CITY COUNCIL BUDGET.

Auckland Star, Volume LXVII, Issue 141, 16 June 1936, Page 10

CITY COUNCIL BUDGET.

DEBIT OF £71,886 FACED. INCREASE IN RATES APPROVED. COMPREHENSIVE REVIEW OF FINANCES. An increase in the rates from 3/1 1 in the £ to 3/1 I ■§■ was approved at a special meeting of the Auckland City Council last evening, when the estimates for the year ending on March 31, 1937, were also adopted. The increase has been made necessary as the result of the higher Hospital Board levy. Although rigid pruning of the estimates had been undertaken, it was found necessary to budget for a debit balance of £71,886, as compared with a net debit balance of £65,209 with which the last financial year closed. Provision was made in the estimates for expenditure of £867,977 under the rating accounts, and for receipts aggregating £883,464. The city's finances were reviewed at length by the Mayor, Mr. Ernest Davis, who stressed the necessity for giving the city ""fresh life blood" per medium of the works loan, which is to be submitted to the ratepayers this month, and made an appeal to suburban local bodies to yiew a number of matters of Auckland interest in a metropolitan light.

RIGID PRUNING.

CASE OF ESTIMATES. ESSENTIAL PROVIDED FOR. "BALANCE NOT PRACTICABLE." Factors which have necessitated the Auckland City Council budgeting for a debit balance of £71,880 for the year 1936-37, as against a total net debit balance of £05,209 with which last year closed, were mentioned by the Mayor, Mr. Ernest Davis, when discussing the estimates at the special meeting of the council last evening. As a businessman, said the Mayor, he would prefer a balanced budget, but such a policy was not practicable. The Mayor announced that the rates (including the imposition of the additional halfpenny forced upon the ratepayers by the Hospital Board's increased levy) would be 3/11J in the £ as against 3/11 last year, and on the six rating accounts a debit balance at ilarch 31, 1937, of £35,558 was budgeted for. There would be no increase in the rate for the waterworks account, for which the prospective debit balance was £30,328.. Thus the total, debit balance a t-, March 31, 1937, forecasted would be £71,886.

The rates proposed to be struck wore as follows, tlie fignjres for 1935-30 behig given in parentheses: —General, 1/4} (1/3-J); estimated debit balance of £:!4,704; i library, Id -estimated debit, £1357; hospital, 54"d " (3d)estimated debit of £66; drainage, 3,[d (2Jd); estimated ' debit of £232; interest, 1/8 (1/9), estimated credit of. £994; sanitation, lid estimated debit of £193. The Mayor said he was prepared to begin operations for 1936-37 in the manner indicated, and to make every effort during the year to reduce the leeway, as the council had outstanding in arrears of rates a sum over twice the size of its bank overdraft, and as he was confident that a healthy proportion, of these arrears would be collected during the year. Virtually No Increase. "The fact that virtually there is no increase in the aggregate of the rates proposed to be struck is due to the-rigid pruning of the estimates which has been carried out, I am gratified to record, without recourse to retrenchment of the permanent staff, or at the expense of impaired efficiency or undue curtailment of the service suffered by the different departments," said Mr. Davis. "What we have sought is to provide , this year for essentials only, and to postpone the start of such"-activities as "normally would be regarded as necessary, but which can in the circumstances be classed as not urgently required for the

noxt twelve months. So heavily has the pruning been effected that, with most departments, the appropriations are no longer hut individual 'allocations.' "I recommend that instructions he given to the heads of 5j.1,1 departments in the following direction's:—(a) The total vote to each department must not he exceeded; the individualallocations comprising the total likewise be adhered to; (c) any imcter-expenrii-ture of any -allocation', to be applied otherwise; (d) for any unforeseen expenditnr& must, be. sought from the finance committee" through the committee concerned.*'• "Our commitments a,ra; slich that we should be able to live withiri > ouirmeans, notwithstanding the continuation of the provision made last year for the restoration of wage and salary reductions. At all events, that will be our fixed objective. On the other side of the ledger, tliero is every prospect that our estimates of income will be realised, if not exceeded.

"I should like councillors to realise that the CHtting down process was not a matter of casual overnight thought. The revision occupied the better part of one month, apart altogether from the time devoted to the preliminary consultations. The overhaul was in every way thorough, and I welcome this opportunity of publicly expressing my appreciation to the chairmen of committees for the whole-hearted cooperation and assistance they accorded me throughout." Expenditure and Receipts. The Mayor reviewed the position of the various accounts, -for which he supplied the following estimates of receipts and expenditure for the current year:— Expenditure. Receipts. ' £ £ General account 270.007 202,"m Library account 14.093 14,(180 Hospital rate account ... 57,70*4 57.073 Drainage rate account ... .32,320 34.7.T0 Sanitation rate account . '.15,970 17,300 Interest account 4C>(3,OSi 40^144 Totftls -i* •»• • » •#• •• Sfi7J)77 883 t 4(H ; Mr. Davis" next 'rfre.W' attention to the extent to wliich the estimates of expenditure under various Headings had been •pruned. In connection with the various accounts it was shown that in the general account the principal items of : expenditure were: — Salaries, £31,9603

Fire Board contribution, £10,852; traffic control and : .collection of licenses, £14.440;' maintenance of parks, domains, cemeteries and. reserves, £28,450; Zoo maintenance, £6812; Town Hall, £4000; office expenses. £7000: baths and Sehvyli Domain dressing sheds, £.3271; endowment properties, repairs and charges, £9151; public lighting, £25,950; street conveniences, £4400; streets, £89,850; health and sanitation. £5900; relief works scheme Xo. 5, £2000; town planning committee. £2820; Museum, £2523; Art Gallery, £1854; milk supply to schools, £1870. The estimated receipts included:—Arrears of general rates and penalty, £23,000; rents from endowments, £30,500; Town ITall hire, £4275; licenses, £29,500; fees, £4500; baths, etc., £2750; Zoo park, £4000; rate of 1/41 in the £, £152,925. Works Estimates Reduced. . In tho works account the estimates were reduced .from £108,325 to £143,890. Provision was made for expenditure on streets, £89,850, including £39,000 for maintenance and repairs, £21,200 for tarring and sanding, and £15,500 for cleansing of streets. Relief works were set down at £2000, contingencies £3180, sanitation £18,230 and street lighting £25,950. * In the parks and reserves account the estimates were reduced from £51,828 to £44,290, although no essential services had been curtailed. The principal items of •expenditure were salaries £20,550, lighting £ 1404. Under the heading of forestry £1103 was provided for wages, while £0812 was provided for the maintenance of the Zoo. The expenditure of the town planning committee was estimated at £2820, the principal item being salaries and wages £2385. The expenditure in connection with tho Art Gallery and Old Colonists' Museum was -estimated at £1854 and for the v lihraries £14,993, the principal items in connection with the latter being wages £8271, books £2090, periodicals and newspapers £535. The expenditure of the public services committee was estimated at £39,'650, the principal items being salaried £5650, electrical pumping £2SOO, mains and services £11,400, filtration £7500.