CITY COUNCIL’S ESTIMATES

Dominion, Volume 21, Issue 170, 18 April 1928, Page 12

CITY COUNCIL’S ESTIMATES

NO INCREASE TO BE MADE IN RATES BIG PROFITS FROM ELECTRICITY DEPARTMENT £20,000 TO BE TRANSFERRED TO GENERAL ACCOUNT . The Wellington City Council’s estimates of receipts and expenditure for the current year were revised and passed at a meeting of the Finance Committee on Monday night and afterwards adopted in open council. This constitutes a record, for the estimates have hitherto never been finally adopted before June.

This year the City Council had to budget for £141,249 for interest and sinking fund charges, which is approximately £26,000 higher than last year. Fortunately the city’s electric light and power department shows an abnormal profit on account of supply power to Mangahao during the recent drought period, and the City Council has decided to transfer £20,000 of the profit to the general account in order to avoid what would otherwise have been obligatory—an increase in the rates. The new rates for the city will, therefore, not be in excess of those of last year, but the demands of the Wellington Hospital Board are £4500 higher. The estimates do not include the trading departments. A Difficult Year., The estimated expenditure is £279,998, including interest and _ sinking fund charges; receipts are estimated at £111,433, leaving £168,565. to be raised by a general rate of 27-10 d. in the £l. The amount of the Hospital Board call is £57,749, equal to a rate of 185-200 d. in the £1 on the unimproved value. This will be the most difficult year the City Council has Jiad to face financially for many yea*, but after this brighter times are ahead, according to the statement of the Mayor, > LAST YEAR’S RECEIPTS AND EXPENDITURE The statement of receipts and expenditure for the year ended March 31 last is as follows: — Receipts. The balance brought forward was £10,211; rates, including arrears and. 10 per cent, penalty, produced £425,415 9s. 3d., rents, £65,627 135.; licenses and building fees, £19,870 13s. Id.; waterworks, £23,892 6s. lOd.; baths, £1634 os. Id.; Town Hall and libraries, £6412 4s. lid.; cemetery, £3284 45.; lavatories,

reserves, and Zoo, £13,466; heavy traffic fees and Hutt Road (supervision), £13,785 6s. lOd.; supervision loan charge accounts, £5148 195.; other items, including £1534 Bs. Id. from the Government in connection with Duke of York’s visit, £3065 19s. 4d.; total, £596,602 13s. 4d. Expenditure. The expenditure was ns follows:—Street works, £70,991 4s. 5d.; scavenging and street watering, £17,642 19s. 6d.; collection and destruction of refuse, £24,218 16s. lid.; town and suburban halls, £3lll 13s. Bd.; drainage, £17,808 2s. lOd.; fire brigade, £15,405 7s. lOd.; water works (working), £47,743 12s. lOd.; street ’ighting, £10,213 os. 3d.; reserves, £30,262 18s. 3d.; salaries, £26,658 2s. 2d.; baths, £4130 4s. 9d.; interest on overdrafts, £1245 Bs. 6d.; libraries, £8592 375. Bd.; sanitary services and lavatories, £6202 10s. Bd.; cemetery and crematorium, £llB4 14s. Id.; Hospital and Charitable Aid Board, £53,150 16s. ad.; Zoo, £7631 2s. 4d ; reps., corporation property, £1565 ss. 3d.; motor workshops, £7104 16s. lid.; miscellaneous, including elections, printing and advertising, legal, fuel, lighting, and insurance, £27,671 16s. 2d.; interest on loans £150,520 Is. lid.; dog collars and food, town planning, and smaller items, £l6OB os. 4d.; sinking funds, £31,712 9s. Id.; superannuation, £5663 19s. 5d.; public health, £1258 19s. Id.; general accident fund, £2000; contribution City and Suburban Highways, £1683; Hutt Road, maintenance (City Council pro., £1000), £422 10s.; ’Duke of York’s visit, £2103 4s. 6d.; ’Free Ambulance Service, £llll 3s. 6d.; ’tramwavs re Northland Tunnel, £4000; ’Vogeltown tennis court, £7Ol 35.; ’Technical School, £5000; ’Kent Terrace reserve, £1397 os. Id. Credit balance, £1865 10s. lid. Total, £596,602 13s. 4d. The items marked * are _ abnormal payments, and were not included in the estimates. Thev total £14,312 11s. Id., but after providing for this sum there was a credit balance on the year’s working of £1865.

•THIS YEAR’S ESTIMATES .

The estimated receipts and expenditure for the current year 1928-9 are as follow, together with the estimates and actual .receipts and expenditure for year'ending March 31, 1928: —

COMMITTEES’ ESTIMATES The waterworks account estimates receipts at £119,000. Expenditure: Working, general and office expenses, - £50,550; interest, on loans, £56,864; sinking fund, £10,169; showing credit balance of £1417. Library Committee.—Receipts:—Subscriptions, £3350; rate at 16-200 d. in the £, £4994; debit balance, £366; expenditure, £B7lO. Street and track lighting.—Expenditure, £10,613. Rate, 34-200 d. in the £. Hospital and Charitable Aid. — £57,749, as against £53,150 last year. Rate, 185-200 d. in the £. Interest and Sinking Funds. The total amount to be provided for interest and sinking funds is £141,249, of which, the following are new items which have been incurred in the past year, and appear for the first time: — Unemployment loan: £16,000 at 6} per cent., £1010; ditto: £lO,OOO at 6| per cent, £650; ditto: £26,000 at 6f per cent., £1690; street paving completion, 1927: £20,000 at 8 per cent., £1600; Hutt bridge loan: £5BOO at 6| per cent., £377; street paving Joan, 1928 (Pt. £201,000) : £lOO,OOO at 10.646 per cent., £10,646; footpaths loan: £63,000 at 7j per cent., £4725 : public conveniences loan; £26,800 at 64 per cent, (portion), £871; street widening loan: £150,000 at 6 per cent, (portion), £4500. These total an addition of £26,099 to the yearly charges under this heading. The revenue is provided by rents receivable, £12,000; heavy traffic fees, £9780; petrol tax, £10,000; consolidated interest rate of lid. in the £, £93,710— leaving a deficiency of £15,759. The electricity department has an abnormal profit on the past year’s working, and in order to avoid any increase in the rate a sum of £20,000 has been transferred from that department to the general account. THE RATES The rates for lhe year (on unimproved values) will be as follow:— Per £ on unimproved To value, produce, d. £ General 2 7-10 168,565 Water 2 96,000 Library 16-200 4,996 Street lighting 34-200 10,613 Hospital and C. Aid... 185-200 57,749 Consolidated interest If 93,710 £431,631 There is one special district rate of 190-200ths in the £ on unimproved value for the Ngaio district to provide interest and sinking fund charges for the district hall. It concerns no other part of Wellington, and the amount required (£325) is the same as last year. The rates, following the decision of the City Council several months back, will be based on unimproved , values, annual values ..being eliminated. The new valuation is well under way, but will not be in operation until 1929. STATEMENT BY THE MAYOR TRADING CONCERNS IN GOOD CONDITION REDUCED LIGHTING CHARGES Speaking in reference to the estimates, the Mayor (Mr. G. A. Troup) stated yesterday that they had gone through in record time this year, for he believed that hitherto they had never been finally approved before June or July. The rate had been struck, but it would not be any higher than it was last year except for the Hospital rate, which had increased by £4500, but would not make a very material difference. The cause for concern was that it showed an increase every year. The Finance Committee bad scrutinised the estimates very carefully, and some further details regarding the schedule of works were to be brought down later.- The estimates were on much the same basis as last year. With a certain number of pressing works it seemed as if an increase in l the rates was inevitable, but relief whs found in the fact that this. year an abnormal profit had been obtained from the electricity branch of the council’s undertakings, due to the shortage of power at Mangahao in consequence of which the Wellington plant was called into requisition to make good the shortage: This presented an opportunity to the council’s management to make a profit this year which would not recur in future years. In the circumstances, the council had felt justified in taking £29,000 from this profit and placing it in the general account, so that the necessity of increasing the rates might be avoided. A serious item which had to be faced bv the City Council was the increase of £26,000 in the interest and sinking, fund charges, which was the largest increase under this heading which had ever taken place ill one year. Of necessity it threw the accounts out of balance. and in ordinary circumstances it would have had to have been met by an increase in rates. “The council's finance will be strained to an unusual degree this vear,” continued Mr. Troup, “but relief will be obtained next year from two sources—the new valuation, which is now well on the wav, and the commencement of a neriod in which considerable repayments of loans will be made, reducing the interest charges very considerably

for a number of years in succession. In the circumstances, the council felt justified in obtaining the relief mentioned to tide them over the most difficult financial year the council has ever had to face.” Reduction in Light Charges. The Mayor said he had intimated to the City Council that he had asked the general manager of the tramway and electricity branch to bring down proposals with regard to a further reduction in light and power charges. A reduction was made twelve months ago, and this will be a second redaction within two years. There was no likelihood of any revision being made in the tramway fares. At the same time, the trading concerns of the council were shown by the financial statement to be in an excellent position. “It will be gratifying news to the ratepayers of Wellington, in view of the hard year which so many have experienced, to know that the rates are not going to be increased with the exception of the Hospital'rate, over which the council has no control,” concluded the Mayor.

RECEIPTS. Estimates Receipts Estimates Rent— - 1927-28 1927-28 1928-29 46,700 1,158 1,700 14,220 48,737 50,000 Market Reserve 1,158 1,158 1,542 1,700 Licenses— 14,168 14,100 5,000 3,500 - 5,701 5,000 Cemetery and Crematorium Fees .. 3,284 450 3,500 Government Subsidy 450 450 3,800 1,400 3,014 3,000 1,634 . 1,500 "PnVilin Tvst.nries 1,250 1,817 1,300 Sinking Fund Commissioners’ An400 400 400 8,000 450 9,070 8,000 Encroachment Fees • • 472 450 4,430 4,601 4.500 Gas Co. Annual Payment ....... i 1,150 1,206 1,150 2,200 2,578 ‘ 2,000 Loan Accounts for Services 5,000 5,148 9,325 Supervision 15 per cent. Heavy 3,750 3,859 ■ 3,900 General Rate 2 7-1 Od. in the £ . . 166,357 168,565 168,565 Total £279,998 .EXPENDITURE. Estimates. Expenditure. Estimates. 1927-28. 1927-28. 1928-29.. £ £ £ 71,000 17,000 70,991 71,000 Scavenging and street watering ...... 17,642 17,000 Collection and destruction of refuse .. 21,500 ' 24,218 21,500 17,600 . 17,808 17,600 12,000 15,405 13,000 Reserves, ordinary , 26,666 26,625' 26,666 Reserves, special 3,500 3,637 3,500 5,000 4,184 5,142 24,000 26,658 28,684 Baths and beaches, ordinary . 3,600 3,691 3,600 Baths and beaches, special / . 900 438 900 Town Hall 4,000 3,111 3,500 Printing, advertising, and stationary 2,600 3,000 2,484 2,667 2,500 3,000 Technical School (ord. subsidy) 300 300 300 Subsidy to bands ..... Zoo account 275 5,800 300 7,631 300 4,905 Reps, and additions to . Corporation property Government street traffic control ...... ; 1,000 1,824 1,565 1,824 2,000 1,824 City conveniences upkeep 2,750 3,535 3,000 Motor workshop 5,000 7,104 - 5,000 Boys’ Institute 200 200 200 Free Kindergarten Union 100 100 100 Workers’ Educational Association .... 100 100 100 Superannuation Retiring pensions 5,000 2,500 5,663 3,022 5,000 3,000 Sundry wages . 7,500 6,850 6,500 Harbour Board rent Unauthorised (section 121, Public Re1,050 1,000 1,050 1,434 1,050 1,200 venue Account) Public health 1,480 1,258 1,200 Accident appropriation 2,000 2,000 2,000 Dog registration expenses 700 645 700 General expenses and miscellaneous .... 7,000 7,572 6,000 Contribution, City and Suburban High- * 1,683 1,700 ways Board 1,500 Contribution, Hutt Road maintenance .. Special Expenditure— Soldiers’ Memorial (city) ;.. 442 • 2,50u 442 442 2,500 —— Soldiers’ Memorial (Karori) 500 — 500 Fishermen’s Wharf New Zealand Free Ambulance (Wei1,250 1,500 37 1,500 1,111 400 Town planning 1,000 771 1,000 86 Alterations, City Solicitor’s and Engl neer s oilices .. 1,156 Rent, Fletcher Construction Co 52.i 2,500 ' ' 500 4,602 1279,998