THE CITY FINANCES.

Auckland Star, Volume XXXVIII, Issue 135, 7 June 1907, Page 3

THE CITY FINANCES.

ESTIMATES OF REVENUE AND EXPEXDITURE. SPEECH BY THE MAYOR. The estimates of receipts and expenditure for the current year in connection with the city's finances were laM on the table of the House of Representatives yesterday afternoon. Following are the principal items:— ESTIMATED EECEirTS.

The Finance Committee reported: The committee went through the estimates as ■submitted with amendments. Kesoived: (1) That the items new baths £4000, standard survey £5000, and new depot £5000, be deleted from the estimates to be provided for by loan, not out of rates. (2) That tne full anticipated receipts from the Fire Biiga<le Board be included in the estimate, (3) That no sum be placed on the estimates this year for purchase of further pictures for the Art Gallery. Resolved further- (1) •Ihat the estimates of receipts and expenditure as amended be adopted by the Council. (_) Ihat the following rates too struck for the current year on the ratable property in the city, viz.: A general rate of lid in the £, a sanitation rate of 2d in the £ a hospital and charitable aid rate of 3d' In Ihe £, a horary rate of _d in the £ Water £12 S io/° _, a f rata , W ?o ralue u °t exceedinf Sv. a ,^ ate of 10/: °» a ratable value r.To 5 .. I0 " bnt not "ceding £]<->, a rate of 2A per cent, with a minimum of W; on a ratable value over £100 a rate of 2 per cent: on all buildiugs 'used as o ,IT _F wareh i'° a * «r *>r any put-pos" other than as dwelling houses which - not snpphed by meter, a rate of 3 per cent on all lands aud buildings to whlfh water can be but is not supplied, situatei «wltW_ 100 yards from any part of the water works, a rate of i per cent. *ater-

SPEECH BY THE MAYOR. Speaking to this report, * which was adopted, the Mayor said that the balance in hand on waterworks account on Ist April, 1907, was £34.545 4/H. the estimated receipts were £33 050 making a total of £ G7_>9s 14/11. 'The estimated expenditure, including £23,637 6/11 transferred to general account, was £52,657 6/11, leaving an estimated credit at the end of the year at £ 14.90S 8/. In charitable aid account the receipts were estimated at' £350 more than last year, and the expenditure at making a total improvement of £710. After wiping off a debit balance of £210 with which the year commenced, it was anticipated that at the close of the year there would be a credit balance of £446. There was one item, however, the proportion of expenditure on infectious diseases, which it was impossible to estimate close!.. consequently it would not be wise to make any reduction in the Hospital _nd Charitable Aid rate for the coming year. Amongst the receipts in the Sanitation account would be noticed _ new item oi £550 for burning traue refuse, sales of old material, and rent of mortar mill, which goes to show that now the destructor was in full working order it was able to earn something towards the cost of working. When the electric hght was fully installed the receipts will be further augmented by the value of the power generated in the destructor, but this had not been taken into account for the coming year. The expenditure side showed an increase of some £230 in the cost of working; but this was more than accounted for by the item of £300 for new plant. The quantity put through the destructor was increasing every week, so that the cost of working could not very well be reduced; a rate of 2d. in the £ was therefore necessary for the current year. On the public library account the year commenced with a" credit balance of £456, and the receipts were estimated at £1925, or a total of £2381 available for the coming year. The expenditure in sight for maintenance, books, and periodicals, was £ 1578, leaving a. bal-! •nee of £803. This would enable the! I_i___jy Committee.tc. cany/out some

much-needed improvements in the. condition of the reading room by sloping the bank back from the wall and thus admitting more light and air into the room, and improving the drainage of . the basement. The stock of books would also be considerably replenished; and, taking these factors into consideration, it seemed advisable to continue the library rate for the coming year at the same "amount of id. in the £ as hitherto. LOANS. The indebtedness of the City at 01st March, 1906, was £1502,200. The loans issued during the year ending 31st March, 1907, had been: —On account of waterworks extension loan of £150,000, £120.000; balance of refuse destructor loan, authorised 1901. £700: refuse destructor additional loan, £SOOO, total £128.700. Gross indebtedness at 31st March, 1907, £730,900; less sinking funds accrued £104,375; net indebtedness, £626,525. The amount standing to the credit of tramway profits accounts on the 31st March, 1907, which it was proposed to utilise as a sinking fund, was £6536; and if this be also deducted it leaves the net indebtedness at £619,989. The following loans were authorised but not yet floated: — Town Hall SO.OOO Victoria Park (additional! 2.000 Electric light (first Insta'mclTt)... £r..n00 Grafton Bridge '. 30.000 Abnttoir 26,000 Balance of waterworks extension loan 30,000 Balance of loan authorised by "Auckland City Borrowing Act 1899" 10.000 £203,000 Present gross Indebtedness 730.900 Prospective gross indebtedness... 933,000 Regarding the loan of £10,000, he might say that it was contemplated to float £9000 of this to pay for the Freeman's Bay sewer. It was not, however, likely that all of these loans would be floated this year; and hy the time they were all floated the Increase iv the valuations, in conjunction with the revenue from the Town Hall and the electric light, should be sufficient to provide for the interest on tlicm without increasing the rates. All the loans with the exception of old loans amounting to £153,000 carried a sinking fund. It was, he thought, unfortunate that no arrangement was made for a sinking fund when these loans were floated, as it was obviously sound finance to provide such a fund, by the accretion of which, together with the accumulated interest on it, loans are. so to speak, automatically extinguished; and in regard to these old loans not carrying sinking fund it was contemplated to charge water account with sinking fund on the water loans included among them, 'amounting to £25.000, and to alocate la portion of the Council's share !of the tramway profits as a sinking fund on the remaining £ 128,000, thus placing them on the same sound footing on the rest of the loans. It was also proposed to provide from the same i source for the sinking fund on the Town : Hall. Grafton bridge, destructor addiI tional. and Victoria Park additional [loans, amounting in all to £120,000. Taking the sinking fund at half per cent I the annual amount required from trautj way profits for the old loans would be £640, and for the new £600. in all I £1240. The amount required to establish a sinking fund cm tbe £ 128.000 m" old loans in respect of the years which 'had elapsed since they were floated was about £4000; so that the above-men-tioned amount' of £053<T standing to credit of tramway profits account is more than sufficient 'for the purpose. ASSETS. j Against the present indebtedness of the city there are assets valued as fol-, lows: — i Waterworks £333.181 City endowments 202,900 Improvement trust 104,020 Domain trust SO.OOO Punakitere block 1.050 ' Machinery, plant, stocks, etc 5.200 Free Public Library, Leys Institute and land, and old public library 31.325 Old abattoirs and plant ln.oo-.l ! Baths 7.000 Fire stations, land, plant, and appliances •• 15.400 Office furniture, plans, and surveys 7.335 flocks 800 CeniPten- Bridge 601 Town Hall site 14,2ii:i Li t i-ines 3.'t>26 Bayfield Park 1,673 Victoria I'ark 10,000 Refusp destructor 10.000 Electric plant 1,046 000,912 Underground drainage 2-30,000 There was thus a considerable surplus of assets over liabilities, and this surplus would be little, if at all, affected by the increase.in the indebtedness caused by the floating of the various loans in contemplation, since the expenditure of. the moneys thus raised would create fresh assets. It must not be forgotten, moreover, that on the expiry of the preI sent leases of the city endowments, the revenue would be considerably- increased.

To sum up: by transferring £23,637 from water account (in which connection it should be remembered that this account had never been charged with the full amount of interest payable on water loans. £11,694), the estimates submitted provide for the expenditure of £40,000 for the maintenance and improvement of the streets under a competent engineer. £2000 for street li<_iting, £5000 for the maintenance and improvement of parks and reserves (including Domain and Cricket Ground), and for the following items in the way of extraordinary expenditure: Purchase of pictures at the New Zealand Exhibition, £500; improvements at the Albertstreet baths, £500; additions to the morgue, £500 tunnelling- at Nihotupu, £1450; on account of supplementary trunk water mains, £5000; on account of new reservoir to replace the one fallen in at Ponsonby, £5000; and interest and sinking fund on the YVaitakerei extension loan, £6225, although the city was not yet receiving the full benefit of the saving through the cessation in pumping. The programme 0 f >yor k for the year also included the expenditure of ,_9OOO on the Freeman's Bay sewer and. if a loan for the purpose was sanctioned by the ratepayers, the erection of baths at Shelly Beach. Ponsonby. estimated to cost £4000. and of a new'depot and stables, the estimate for which had not yet been prepared. These works had been provided for without increasing the rates, and he thought they might claim that we ai-e pursuing a progressive and prudent policy, and keeping the municipal administration in line with the general advancement of the city which had resulted from out continued pro-perity. SA_OTATIO_7. With regard to the other matters which would claim the attention of the Council during the coming year, he would like first to say a few words respecting a question on which the public mind ha_ of late been considerably exercised he meant the sanitary condition of the city. On this he pointed out that (I) the ni K soil service was about to be placed on »____. more satisfactorj than ever

before, as the Council had already arranged for the purchase of their own depot. (2) The amount of £4216 had been allocated as expenditure on the removal and destruction of house refuse, so as to allow a margin for extending the present sen-ice, and making it more frequent: and that all refuse collected was thoroughly burnt, instead of being tipped into various gullies, as was at one time the practice. In this connection, every householder was being notified to provide proper galvanised iron dust bins, and it was the intention of the Department to proceed against all those not complying with the by-law in this respect when all the notices have been sent out. ■ (3) Owing to the system of inspection of all new drainage work or additions to existing drains, the system of drainage throughout the city was being brought into conformity, with modern requirements. (4) Larger amounts were being set for street watering by electric sprinklers and street scavenging, so as to allow of this being more efficiently done than has been the ease hitherto. (5) Modern and properly fitted sanitary conveniences were being erected in various parts of the city, in place of obsolete and insanitary ones previously existing. (6) The Council, after having given the matter their careful consideration, were now taking the necessary steps to carry out a comprehensive scheme of sewerage for the whole city. This was undoubtedly the most important work, after the provision of a pure and wholesome supply of water, which the city could possibly undertake for the health and welfare of it* inhabitants. The Council had adopted the, recommendations made by Mr Midgley Taylor and endorsed by Mr Bush for the immediate prosecution of this undertaking, and a conference of representatives of the various local bodies interested was shortly to be held, and arrangements made for the introduction of a bill into Parliament to enable the Council to take the necessary land for the purpose of the treatment of sewage near the outfall at Okahu Point. He trusted that within the next few months a contract would be let for the first instalment of a comprehensive drainage scheme. With this commenced,the burning of all rubbish at the destructor, electric sprinklers for. the abatement of the dust nuisance, meat killed at up-to-date abattoirs under Government supervision, all abundant supply of pure water, and a competent sanitary staff, with an increased expenditure for more regularly and"efficiently collecting all rubbish, "they might look forward to seeing Auckland not only the most prosperous and beautiful city m the colony, but also the cleanest and healthiest.

He could not but regret that the contiguous local bodies hesitated to take the necessary steps to join Auckland cit}-. and thus bring under one administration a district which was one in its nature and interest*, instrad of retaining the present division by imaginary and arbitrary line...

Mr Parr doubted whether the £40.000 contemplated would be sp.-nt on streets. This seemed extraordinary. Eight years ago, when he entered the Council, it was £10,000. He wished that the committee had left the £4000 for the Ponsonby baths in the estimates, instead of appealing to I lie ratepayers for so small a sum. He was afraid that the item would be jeopardised if asked for from loan. He moved that the amount be provided out of current expenditure.

Dr. Stopford- said that Auckland was abominably served Ln the matter of baths, and if they could not yet godliness in Auckland, they at . least might have a little cleanliness. He would like to see a complete system of baths adopted, and suggested that perhaps some of the Savings Bank surplus would be available

Mr Sineetcn pointed out that no p_bvision was made for Waikuniete Cemetery, beyond maintenance. He thought that the £250 allocated to the Victoria Park above that allocated to the Domain and Albert Park should be given to the cemetery.

The Mayor pointed out that .the £550 already allocated to the cemetery included the tarring and sanding of paths. This would allow the improvement of the cemetery on present iincs. The Mayor said that the item had beeii struck out owing to heavy demands on other accounts. A total of £23,000 had been appropriated from the water account, and this still left £15,000. so that there would simply be a reduced balance if the cost of the baths were taken from current expenditure. He thought the ratepayers woul dapprove of the loan for the baths if it were submitted to them.

Mr Parr's motion was agreed to, and the estimates, as amended, were adopted.

£ s. d. Arrears of general rates and penalty 180 0 ° Government subsidy on general rate 450 0 0 Rents from city endowments 9,500 0 0 Licenses ' 5-«00 O 0 Abattoirs, fees and rents.... i50 0 0 Fees (building, inspection, hoarding, etc.) S00 0 0 Albert-street baths 300 0 o Customs-street baths . .■ 100 0 0 Fees and fines from Government '. 100 0 0 Branch drains, sales of old materials, and various credits of streets 2,000 0 0 Oflice expenses, charged various accounts 400 0 0 Fire brigade (rents, etc.) 1,030 0 7 Reimbursement from abattoirs loan 0.703 12 4 Do., from Town Hall loan 14.203 » 4 Do., from Grafton bridge loan 791 13 11 Do., from electric lighting loan l.«79 6 5 Do., from Victoria Park loan 143 8 5 From other sources not enumerated 730 0 0 Balance, or additional sum required 45.001 10 5 £00,S23 10 5 j .. . -.-: A general rate of lid iu the £ on the total rateable value of the property on the .valuation roll, viz., £474,690, would produce 21,756 12 6 Less probable arrears 300 0 0 Leaving to be provided from water account 23.635 6 11 £4.5.091 19 o ESTIMATED EXPENDITURE. £ s. d. Debit balance. March 31, 1907 23.323 10 5 Salaries and allowances 5.000 0 0 Clerical assistance 100 0 U, Office expenses (including legal expenses. printing. stationery, general insurance, audit, etc.) 1.675 0 0 Do., painting, rppairs. ami improvements to Municipal Buildings 300 0 0 Art Gallery 200 o 0 Do., pictures purchased at Christchurch Exhibition 500 n 0 Abattoirs 200 0 o Public Health 600 0 «J Albert-street Baihs 450 0 0 Dp., improvements 500 0 O Custom-street Baths 200 0 0 Elections (£200) and licensing (£160) expenses 130 0 0 Fire brigades' maintenance. 1st April to 31st May. 1907 610 0 0 Do.. 31st May to 31st March. 1908 (say) 2,000 n o Fire .brigade (Menzie's compensation) 673 0 0 Dog registration 200 (1 0 Albert Park 1.000 fl 0 Victoria Tark 1.000 fl 0 Western Park 400 n o Bayfield Park 2<X> 0 0 Waltakerei and Nihotapu Parks 100 0 0 Reserves 100 0 0 E-xtrnordinarv expenditure. section 139, M.C. Art. 1000 100 0 0 Market expenses .. , 130 o 0 Morgue, additions" 300 0 0 Town and Library clocks 80 0 0 City endowment charges .... 250 0 0 Purchase money for ntghtsoll depot and plant 2,800 0 0 Proportion of vehicle and drivers' license fees to other boroughs (two years) 550 P 0 Sinking fund 1.364 0 0 Street lighting*' .. .g . 2,000- 0 u Street maintenance (credits £2000, against this) 24.000 0 0 Street works, authorised and iu progress 11.376 0 0 Do., contemplated expenditure on t.ew works 4,624 0 0 Transfer to Domain trust account (say) 1270 0 0 : Do.. improvements trust account (say) ton o o Other expenses 736 0 0 £00,825 10 5 !