BUOYANT STATE OF BOROUGH FINANCES

Bay of Plenty Times, Volume LXV, Issue 12303, 17 April 1937, Page 3

BUOYANT STATE OF BOROUGH FINANCES

excellent REVIEW PRESENTED TO COUNCIL BY TOWN " CLERK- NEARLY ALL ACCOUNTS IX CREDIT. SPLENDID RATE COLLECTION.

CONGRATULATIONS EXTENDED BY COUNCILLORS

The following report was presented nv the Town Clerk, Mr R. B. Shearman, to this week's meeting of the Borough Council. 1. ACCOUNTS 1030/7 (n) General Account n’he General Account, which in--I.Y, streets, endowments and other major works, closed with a credit balance of £1715 compared with £i;7o for the previous year. This account shows heavy GxpGn~ rtiture during the year, including £5940 on streets (but not includtntr £ISOB contributed by Scheme 5); Editions and alterations to the muniaioal buildings to provide new oflices, £ 1400. This work is now completed with the exception of a few details and is giving satisfaction both to the public and the stalf. Lot 92 was purchased during the year at a cost of £787 for the combined purpose of a site for ladies’ rest room, witli provision for using .the existing building, Foresters’ Hall for the St. John Ambulance Association. . , . . . ~ An item of special interest m the year’s accounts is the lease of the Town Wharf from the Harbour Board at £l9O P er .vear. When this pier is developed it should prove one of the most popular and valuable of the borough enterprises, and may eventually compare favourably with some of the piers so popular in Britain. The Aerodrome Account appears . on the balance sheet for the first time this year, with an amount of £4 8 for preliminary costs. The receipts under General Account include £I,OOO for sale of part Lot 163, Section 1; motor drivers’ licenses £304, compared with £176 last year; heavy traiiic fees £498 compared with £342 last year. Rates will be dealt with at a later stage in this report. (b) Electricity Account The receipts from sale of current were £23,487, an advance of £1,301 on last year. The working expenses at £8,015 against £5,551 reflect the effect of recent legislation on the wages bill, and mounting costs generally. This will materially effect the account in the ensuing year, and guarded consideration of any projected alteration in tariff is indicated as the full effect of rising costs was not felt in the past year. Capital charges, including Strand lighting, distribution and proportion of cost of office, etc., totalled £4,330. A contribu- : lion of £I,OOO was made to the Depreciation Fund, which now stands at £6;970. The Reserve Fund totals £10,862. The account closed with a credit balance of £4885. Heavy commitments for interest and repayments of principal in April and May will however, absorb the greater part of this. (c) Water Account This account shows a deficit' of £977, Including £393 advanced to the Water Loan Account in anticipation of the 10 per cent, additional . loan. The deficit is partly due to extensions to the mains £477; contribution to the interest on the new £21,000 loan, £1050; and also the estimated revenue from rates and charges was below expectation. Receipts should materially' improve during the ensuing year on account of the large number of new connections both inside and outside the Borough and to increased sales of water by meter. The water rate produced £987 against £825 last year. The water by meter, £6Ol, is an improvement of £155. (cl) Town Hall Account This account has not yet recovered from the transfer of £325 made under Section 128, Municipal Corporations Act, In the 1935/6 accounts, and being its proportion of the Council’s Fire Insurance Fund. The account opened with a debit balance of £IOO, and closed with a debit balance.of £9O, thus reducing the deficit by £lO, although £BS was expended on capital works. (c) Abattoir Account This account is in a satisfactory position, although the receipts are £23 less than last year, owing to the charges having been reduced. The credit balance is £ 252, being £24 less than the previous year. (f) Drainage Loan £730/1931 There is still a balance of £73 available in this account for expenditure. This is on fixed deposit at the Bank. (g) Waterworks Loan £31,000/1035 The whole of this loan la now over-expended to the extent of £393, but as the Council has decided to raise the additional 10 per cent, allowed by law, this will be provided for. (h) Eire Insurance Fund This fund was "set up last year by contributions from various accounts totalling £3,200, plus premiums £l9, and now stands at £3,275, having earned £57 interest during the year. There having been po fire losses, the fund is progressing favourably, except that the earnings on fixed deposit are very low. A more profitable investment will, of course, be made as soon as the position is clear. ' < (i) Accident Fund This fund was also set up last year by contributions from the relative accounts totalling £155 and with interest earned and this year’s contributions, now totals £312. (j) The Interest Accounts The Interest Accounts are in a healthy condition and all show credit balances, the total being £1,297, an improvement of £4O 2 on last year. This balance may appear a large amount to carry forward in a financial year, but it is necessary owing to the due date for the bulk of the loans falling on April 1. (k) Statement of Balances at

Included in the General Accounts payments is £3,929 out of Water Loan. (m) Public Debt The Public Debt now totals £ 214, 950, having been reduced by £5,148 during the year. The accumulated Sinking Fund at March 31st, 1937, is £14,313. (n) Kates I have pleasure in stating that the rating position for the past year is satisfactory. Of £10,338 rates struck, £10,084 were collected at March 31. representing a collection of 97.54 per cent. There are only 35 ratepayers who failed to pay their rates. The Borough is fortunate in having such a large percentage of ratepayers who are in a position to pay, and I wish to state that-1 appreciate the cheerful manner in which the ratepayers meet their rates and for the interest shown in maintaining the standard of collection. Tauranga was at one time a backward borough as to payment of rates and was raised to the present standardin the year 1912/3, when a rate campaign was undertaken with the result that the percentage was taken from an average of 8 4 up to over 9 7 per cent, and a little later the 100 per cent, mark was achieved. Since that date eighteen financial years show collections exceeding 97 per cent., including 4 years over 99 per cerit. I .believe that Tauranga’s place in rate averages is No. 1 in the Dominion and 1 have enlarged upon the subject because I consider that it lias an important bearing on the administration, assists sound budgeting, and is at the tame time a municipal indicator. With the increased facilities now available it is intended to bring other departments up to a similar position. lI—REORGANISATION COMMITTEE'S KEI’ORT After the adoption of the report early in 193 6 work was commenced putting it into effect. A great deal of time and thought was expended In planning and layout, a very important matter in a modern office. The expert engaged by the Council to design the office layout and equipment went carefully into details with the staff and the result bears comparison with offices of many larger towns. The office accounting system was tackled early in the financial year, and with the acquisition of the cash register, which has nine dissection keys, the stub system of posting was introduced. This entailed a great deal of work regarding designing books, account forms, etc., but this was eventually done and the system has been working satisfactorily for some nine months. The electricity consumers’ accounts were the first to be dealt with and to facilitate handling, the Borough was divided into 12 zones from A to L, with a route number for each property. The numbers were allotted and at the same time a survey taken with reference to water, drainage, sanitation, and refuse collection. The information was carded by the meter readers and is now in use as a permanent record. The M-ate-book was also re-designed to avoid the necessity for writing up separately the rate demands and to take advantage of the stub system. Numerous other systems were designed, including electricity connected load and 'when it is realised that some fifteen thousand cards will he used in the various new tysjtems, it will give some idea of the work entailed. Filing System.—This has been overhauled and further equipment obtained. The filing clerk is responsible for filing all correspondence and documents and for obtaining receipts for documents on loan and specialises in filing. Town Clerks’ Conference. —I attended the recent Conference of Town Clerks, also the Municipal Conference at Timaru. Opportunity was taken between sesrions to discuss methods of administration and a great deal of data has been acquired and will be filed and dealt with as required. I consider both Conferences are of great value and cannot fail to produce worth-while results. Duties books have been supplied to each member of the office staff. These books contain full particulars of duties, the books to be kept and the keys held, and are signed by the individual concerned. A book containing general staff orders has been also compiled and signed by the staff. Storeman. —The store has been, completed and 304 bins installed and numbered. The store books and forms have been designed and the svstem laid down as recently reported to the Council. Stock has been taken and this includes showroom, electricity fittings, and material, loose tools and plant, abattoir, streets and other material. The stock schedules are now being typed. There is urgent need of a bulk store to house electric ranges and other stocks. I also recommend that a telephone be installed in the store to link up with the Council’s and the public system. The new offices were occupied on February 3, 1937. The year 1936/37 has been one ot reorganisation and the laying of foundations. Practically all of the redesigning of books, cards and forms has been completed and the writing up is in hand. I anticipate that the ensuing year will see the desired results, and that to-day’s work will be finished to-day. Or lies, in moving the adoption of the Town Clerk’s said he wished to compliment Mr Shearman on the report which he had presented. To his mind it was the best report yet brought down by the Treasurer. He also complimented the Town Clerk on being able to present the balance sheet so early after the close of the financial year. He further complimented him on the rate collection of 97.54 per cent. Tauranga’s position, as rate payments went, was commendable. Cr McKinnon seconded the motion. As Chairman ot the Reorganisation Committee, he asked the Town Clerk if the work of the office would be brought right up to date and maintained at that standard. Mr Shearman replied in the affirmative. Cr Youngman said the Town Clerk was to be congratulated on the general tone of his report. It was fitting, too, that he should openly 'express his views on financial matters. The report was a most excellent one. Cr lies’ motion was put and carried unanimously. Cr lies moved —That the installation of the telephone in the store be agreed to. —Seconded by Cr Youngman and carried.

31st March, 1937 Credit Account £ s- d. General . . . . 1715 3 G Water, Dr. £977 8 3 T. Hall, Dr. £90 14 3 Stewart’s Trust . . 263 0 10 Drainage . . .. 71' 4 11 "Drain. Con. Adv. .. 127 11 11 Deposits (General) . . 93 3 11 Military Cemetery . . IS Abattoir .. .. 252 13 10 Interest .. .. 1297 1 2 Dr, Water & Town Hall 3820 1068 7 9 3 6 2752 5 3 Dlec. Working Contractors’ Deposits (Elec.) Fire Insurance Accident Insurance Fd. Drainage Loan £720 . . 4885 339 3275 312 73 14 9 0 0 5 2 14 4 0 7 ■ 11638 0 1 U) Total Receipts and Payments for 1936/7 Receipts General Accounts . . Electricity Accounts 24,337 27,419 51,756 « Payments General Account . . Electricity Account 29,472 25,064 54,536