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CITY COUNCIL FINANCE.

More explanation than was given yesterday of the situation in which the City Council finds itself at the end of the financial year is due to ratepayers, and the Town Hall authorities will be in a better position to give information when the rating account has been finalised. The position is that the district fund has been overdrawn, and that by law the council is not permitted to carry a bank overdraft greater than the amount of the uncollected revenue. It was stated yesterday that the amount of overdraft on March 31 would be approximately £50,000, and it was decided to raise £90,000 (presumably including the £50,000) by the hypothecation of debentures. The amount of outstanding rates is a very important factor in the situation. The Christchurcli return shows a total of £31,000. We should say that the amount unpaid in Auckland would be at least £50,000. What is the extra £40,000 needed for? It may also be asked whether such a heavy deficit in rating was foreseen, and whether any preparation was made against it. The Government is not likely to accede to the council's request for exemption from the law regulating overdraft, unless the Council can present a special case of great strength. Expenditure on unemployment is advanced as a reason for such treatment. Let the Council state exactly what has been so spent and the special circumstances of the spending. It is quite clear that exceptional care will have to be taken with the city finances in the coming year.

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https://paperspast.natlib.govt.nz/newspapers/AS19310326.2.34

Bibliographic details

Auckland Star, Volume LXII, Issue 72, 26 March 1931, Page 6

Word Count
256

CITY COUNCIL FINANCE. Auckland Star, Volume LXII, Issue 72, 26 March 1931, Page 6

CITY COUNCIL FINANCE. Auckland Star, Volume LXII, Issue 72, 26 March 1931, Page 6

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