ' deputation was only a small Bection.fmffi only represented a minority of the<|n||fl payers. There were only 19 presentj^^Mj meeting which appointed the depaJIUH which was a small minority of thßil?laßM ratepayer?, and some of those pf'(ji||9H| the meeting only went there otlmM curiosity. Mr Field said the whole scheme^^^H be laid before the ratepayers. The Mayor said every publicity had.wea^ given and any ratepayer could afct6lMW| meetings of the Council. ';% Mr McDonald said the main danger]™® a further increase of indebtedness ilfflHß Mr Burton said aa it was they appwr^E, to be living beyond the income of the Council. ~ The Mayor admitted aucb was-tbe-iwMH Mr Bell said he wished ib to be-nnat^ffi stood the deputation was not opposed to the Council, bub merely wished tho bail interests of tho city to bo looked after.- At present they were living in excess :ifsraHJ income. If this £30,000 were borrows pay off an overdraft another would jigjwuE The Mayor said only £18,000 odd would be required to pay off the overdraft. Mr Bell said then they should live within their income. ' ' ■'^^SJMrJ The Mayor said thab personally ho objected to borrowing, but ho felt he djuh* bring this matter before the ratepayer* M*J way or another. One good result isigjij)^:, arise from the deputation by calling attention to the state of affairs, and that might prevent ratepayers from continually asking for the Council to carry oub unproductive works. . . iMr Field: " Hear, hear." - The Mayor laughingly said the kit) petition received was asking for work to b* x done in Ponsonby thab would cost hundreds ' of pounds, and Mr Field's name was on that petition. Another of tho deputation (pointing to Mr McDonald), had signed tshrer requisitions for work. , / Mr McDonald deprecated'any personal refiectioiiß. He denied thab he had .signed three requisitions, the only petition hehaa signed was for, a lamp that) was needed in » dangerous place. The Mayor said thab might be the cue, bun he could not understand how anyone could as>k the Council to make a road to one house, and Mr Field's was the nearflßß, residence to ib. These petitions ; w } ere brought up by ward members wbo t»e<* push fche work through. , Jervois Road at the insbance ofjrwnar (Jourtonay, against the wish of his colleagues. It had been pointed out to V» lapt week as " Courtenay's folley." Mr McDonald said thab this oonduct Of; the Mayor's was nob as dignified M« should be. Whab was pasb wardofie With. Ifc was to be regretted thab the Mayor baa adopted this course. ... Mr Field: Well do your duty. ■ The Mayor: "I am going to, Theie ; things are shunted by ward members on te ward workmen, .and that is how the money goes. . Mr Field said they did not want worn dono from borrowed money. The Mayor said there were tt»n?houses in Ponsonby thab wanted a roatt to their doors, and which could "f? had bhe road oub of bhe money -mm had beeu expended on both sides _ w The Mayor said he wished to,'showMW inconsistency of persons writing letters about the Council living within its means and then signing petitions for obher wow. | to be done. Mr Courtenay asked whetber.tne ?wr-i draft had nearly doubled eince the Mayor . came into office. , rtfh The Mayor said ab presenb the overdraw | was a little less than ib wa3 when ho toot Office. , „ ,-ri Mr Burton asked whether bhe Council would consult, the citizens before rawing any future loan. - 'ii^M The Mayor said ib was probable tn&» t"0 Council would only raise £11,900. Mr Burton: "You have reliered my - mind. There wiil be really nobhing to »«. a meeting for, unless the Council ,«1«|! n mind. .« The Mayor said there was no danger w thab. „ .»_ The deputation then visited kho Collecwr, in order to colleeb some sbatUblci, wd3 Chairman remarked that the Mayor DfW treated them handsomely.