CITY'S FINANCES.

Evening Post, Volume LXXXIII, Issue 94, 20 April 1912, Page 9

CITY'S FINANCES.

■ FIGURES ANALYSED. THE TRAMWAYS, POINTS FOR CAREFUL CON* SIDERATION, Tit the course of hie speech at Kilbirnie last night, Mr. Biss, who is a candidate for the Mayoralty, gaVfe an interesting analysis of tho city filianceei He said : I have just received the corporation accounts for the year ended 33 st March, 1912, and, for the information of electors, I ■would like to point out I any material differences between tho : accounts for last year and tho year before. In 1912 tho rates collected amounted to £152,082, whereas in 1911 they came to £153,464. Tho amount actually received is £1400 lees than in the previous year, but, as there was a larger amount outstanding in 1912 than in 1911, the actual rates levied would appear to be about the same for both years. The rents for 1912 were £27,300, being an increase of £6432 over the previous year's, which in probably due to several leases having com© within a new period at higher rentals. Building fees show a falling' off of £447. The receipts from baths fell from £766 to £514. Town Hall letting has increased by £149. Receipts from the libraries have increased by nearly £100. f This year the corporation has, received from the Gas Company the sum of £301 in pursuance ot the agreement made two y*ars ago, whereby the Gas Company pays a contribution on all gas consumed in Melross and Wadestown districts, in addition to the actual charge, for the privilege of using the city streets. The expenditure on streets is £4000 less than tho previous year, while scavenging and street- watering has cost £9243, against £8347 formerly, being an increase of about £900. Collection and destruction of refuse has cost £421 leee this year. Street lighting is about the same, but I believe the time lias come- for readjusting tho charge for street lighting, as the circumstances and cost of lighting have changed since the present rate was fixed, and it is a question now whether the Electric Lighting Department and the Power Station of the tramways are receiving sufficient credit for street lighting. The expenditure on Fire Brigades has increased by £1,372, due /probably to the purchase of new plant. Water works expenditure has increased by £1500, due almost entirely to extra interest on New Loan. The expenditure on the city reserves has increased from £6363 to £7942, being an increase of £1579. The expenditure on libraries has been reducedf from 1 £3987 to £3470. The contributions to tho Hospital and Charitable Aid Board amounted to £8943, being a little more than tmrprevioue year. The expenditure on the Zoo account* for £1894, being an increase of £550 on 1 the previous year. The figures at the end of, the. year aro shown as follow ;— Overdraft district fund account... 20,146 Less credit balances in the Tramway, Electric Light, and Accident Funds „, 16,137 Leaving a net debit balance at . the bank of 4,009 It is not, however j v correct' to eet' the credit balances of the Tramways, Electric Lighting Department, and Accident Funds against the debit balance in the District Fund Account, as there is no connection whatever between these accounts. As there is a large smn due by the Electric Lighting Department, namely, £20,000, to the General Fund) being repayment of an advance made some years ago from the District Fund, the debit balance in the District Fund Account can be extinguished from that source. Meanwhile general district work may, be cramped lor want of funds. TRAMWAY SURPLUS. The tramway accounts, of which I have just received an advance copy, show an increase on the receipts and disbursements sides.. Tho traffic expenses have increased' from £51,381 to £53,887. This" is not apparently due entirely to increased traffic, as the rate per -car mile has gone up from 5,480"* to 5,698. General expenses have increased from £7095 to £7504. Repairs and maintenance show a substantial increase from £18.956 to £23,066, being a difference of £4,110. This increase is what I referred to some time ago when I pointed out that the profits during the lirst few years must not be taken a 8 tho normal earning capacity of a new service, as repairs and maintenance are higher each year after the plant starts to wear out. Of course, later on, when the plant or rails have to be "scrapped," fc then .such replacements can be charged , against the depreciation fund. Power expenses have increased from £14,592 to £15,450, bringing up the average per car mile from 1556 to 1634. The above items aggregate .£99,909, representing a car mileage rate t of 10,564, as against 9814 in the previous year, and the 1 gross profit is, therefore, reduced from £41,681 to £38,800. From this gross profit we have -to deduct: — £ Interest on Loans r^ >.. 18,935 Sinking fund „k 4,784 Depreciation ... ..» ... ... 13,829 thus leaving a nett surplus of £1,242. This is carried forward to an appropriation account and is added to tne nett profit ■of the power and supplies department of £978, making in all a nett profit of. £2,220. The following items are charged against these profits, being amounts which it is hot advisable to carry forward as capital expenditure and which. must therefore come out of the profits:—. ffi Loop extension, Oriental Bay ... 94 Alteration of box cars to combination type „. ».., 2,250 Temporary workshop ... >„, 157 Horse tramway sinking fund »., 500 Alterations to equipment ... 213 Erection of shelters at Lyali Bay 446' Actual amount written off preliminary; expenses f .± t ., 1,385 ' 5,045 As the net profit available for these appropriation is only £2220. a debit balance remains of £2825, which in the balance-sheet is deducted from accumulated funds of previous years. In all the above figures I have left put tho shillings and pence. The receipts for tho year amounted to £138,229, being £4874 more than the previous year, and the rate per ear niilo has gono up from 14,222 to 14,615. The sundry revenue represents £480. From the above it will bo noticed that the increased earnings per car mile is .39, but the working expenses have gone up .75 per car- mile. . It is very unsatisfactory when expenses go lip at a higher ratu than receipts. It will be tho duty of the committee during the en&uing year to see what this is due to, and to rectify it if possible. The balance-sheet shows an increased liability under the heading of "loans'* of £13,000, and an increased expenditure of over £20,000, both of which are due to the construction of the kWadeetown tramway. i T fel ifopEecMion fund J.or the 4r tua-.

fays how stands at £87,560, every penny of which has been required for capital expenditure in connection with! extension of service, new cars, plant,' etc. The loss on the Wadestown Bervioe ii about £780. Of this amount £550 ' represents interest and) sinking fund on the Wadestown loan, which has to be provided for Out of a special rate. ELECTRIC LIGHTING. Referring now to the Electric Lighting. Department. The total working expenses havo increased from £23,609 to £25,232. This i» due entirely, to an increased turnover. Th© revenue lias increased from £45,687 to £51,720. Th<s credit balance from the working account, transferred to the net revenue account, is £26.487. " This i& appropriated ac follows :—) £ Interest on capital *, 7,141 broking fund „.« ,l(k, l(k „. 3,169 Depreciation „,, „., „,% 7,259 Tims leaving a. »ett surplus of £8938. Alterations, writing off preliminary expenses, etc., absorbs £2654, leaving a nett balance to profit, of £6283. The depreciation fund now stand* at £29,542. Tho capital expenditure up t° o - o t h« Sl6 !'. March, 1912, has been £262.859, which has been derived from the following eourcee : — Loans ra-i«>d w 176900 Depreciation fund used for capital expenditure „ 29J542 Revenue applied to capital ex. penditure . ... 6,417, 1 And borrowed from the general ( district fund „^ " k> , 20,000 £232,859 ' It must be admitted that the balancesheet of the Electric Lighting Department is very satisfactory^ and fully justifies the anticipation of those who advocated the purchase of these works from the electric light syndicate. The time cannot bo far distant when a reduction can be made in the co*t of lighting and power, as the profits should Ihcrease every year on account of the large number of new connections that A3.& being made in the outlying districts, thus increasing the revenue from mains -that hitherto did not supply many customers.