BOROUGH FINANCES

Evening Post, Issue 36, 12 February 1935, Page 3

BOROUGH FINANCES

LOWER! HUTT'S ,POSITION

IMPROVEMENT OVER TWO YEARS

. A statement regarding the finances of the Lower Hutt Borough was made by the Mayor,.-Mr. J. W. 'Andrews, to his councir last evening. iIn making a comparison of the position in 1934-35, as against 1933-34, the Mayor, gave the following summary:— 1934-35: Rates struck, £54,147; collected, £40,256 (or 74.35 per cent); outstanding, £13,891 (or 25^65 per eeat.). 1933-34: Struck, £51,040; collected,. £35,113 (or 68.70 per cent.); outstanding,. '£ 15,927 (or 31.22 per cent.). On March 31, outstanding rates were =•27,907, and of these £8282 (or 29.70 Per cent) had been collected, leaving outstanding £19,625 (or 70.30 per cent.), while on March 31, 1933, the rates outstanding were £25,751, and of these £6649 (or 25.82 per cent.) had been collected, leaving outstanding £19,002 (or 74.18 per cent.):- , From this it would be seen that the collection of both current rates and arrears of rates had very materially improved during the last year. KEVEEXED HOUSES. . The loss of rate revenue in respect of- properties reverting to the Crown during the ten months to February, 1935 was '£2200 3s sd, and the approximate loss .of rate revenue for this financial year in respect of proIperties which had reverted to the Crown since the year 1930-31 was £8422 0s 6d, making a total loss to the borough of £23,918 13s 9d during the I past five years, which amount was greater than the total estimated overdraft as at May 1; 1935. . Continuing, Mr. Andrews said'that , the estimated financial position as on May 1, '1935, from' February 3 ; was:— Revenue from- general . account for the period, £1311; rates, £14,540; total; £2761. Expenditure for same period: General account, £6895;- interest accounts, £9294; .hospital levy, £1361; total, £17,550. The difference between revenue and expenditure showed that! £14,789 was required to balance, and yet in spite of this shortage at the end1 of the. year the position- of the bank"! overdraft had very considerably improved. '' . ."■'.'. The Mayor went on to refer to the debit, balance at the bank on January 31, February 4, and: April 30, in various years, explaining that between January 31 and February 4, when the 10 per cent, penalty is imposed, a large, amount of rate payments are made!! thus reducing the debit balance at the bank. , He gave the position as -fbl-'i lows: 1932. April" 30, debit balance £26,918; 1933, January ;31, 'debit bal-J ance £27,441: February 4, £24,036,' April 30, £36,184; 1934, respective figures, £27,352,. £16,980, and £30,168; i 1935, £16,155, £8815, and £23,604 (estimated)." ' i ''.-.'•' NET IMPROVEMENT £9500, Thus; while on April 30, 1934, the debit balance was £30,168, this year, in spite of being behind £14,789, the overdraft was estimated to be reduced to £22,604. , -,-■'•■ -..'. . '.:-.'■.•..• ' ■There had been a capital.expenditure of £5000 for , the eastern water loan; (less £1925 paid off, making an increased indebtedness of £3075. . Therefore, the general financial position during the present^ council's term of oSSce was overdraft reduced from £36,184 to (estimated) £23,604, showing an improvement of £12,580, less £3075 new loan increases, making the total net improvement in two years ot £9505. ..■ ■:■' .'■■ v ~^V/•'■/;•-. . ... j This had been done, said Mr. Am drews, in "spite. of the heavy loss on, properties which, had reverted to the Crown. ~..' '•• ..".-'■■-■■■■' " ■ . ■ ■ Councillor F. Campbell-said/ that great credit was due"to the Mayor for] the financial results 'of ■ his -term of office, and they should be very gratifying to him. The Mayor was to be greatly congratulated-on his work. CHear, :hear.) . -