CITY FINANCES.

Evening Post, Volume LXXIX, Issue 82, 8 April 1910, Page 3

CITY FINANCES.

THE YEAR'S OPERATIONS. MAYOR'S REVIEW. "MUNICIPALITY LIVED WITHIN ITS MEANS." ACCIDENT INSURANCE : NEW DEPARTURE. TRAMWAY PROFITS FOR YEAR TOTALLED £6123. At the meeting of the City Council last evening, the Mayor presented an important statement dealing with the city finances for the yeai' ended 31st Maich. "I propose." said Dr. Newman, "to give the council a bird's-eye view of the yeai's finance. Considering the difficulties v.ilh which the year began and the dullness of tiade, I tiuEt you will consider the position as entirely satisfactory. The receipts for the year came in suiprisingly well, and the expenditure was kepi down close to the estimates, notwithstanding the fact that tho council put work ia hand to meet the unemployed difficulty. Theie were savings on some items of expenditure. The overdraft of £45,500 and £20.000 liabilities on electric lighting undertaking : it has been reduced to £16,500 by means oJ debentures sold, £15,500; by taking £28,000 on deposits, a plan which will save the corporation seveial hundreds a year of interest ; and the balance, about £5000, profit and savings and other sources of revenue. The city has lived within its means and the services maintained as usual. RATES AND RENTS. "On the 31st March, 1909, theie \ver» unrollecled rates £10.012, on 31st March, 1910, £5421. The amount outstanding could not be decreased, in spite of the excellent work done by Mr. Godber. Some people simply could not pay last year's and this year's rates ; times for them were too hard. The rents outstanding last year amounted to £1792, and this year to £429. Kates and rents this year outstanding are £5944 less than they were last year, which, I trust, the council will consider satisfactory under the circumstances. The v amount outstanding is, notwithstanding dull times, the lowest for several years. The council can keep the \ rates this year the same as iast, year. ! ACCIDENT INSURANCE. . "The council decided to take the whole of its risks from accidents on itself. It paid info a separate account £2500, instead of paying money U> an insurance company, and also paid in premiums at the rate that would have been paid for insurance. After paying all claims for the year there stands to the credit of this account a total of £4350. So far the experiment has achieved great results. With ordinary iuck the council will in a very ishort tune build up so big a reserve that it will not need to contribute further, and year by year the whole of the accident premiums hitherto paid away will be saved. This will considerably case the city finances, and will bo a bona fide saving. TRAMWAY REVENUE. "For the first six months the revenue showed a steady falling-off. With the opening of the Lyall Bay tramway, unique in its way (it was paid for out of profit), and the coming summer, the revenue began to quickly recover until, by the 31st March, it reached £139,460. Th» nett surplus for the year is £6123, which is slightly better than last year. The counril during the year adopted the policy of concession tickets, which has been a distinct success. The officers, Messrs. Richardson and Cable, have done their utmost to cater for all the traffic. The inspectors, motormen, and conductors have all done their very best. The collection of fates has greatly improved. I should like to express my enthusiastic approval of the excellent way in which Mr. Petersen keeps the electric light and tramway accounts; they are business-like and are on most approved modern lines. Our traffic is increasing so fast that this council must fare the expenditure of getting more cais, they should be put In hand now. The passen^er^ carried last year numbered 21,679,902. ELECTRIC LIGHT. "This department is not so flourishing. The introduction of metallic filament lamps has lessened tiie revenue from private lighting by £3400, and as more of these lamps nre used, po will this branch of revenne shrink. During the current year there will be a further fall. We began the year with 4136 light connections. By push and energy of the officers during the year this was raised to 4500. Building operations have been very flat this year, or the number would have been greater. Whilst it is true that th« same revenne has not been received, the citizens have had a lighr. foi less money, and they voted for the purchase of the electric light works to have a- better and a cheaper light. The lessened levenue, after all, is money left in the people's pockets. , HOUSES LIGHTED BY ELECTRICITY. "There are upwards of 12,500 houses in tho city not lighted by the municipal light works, and all the 12,500 householders are liable for this electric light debt. If the fire Insurance people will, after the conference with the council, modeniise their rules, and allow us to Jnstal houses on the 'Simplex flexible wiring plan,' the cost of installation will be cut to one-half its present rate. I think the council should buy motors and sell them on deferred payment. This will lead to a largely-increased sale ofcurrent. Tho council can produce current cheaply ; the profits will grow if we can sell more current. If the underwriters wijl modernise their rules, the field for extension of the electric light is co large tho department will toon pay handsomely. A. CHEAP ILLU.MINANT. '.'Electricity is the. cheapest illuminant and healthiest illuminant in the market ; and citizens should consider it a civic dujty to all light their houses with it. Then out of tho profits, they could get their general rates reduced. Last year this branch showed a. profit of £4272 ; thi 1 ' year the profits have snrunk to less than ono half, viz., £2000. With the spread of the metallic filajnetti lamp even this 100 small profit will dwindle this year. In fact, there -may be no profit at all. On the other hand, if the council can introduce flexible wiring, and sell motors on deferred payment, it will show a good profit. LOAN MONEY. "Out of unexpended balance? of loans the council has done much work in building a dam at Solomon's Knob, Wainni, and erecting the Hutt Pipp Bridges. It has also cowered nearly all Mellon, and out of a loan raised dm- | ing the year has spent £23,000 upon supplying Northland nnd Wadesitown with much-needed water. These works have made these Miburbp clean and healthy place* to dwell in. The officers ha\e been so bu«y with the ordinary accounts t-hiit pierise figure* are not yet made up. I think the city in legard to loan and general expendiUire is lucky indeed to h&v« found to able tnd econo* •nicai ua, engineer at Mr. Mortfin.

SUMMARY. "Altogether the accounts are satisfac- j tory. I ha%-e not picked out the plums and left the bad. There is nothing unpleasant left untold. During the year we have effected many economies, and not many more can be carried out. One act of this council will save a Jot of money in future year>. I have long believed that fill our streets should be tarred. The decision of the council to older from England a road-tarring machine of Ithe kind Fiiggested by Mr. Morton, at an initial cost of £250, will save, when all our roads are tarred, a veiy large sum each year in roadmending, road-sweeping, and streetwatering. The yea-rly financial saving will be a great boon "to the city. Unhappily, {lie council'c revenue for the next three or four years will be inelastic. Neithei IJip Tramways nor the Electric Light Departments will be ablo to spare any revenue* for jnobab^ another five years. They will need all Mieir profits for extension?. If the city t enters on much loan expenditure other thnn for a new pipe track to the Wainui Waterworks Iho citizens muil -lace a rise in rates. I eslimatc that if the council be as economical for the next two or three yean, a« it has been for the year ended then it will be able 4o pay it; way and tho interest on this most necessary loan for building another pipe line. I chall bring this work under councillors' notice at next meeting." In concluding, he thanked Mr. Collins [ and the officer"; of the treasury for their I zeal. Considering the dullness of trade generally and the slackening off in tho | rate of building, the year's financial I operation* should be pleasing alike to i councillors and ratepayers.