THE CITY'S CHIEF ACCOUNT.

Auckland Star, Volume XLVIII, Issue 35, 9 February 1917, Page 2

THE CITY'S CHIEF ACCOUNT.

ITS POSITION REVIEWED. A SMALL DEBIT PROBABLE. A statement indicative of the position of the city's financial position in its chief working account, the general account, was put before the City Council last night hy the Mayor. In effect, the statement showed that while the receipts to December 31 were in excess of the estimates, there had been large unforeseen expenses which made the prospect of a debit balance in the account at the end of the year of about £3500. That would probably, however, be reduced by repayments from other accounts, and it was anticipated that provision could be made to liquidate the debit next year without undue strain. IMPROVED RECEIPTS. In his statement the Mayor said the receipts for the general account had been in excess of the estimates. The estimates for the year were £135,931, and •the actual receipts for nine months amounted to £123.211. promising a considerable excess over the estimates by the end of March. The general rate was estimated to produce £61.000, and already it had brought in £58,117, and the I indications were that by the end of the 'year it would produce £ 64,000. The sale 'of the 'teach Koad lire station to the ! Fire Board for £3000 had benefited the ; general account by its proportion, amounting to about £3500. : UNFORESEEN EXPENSES. The amount allowed for salaries, etc., ! would be exceeded by about £2000. J chiefly due to the large increasing lia- ; jility' for half-pay to men on active service. The transfer ■..{ the lessees or T'attesOii .Street sections to the new position m WiUesley Street West, and the j unexpected expediting of the improveineiitri to Victoria Park frontages had | involved an expenditure of £1000 not -.-rovidiil for this year, while there was further excess over estimates due to the expedition of the completion of Myers ; I'ark round the kindergarten, and by work in Xihotupu and Titiranpri Parks, where the excess was about £400. The final payment on the Kilbryde property, I'arnell. of £2750 had also been overlooked in the estimates. Another £1000 excess had been involved in improving the condition of the endowment properties which fell into the Council's hands. STREET WORKS. His Worship pointed out that of the estimate of £40,170 for street works and maintenance £22.254 was expended in the first six months, which necessij tnted a curtailment of expenditure, and a revised programme which was being carried out to bring the expenditure within tho estimates. In Remuera district the straightening of Vincent Road, and improvements at the corner of Re- ! muera Road had cost £1,000 more than j bad 'leen anticipated, while the purI chase of Rangitoto quarry (about six [ acre-) at Remuera for £2,100, was an i unforeseen payment. In the Art GalI lery improvements the loan money had I been exceeded by aliout £600. The j position summarised was that in all 1 thore was a prospective debit balance j for the year in the general account of about £3,500. THE OUTLOOK CLEAR. His Worship continued: — "An important point "which has a I direct bearing upon general account will be the matter as to how the Council will deal with the various market accounts. General account to date has provided a considerable sum for rental of the main market site. There are also initial expenses and subsequent debits in connection with the fish market. If it is decided to open separate accounts for the markets from the outset las may be best, a credit to general I account for the amount advanced since I commencement would then be due. I trust the above will make the position cl*ar to Council. It should be borne in mind that these fi-rures relate only to general account. Taking other operations of the Council into consideration, the total receipts are expected to exceed £400.000 for the year to end March 31st next, which will be a record. It will be clear to Council that with a business of this divers-ness, the estimates, while being closely followed, can be primarily for guidance only, and that throughout the year there are bound to arise miscellaneous it-Tms which demand attention and further financial provision. As to the anticipated debit •ballnee in general account. If you approve, provision will be made in next year's estimstes to liquidate it (see foregoing reference to market accounts). This can be effected without undue strain. Tn the current year's estimates extraordinary items and improvements of a non-recurring character, for wliich financial provision Vs to be made this year, totalled no less a sum than £11,400." THE POSITION SATISFACTORY. Respecting other finances, Mr. Gunson reported:—"ln addition to the general account, also other accounts, there are the loan accounts quite distinct, and in which the Council's operations are still extensive, particularly when regard is had to works such as Jcrmyn Street (the financial statement submitted reI cently represents th** position to Febru- . ary IS), the city markets (for the -markets full financ : al provision is made, which will constitute no charge whatever upon the rates or the special rate for : nterest or sinking funds, as | the markets are self-supporting with a prospective balance to credit), drainage, and streets improvement loan. In the streets imprivement loan, for the information of Council, it may be mentioned that there is a credit balance of £20.846, which the Works Committee propose to ask Council to allocate as under:—Park Road in concrete £2.000; Quay Street continuation (over railway shed site) in concrete £3,000: the balance, £15.846, will be available for Beach Road. " From a financial point of view it should be noted that if concrete roads should prove successful, an enormous financial saving will be effected, as the Council's ability to carry on permanent road paving will be increased 100 per cent. In other words, where one mile of asphalt or wood blocks can be laid, two miles of concrete paving could be laid for approximately the same expenditure. In respect of the special accounts of the Corporation, such as water, electricity, etc., it is not necessary at this juncture to submit any detailed statement other than to saythat tbe returns as at the 31st March next will be found to be satisfactory, but it is important that the position in regard to general account should be well controlled, that being the account that calls for constant supervision. In all the other accounts, including the interest and sinking fund accounts, once the figures have been fixed at the beginning of the financial year, they really take care of themselves for the period. To all these your attention will again be directed in April next,"