SOUND FINANCES.

Auckland Star, Volume LXVII, Issue 238, 8 October 1936, Page 16

SOUND FINANCES.

ONE TREE HILL AREA.

STATEMENT FOR SIX MONTHS.

GOOD RATE COLLECTION.

"The position of the borough may be stated to be particularly sound. Revenue is buoyant and it augurs well for the future progress of the borough," said the Mayor, Mr. I. J. Goldstine, at a meeting of the One Tree Hill Borough Council last evening, in commenting on the statement of accounts for the six months ended September 30, which was presented by the town clerk, Mr. A. Leese. Mr. Leese stated that the total expenditure for the half-year, exclusive of Scheme 5, recoverable subsidised wages and trust accounts, was £19,082, or 58.7 per cent of the total provided for the year compared with 51 per cent at the same period last year. This was entirely due to the fact that the year's programme of permanent work was started much earlier than usual, and was, in fact, now approaching completion. The actual public works expenditure for the half-year amounted to £8931, but after deducting recoverable wages under the subsidised works and No. 5 schemes (£1423), the iiet expenditure under this heading amounted to £7508, or 73.5 per cent of the year's allocation of £10,211, thus leaviii" £2703 unexpended, to which mi"ht%e added a further sum of £300, be hi"' revenue for licenses and Government subsidy in excess of the estimates under those headings. Need For Care. As the present wage bill for street works is £80 per week," added Mr. Leese "no less than £2080 of the available balance is required for wages for the balance of the year, not allowin"' for any increases which may be ordered by the Arbitration Court, leaving only £020 for materials, lony hire etc. It will readily be. appreciated, therefore, that the council wrtll not be able to undertake any additional permanent works after completion of tho present programme; in fact, ve y great care will need to be exercised durinf the remainder of the year, if < deficit is to be avoided. This position lias arisen owing to the fact of the permanent works carried under the subsidised wages scheme exceeded the estimated cost, several of them by a very considerable margi . A considerable improvement was revealed in the collection of rates both [n respect of those for the current year and arrears. Fifty-eight per cent of the current rates had been paid, compared with 53.1 per cent for the corresponding period last year, and the percentage of arrears collected had risen from 41.7 to 47.3 per cent, a very satisfactory position indeed. The rate collection (including arrears and penalty) amounted to £14,591, as against £13,103 for the first six months of last year. Revenue from licenses and miscellaneous sources showed an upward tendency, and would exceed the estimate by at least £300, while cash receipts for the sale of water for the half-year totalled £2780, compared with £2965 for the corresponding period of last year. The reduction was due partly to the abnormally wet summer, and partly to reduced chaiges for water for commercial purposes. With the exception of public works, said Mr. Leese, the estimates were being closely adhered to. The total receipts for the six months from all sources, excluding trust accounts, reached £22,089, compared with £21,804 for the same period last year, while payments, also excluding trust accounts, totalled £19,550, as against £18,008. The main items under the headings of receipts and expenditure (the figures for the first six months of last year being given in parentheses) were as follows:—Receipts: Rates (including arrears and penalty), £14,591 (£13,103); water sales, £2780 (£2905); licenses and permit fees, £1412 ( £881); petrol tax, £928 (£071); relief and subsidised wages refund, £1440 ( £3354) ; and miscellaneous, £920 ( £830). Payments: Public works and sanitary contracts, £8415 (£8121); interest and other loan charges, £4271 (£4291); waterworks (excluding loan charges), £2043 ( £1404); hospital levy, £1850 ( £1700); drainage levy, £855 (£837); administration, £585 (£597); and miscellaneous, £1531 ( £1058). "Position Thoroughly Sound." In conclusion, Mr. Leese said that all accounts were in credit, the net total of revenue accounts being £10,624, compared with £11,505 at the corresponding date of last year, a reduction of £881. The council having budgeted for a net reduction of £945 in the total credit at the close of the year, the cash position might be described as thoroughly sound, particularly in view of the very substantial amount of permanent work undertaken during the period under review. "I don't think any complaint can be found with the position disclosed," said Mr. Goldstine in moving the adoption of the statement. So far as public works expenditure was concerned, however, a timely warning had been given. A considerable amount of money had been spent, but an astounding amount of "permanent improvements had been effected. In seconding the motion, the deputyMayor, Mr. C. L. Slyfield, said lie thought the ratepayers would be convinced that they were receiving value for their money. The statement was adopted.