SALE OF CURRENT TO CITY

Press, Volume LXXVI, Issue 23043, 11 June 1940, Page 4

SALE OF CURRENT TO CITY

BALANCE OF £1'4,428 FOR YEAR SURPLUS CARRIED TO RESERVE The balance from the sale of current this year (to March 31, 1940), by the Municipal Electricity Department amounted to £14,428, and from the trading departments of the undertaking £IB2B. With the balance from last year of £7122, there is a total balance of £23,378 available in the allocation account, and last evening the Christchurch City Council decided that that sum be carried to general reserve. The units sold by the department during the year increased by 9.2 per cent.; revenue increased by 7.9 per cent.; and the maximum load 15.7 per cent. These figures were given in a report to councillors of the year’s working by the general manager, Mr E. Hitchcock. It was significaift that the balance of £14,428 from the sale of current represents 41 per cent, on the revenue, and 1.4 per cent, on the capital outlay, the report states. “It will be noted from the balance-sheet that apart from ■ investments, the only available resource was an amount of £21,873, cash in bank on- March 31. By April 25, that amount was £4828 and at the end of April, £5895. At present it is £19,278. As already explained, this is a narrow margin of working capital for even power payments alone, which may exceed £50,000 for each of the winter quarters. The finances of the department have this year been thoroughly reviewed, explained, and discussed when dealing with tHe need for loan, money. The anticipated capital expenditure for the current year is £97,000. The council’s application to the Loans Board, if successful, asks for a first instalment of only ’ £60,000.” The chief financial arid operating items' for the year were outlined as follows:

Valuation of Assets' Assets detailed in the Municipal Electricity Department’s balance-sheet as at March 31 include the following;— Invested in debentures and stock, £152,828; stocks and stores, £39,287; ■land, buildings, and plant, £1,025,892; sinking funds, £124,893. Total assets are set down as £1,467.527. Depreciation reserve now stands at £579,704, renewal reserve at £35,000, sinking fund reserves at £124.893, and general and loans repayment reserves £406,351. The finance committee of the council, commenting on the report last evening, stated that in all the circumstances, which had already been placed fully before the council, the results for the year “may be considered most satisfactory.” The allocation of the £23,378 to general reserve was recommended by the committee, “in view of the future capital requirements of the undertaking, and the relatively limited amount now available from the operating account.”. - ,

1939. 1940. £ £ Capital outlay .. 1,006,568 1,095,267 Working expenses .. 88,865 91,538 Current 153,319 169,125 Capital charges 39,801 44,595 Total costs 281,985 305,258 Revenue 295,646 319,686 Balance 13,661 14,428 Maximum load k.w. 26,954 31,200 Units sold , .. .. 90,564.122 98,904.944 Revenue a unit— Domestic .. ,681d ,671d Commercial 1.591d l;589d Industrial .. ,718d. ■721d