CITY FINANCE.

Dominion, Volume 4, Issue 1101, 13 April 1911, Page 6

CITY FINANCE.

AND MUNICIPAL UNDERTAKINGS. A CREDIT BALANCE. THE PAST YEAR REVIEWED. Annual siatomonfs dealing with tho financial of the city mid wilh iho working during Hie past year of Ihe various municipal departments were presented to the City Council ut a special meeting yesterday Ijy the .Mayor (Mr. 'I'. M. Wilford). The' mcetin,? was attended by the Mayor, and Councillors Lute, Cohen, I'rost, Trevor, Thompson, Fitzgerald, Atkinson, Hindmaish, M'Laren, Shirtcliffc, and Fletcher. TREASURERS' REPORT. FINANCIAL POSITION SUMMARISED The Mayor first, presented to the council the following report, drawn up by rhe City Treasurer (.Mr. 0. Collins), upon the city finances for the year ended 11 arch 31, 1911:-

The receipts on the general account totalled ,£2M,6G5 3s. 2d., the principal sources of income being:—Rates, .£153,237 17s. Id.; rent, £2S,2tw Is. 2d.; and eah of water by meter, ,£II,BOB IGs. Od. Tho expenditure came to =£"203,200 11s. 7d., the principal items being:—City services (strests, drainage, lighting), .064,300 Is. Gd.; waterworks (including interest and sinking fund), J»I,GSI 14s. lid.; interest and sinking fund, £49,047 ss. 2d. There was, therefore, an excess of receipts over Expenditure of .ESIGI 17s. 7d. on the year's working. Accident Insurance. In August, 1909, the council resolved to undertake its own accident insuranco risk?, and has set aside as a nucleus of a fund with the addition of premiums a sum of ,£7SG3 3s. 6d. to date. The claims paid to date have been very light, only .€IOSO 11s. Gd. on all department's (general, tramways, and lighting), leaving the fund iu credit to the extent of .£6812 12s. Rent. Tho total rent collectable during the year with outstandings from the previous year amounted to .126,073 Is. \Vo have collected A' 25,265 Is. 2d., leaving .€BO7 19s. 10d. outstanding at March 31, nearly all of which became due in March. The amount outstanding was reduced during the first week of April by Jciti 17s. 9d., collected. • ■

Rates, The rates levied for the year amounted to £153,239 10s., and there were arrears outstanding amounting to £598S 19s. 10d. This made a total of £159,25S 9s. 10(1. to bo collected bsfore March 31, 1911. The first half-year's demands were sent out in August, three weeks later than the previous year, leaving us eight months to collect tho rates. Tho position at March 31 is that a total of £153,237 17s. Id. has been collected, leavins a balance of £6020 12s. 9d. outstanding. Sinking Funds. The sinking funds at? March 31, 1910, stood at .£177,032 19s. During the year investments to the extent of £24,060 have been made on real estate security at tho rate of 5 per cent. Interest to the amount of £6755 IS.<. fid. became due during the year, and it has all been collected, with tho exception of a small sum of ,€S2 Ins,, duo by one mortgagor. Tho fund to-day amounts to £201,875 12s. lid. Bank Account, , A statement of the.position of the bank balance, on revenue accounts at, March 31, 1911, and the previous year March 31,' lillO, for the purposes of comparison is submitted. On March 31 last year there was a net debit balance of. £1C,51S 13s. Bd., whereas at March 31 this year there is a net credit balance of £7207 !)s. (id. It will be noticed that the tramways and electric lighting bank accounts are both in credit this year, and that the debit balance to district fund has been reduced. THE TRAMWAY YEAR, SURPLUS OF £6225. Dealing with the tramway year, the Mayor stated that the total revenue from tramways and from power supply amounted to £112',785, an increase of .£3327 over last year, made up of £266:1 from traffic and £66t from the sale of current.

The total working expenses amounted to .£95,965, au increase of £3018 over last ysar.

Tho principal increases have occurred in tho power .station on fuel and repairs to the plant, and in the traffic expenses under the heading of wages to motormen and conductors, and ticket check account. After the payment of interest on loans, amounting to .£21,134, setting aside a sum of £bOoi as sinking fund, and charging ,£14,'J07 as depreciation, the net balance is a surplus of t £G225, as against ■£6123 last year, viz.:—An increase of .£lO2. New Works. Several new works have been carried out during She year, chargeable to capital account, and paid for out of depreciation fund, amounting to JC7791. The works are as follow:— Thorndon car-shed (incomplete) ... filSO Completion of Lyall Bay extension 255 New cars 82 and 83 (incomplete) ... 225 Permanent way material, Customhouse Quay txtension 729 Workshop machinery 326 Automatic point controller 115 Extension of power .supply system... 633 Freight car (incomplete) ..." 32$ Total ,£7791 Sinking Fund. The amount of sinking fund set aside during the year was .EoOJt. This has been supplemented by interest received from investments amounting to .£lOsl, making a total to the credit of the fund as at March 31, 1911,' of «£2!),373. Traffic Returns. The total number of passengers carried on tho city lines was 22,01)1,235, an increase of only 671,72S over the preceding year. Tho total number of car-miles run on all .lines was 2,250,291, an increase of 41),620 miles. Works in Hand. ■ The sum of ,£I!>,9SG will be required during the current year to complete works in hand an<l for commitments. Among the items making up this total I may briefly refer to:—Customhouse Quay extension, new cars, conversion of boxcars, freight car, automatic point controller, Miramar annual payment, sinking fund (horse-car loan), Thorndon car-shed, extension of power supply system, motor tower-wagon, alterations to overhead equipment and points and crossings. Projected Works. The following is n list of .projected works which have been already recommended as soon as funds are available:— Bunny Street extension, car-shed and land Kilbirnic, six new cars, workshop machinery, Courteuay Place waiting-shed, loop at Hay Street, extension of double track in Kilbirnic, shelter shed at G.P.O. After close examination of these figures it will be seen that after tho payment of tho works in hand it does not look as if there will be any large sum available for new works other than those already referred to during thf coming year. It is apparent that tho revcnijo cannot bn called buoyant, and as tho expenses in connection with repairs and maintenance of cars, track, and plant will be an increasing quantity it should be the aim of (ho council during the next year to proceed carefully and warily, scrutinising thoroughly ovory ilem of expenditure. I desire to express my appreciation on behalf of the council, for the work done by this officers and men of the dejjartaent during the East jear,

ELECTRIC LIGHTING. Sriil'U'S 01' JM3IG. Tho I'.itiil revenue from the electric lighting department, the .Mayor staled, amounted (;i ,£l'),.iS7, an increase of ,U77:i liver the preceding year, due to the expansion of the power and heating supply and the extension of the public lighting. The income from private lighting, notwithstanding the large increase in (he number of consumers connected, shows a decrease of .4:110, which is undoubtedly due to the more general use of metal filament lamps, the average decrease in cost of lighting to each consumer amounting Id ,tl 3s. lid., or nearly M ppr cent, as compared with the previous year. The decrease is further accentuated when compared with the cost per con-Miim-r two years ago, the average lighting accounts being then 28 per cent, higher than at .present.

11. is evident from these figures that the cost of electric lighi to the consumer has hern enormously cheapened within the last year or two, and as the revenue from private lighting has fallen over £%m within the last two years, any reduction on the present prices is .unwarranted.

Iho total working expenses show a net decrease ot .£2324. The generation exJionscs have decreased by .£3387, due to Vile very economical working of the Parsons turbine. Distribution and general expenses have increased by £1063, duo to the rapid expansion of the business. J- he annual capital charges" this vear amounted to i!17,G32, or .£979 more than last year.

After setting aside a sum of ,£3149 as Jinking hind on the loans, and depreciation at an"average rate of 1 per cent amounting to ,£6886, the net balance for ™J?V I s a SUl ' l,ll,s of - mis > »* gainst Ajjjb Jasr year.

After providing for the annual amounts written off preliminary expenses and old station plant sold, the total approK£°T h ' ?m Hl °, n , ct s, ""P lus nsgregato J-1032 leaving n balance of .£313 to be carried forward.

.Hip sinking fund account at the beginning of the year stood at j≥8776. This lias been further added to during the .year by the annual appropriation and ™?Z est on "'vestments amounting to J-.iSO3 making the total fund as at March 31. 19!], ,£12.279. The sum of miC has been expended on the extension of electric mains, including meters and transformers, necessitated by the phenomenal increase in Hie number of new connections over all parts of the system. [The expenditure was charged to capital account and paid lor out of revenue.!

A\hen the corporation took ovor the business on August 1, 1907, the number nf consumers then on the books stood at 3435. The number at present stands at 5368, an increase of 1933 connections, or 55 per cent., of which KG", or 25 per cent., have been added rluriii? the past year. Thorp is every indication that this expansion of tho business will continue, and the cost of extensions and connections for tho current, year, together with Hie completion of the rearrangement cf boilers, will about absorb the surplus revenue up to March; 1012. With regard to the current year's expenditure on new works as boforo explained, the moneys available from revenue, account will be required for extensions to tho distribution system and for improvements at the station.

In conclusion, I consider the year's operations to be very satisfactory! and T anticipate that this improvement will be maintained throughout the ensuing year.My council wishes to acknowledge tho good work done by the officers and staff during the year. A Summary. "The position' throughout the city today," said the Mayor, "limy be summed up as. follows:— "There was a debit on nil revenue accounts last, year of £16,518 13s. Stl. Today thero is a credit of £7207 its. Gd. Last year the net surplus earned by the city on the geueral working account was .£1492. This year it is £5164. Last year the profit earned by the tramways was .£6123. To-day it is £6225. Last year tho profit earned by electric light was £2228. This year it is £4346. "The difference, -£6191, represents' Mho excess of profits over the whole of the operations.of the city as compared with last year."

. THE DISCUSSION. "KEPT WITHIN OUR SPENDING POWER." "I believe," said tho Mayor in a concluding statement, "that the citizens of Wellington havj a right to honestly thank this council for the close and earnest attention they hnvo given during the past year. Duriug that time we have kept within our spending power—votes have not been exceeded. If you road Mr. Morton's detailed report yon will find that all through the officers of the council have carried out your wishes— cemmunicated to them fortnightly . by myself— that the amounts voted should not bo exceeded. The result has been that instead of having to obtain money lo make up.excess expenditure we have cut voles. I hope these who aiv contesting scats on (he council will remembev that we must keep within, our revenue during the coming your. Tβ less than three years the council will, bo in receipt of a largely iniTcased revenue. An annual amount of .£30,000. I am informed, will come in as a result of the revaluation of leases that fall in. This extra revenue will enalile the council to undertake necessary large works. At live per cent. ,£30,000 would cover interest on an expenditure of halt a million of money without placing a shilling of extra rates upon anybody' at all.

"As to tramways the revenue is not buoyant, and thero is, I think, no question whatever that so far as tramways are concerned there must be an overhaul. I propose myself, in. a day or two, to ask the' council to take a ■ particular course, and I can only say that I am satisfied that something has to be done in referonce to the traffic management ■of this city." Councillor Luke complimented the Mayor upon the creditable results atfained during his first year of office. Councillor Jl'Lnren agreed that it would bo well to consider the whole position in

regard to tramways. It would be a good thing to hold a special meeting from time to time to deal with special subjects such as tramway administration. Traffic Department Criticised. Brief congratulatory speeches were also mad* by Councillors hhort, Fletcher, Cohen, Trevor, Frost, and Fitzgciald The last-named, speaking of tramways, declared that "the traffic department was badly managed. Councillor' Fletcher thought this statement "a little wild." It would «urolv bo sufficient to say that the traffic maiiW mpiit might be improved. " The Mayor, replying, declared himsnlf heartily in accord with complimentary '•[•marks made by several speakers about "i 0 " 1 "," , ' , - , of the council. The citizens ot Wellington had been well and truly served. Every officer had an earnest consideration of the city's welfaro at heart, as nacr every councillor. "As to what Councillor l'itzgerald said about tramway management," said tho Mayor, "I think ho meant traffic management." Councillor Fitzgerald: "I don't wish (o ba misunderstood. What I said was that every department of the tramways was well managed, with one exception, and that was the traffic department. Wo have exports in every department except the traffic department, and wo should get an expert there too." "A Strong Conclusion." Tho Mayor said that in previous years, when standing for the seat lie now held, he had taken up a particular attiludo in reference to (he traffic department. In (ho past ho had only made those statements from outside. ' Latelv, however, a sub-committee of the council had had an opportunity of investigation which had not been open to any of the other councillors. Until the sub-committee went into the matter that night (at the Tramway Conference) the speaker could not announce what thev intended to report to the council. 110 could only assure the council (hat the sub-committee had come yo a strong conclusion, and it' the now council would back it up ho (the Mayor) had every confidence that the coming year would sec a groat deal of change in regard to the traffic miinagomonl of the Cily Tramways. The subcommittee might lin subjected to a groat deal of criticism, but it was absolutely unanimous, and he had no doubt the council would back it up by and by.