CITY FINANCE.

Auckland Star, Volume LI, Issue 115, 14 May 1920, Page 7

CITY FINANCE.

ANOTHER REVENUE RECORD.; PROFITABLE UTILITY ! SERVICES. ESTIMATES FOR CTJRREUT TEAR. HALFPENNY INCREASE PROPOSED HEAVY HOSPITAL DEMAND. The estimates of receipts and expenditure for the current financial year were presented to the City Council last night by the Mayor. In doing so he remarked that the total gross revenue" for the past year constituted a fresh record in the city's finances, having exceeded £720,000. ■ All accounts were in a satisfactory position, credit balances existing in most instances, and in the few cases where debit balances appeared there were sound reasons for them. The year ended with a credit balance of £10.142 on the general account. The two principal trading accounts of the corporation, waterworks _»nd electricity, were in a satisfactory position, the cash balances being £102,022 and £73.105, respectively. The former was set aside for the Nihotupu impounding dam, and would all be absorbed for that purpose within the next three years, provided the work proceeded as anticipated. The latter would be absorbed by liabilities already incurred in the purchase of materials for authorised extensions. The credit of £28,862 in the consolidated loan, 1914, 'was for drainage. A large amount of this would be expended during the current year. A SOUND GENERAL ACCOUNT. The work of the, year, of which one month had already elapsed, 'had been arranged in accordance with -he estimates, and any' further increases in wages or rise in .the cost of materials could only be met by (a) increase in the rate, or (b) reduction of work or services as the case might be. It was estimated, said the -Mayor, that last year the general account would close • with a credit, balance of £3.100, but notwithstanding excess expenditure in several it.m., the credit balance was £10,142. This gratifying result was due primarily to _u~e.tajn.ial increases in revenue under several headings, such as! rent of Town Hall, increase in license fees, and increased arrears ofrate; also on the other side,'to-lesser expenditure than estimated in several of the adminis•trative items. Last year a general rate of 1/6. was struck and it was estimated to produce £80,700, It actually produced £81,091. The arrears of the rate and penalty produced £0174 as against £4300 estimated: The general account estimates, as framed for the current year, were on the assumption that the same rate as last year, viz. 1/6} in the £ -would be struck, and show a prospective credit balance of £4,636 at 31st March, 1921. Parks and Reserves estimates had been increased from' £14.000 to £ 15,130 to provide for certain small repair work* at the Domain Gardens and also the purchase of some necessary plant. Towards the liquidation of the old debit balance in Markets-Account accru: rng from 19/13, owing to the heavy rental for the site with no receipts, it was proposed to a-sk the Council f o appropriate this year £2000. With regard- to the Works Committee's vote, the sum of £67,-00 was spent under all headings last year, which was' exclusive of the amount set aside for special works. As against such amount of £67,600, there was thi. year provided in the estimates £80,445, and in. addition the aum of £10.000 was allocated under special works for certain works in progress and liabilities, including the purchase of two motor trucks and also £500 on of the Council's liability for .the.Whan bridge. A heavy burden had been placed upon the account by the* constant and substantial increase in wages and the rising cost of all primary materials lor street . works. This, olyiously, bad hindered the Council's progressive .policy and. still called for a slower pace than otherwise would be possible.

PROFITABLE WATER BUSINESS. The "water account was in a satisfactory condition, the credit balance, at 3l»t March, 1920, being £102,022. The estimated credit, balance. at -31_t March,. 1921, after full provision for all liabilities, including due payment* on account of the Nihotiipu Impounding Dam (both the auxiliary dam and Langland's contract), was i 89,900. All the liabilities in connection" with Langland's contract, and also the auxiliary dam, could be met from this account, and at the end of the third year, _fter provision: for the'usual annual transfer to general account, and anticipating revenue being maintained, it'was estimated-it .would show' a credit balance of £11,000., ' LffiRARY .ACCOUNT IN DEBIT. The debit balance in the Free Library account, due to the purchase of i the Epsom Library . property; wae £1,246, and the estimated debit to be carried forward at the end >of this year was £1,200. ' A HEAVY BRAKE. The hospital and charitable aid account was the worst, one that the Council had to meet this year. The.rate for hospital and charitable aid alone, notwithstanding the increase in valuations, had to go up from. 3d to 3d. The contribution, including Grey Lynn area, for 1920-1921 was £25,513, an increase . of £7,501. A debit'balance, of £-.193 •was brought / forward in this Account, and the estimates showed a prospective credit balance of £1,950 as "at March 31, 1921. ; The Auckland Drainage Board rate of 4d would produce all that-was required, and leave _ credit' balance of £639 at the end of the year. •'-..' :;;;■ INTEREST ACCOUNT. ■■ It was gratifying to be. able tb report tfhat the interest account -was in a eatia factory condition, and that the, credit balance of £17,495 in hand on April 1 last might be safety, reduced. This had been done in the estimates'; with the resuit that of the special rate of . 1/3 struck it would thie year be sufficient if 1/1 were collected, enabling the Council to give the ratepayers some relief from Other heavy demands. . ' HALFPENNY INCREASE IX. RATES. Notwithstanding the necessity of -WW increase of 2d in the hospital and charitable aid rate, the position of the other accounts was such:-that the council was nWe to afford its ratepayers some "relief, having regard to the increase _n valuations. The.total rate to be struck aw proposed this year would be 3/8 in the ■ £ annual value as against' 3/7. laat year. The following were the proposed rates as compared with ■ last J**r'ji rates, shown in parentheses: —General, rates proposed 1920-21, 1/6.. (1/6_):| hospital, 3d (3d); ,s*nitatiop, 2Jd_ (2_d); library Id (Id);. Drainage Board- [<;Jk\ - («d);'_pe.ial interest, 1/1 (1/2) ;>tot«V .3/8 (3/7_). " :•;.-„" "'" ; '"•' '

SATISFACTORY LOAN ACCOUNTS. The loan issues of the council were in a satisfactory position. Sufficient money had been raised in all loan accounts to meet the entire obligation, of the current year. £25.000 of the Grey Lynn streets loan of £90,000 had just been raised, and this amount was lying to credit. The old consolidated loan for drainage had been raised entirely, and -28,-00 was in hand, and should be expended as oneedily as was economically possible. Of the streets improvement loan of £165j_00 recently authorised £80,000 had been raised*to date, and of that £90,000 was raised last week to provide money, for the street paving works for the current year. There was a balance of £17,000 of unissued tramway loan debentures, which wae being sold over the counter. In view of the difficulty of building the council was rec--—nendn-j to delay action in connection with the crematorium vote of £4000. The Grey Lynn housing scheme wb_ proceeding and arrangements were being made for. the loan of £10,000 from the Government. This would cover all liabilities, and with the erection of the ten houses there the council would better be able to judge what its policy for the future should be. NEW ELECTRICITY LOAN Proposals would be submitted to the council for the electricity loan poll for £500,_©0 at. an early date. The urgent need for furiier extensions at the city electrical station warranted immediate action. GREY LYNN AREA. Adjustments had, as in previous yean, been made' between the special accounts and general account, so as to bring the total, of the Grey Lynn area- rates as near as practicable to that of last year. Ah the proportionate hospital - and charitable aid contribution had been increased to £1508, it was necessary to raise the rate to 3-10ths of a penny in the £ on the capital value. A new special rate appeared for the first time for interest and sinking fund on the £90,000 streets and drainage loan. A rate of 2!d on the unimproved value would be struck, but a collection of l_d would, owing to a portion only of the loan having been placed, be sufficient for this year's 'requirements.. THAT HOSPITAL RATE. Commenting on the estimates, the Mayor pointed out that the very satisfactory position of the general account was largely due to the Council adhering rigidly, to its policy in connection with the Town Hall rentals. In addition the licenses had brought in £2500 above the estimate, and the fees £800 more than was expected—both indications of how tremendously the business of the city had expanded after the war: The Works Committee had last year kept the expenditure down to £400 below the estimate, but this' year the estimate had had to be increased from £68,000 to £80,000. On this point Cr. Baildon, chairman of the Works Committee, stated that owing to the increased wages and cost of material, ratepayers-would not get more for the £80,000 this year, than they had got last year for £68,000. Crs. Bloodworth and Savage suggested that if increased cost of labour and material was such that even with the larger outlay the road-works could not be maintained up -to standard, it was the proper thing to say so boldly, And rather to jlevy a higher rate than practice a false economy that would have to be paid for more heavily later in depreciated road works. Crs. Bagnall, Baildon,..and Nerheny replied that the. estimate was sufficient to keep the street works to a safe standard. ' i

Oh the suggestion of Cr. Entrican that it should be made plain, to the .ratepayers that the Council must meet an increased demand of 2d in tbe £ by the Hospital Board, by adding only id in the £ to the rates, the Mayor said he thought he had made that point clear. The position was that as a result of the careful conservation of funds the Council was able to use the balances built up in the several accounts to preserve financial stability as an offset to the unexpected rise of 2d in jthe £ on the hospital rate, and to.relieve the fatepavers of l.d in the I on that demand.

Cr. Mackay in moving the adoption cf the estimates w and congratulating the Mayor and the Treasurer on their statement '■ o* the accounts, mentioned that the Hospital Board, of which he- w»«'a member, had been faced with the difficult position of an increased expenditure nnd a correspondta? decreased grant from the Government, according to a peculiar scale of grants recently introduced, with the result that the Consolidated Fund had been relieved at the ex»»"nse of the local bodies.

The estimates were adopted, and notice was _tv«i that the rates as enumerated would be struck on June 10.