CITY TRADING ACCOUNTS

Evening Star, Issue 22633, 27 April 1937, Page 13

CITY TRADING ACCOUNTS

PROFIT OF OVER £50,000 i SMALL DECREASE ON PREVIOUS YEAR LOSS ON CITY AND ROSLYN TRAMS A total profit of £50,392 11s 3d ’ was revealed in the profit and loss accounts of 'the city trading departments in a statement from the city treasurer’s department submitted to the council last evening. The profit covered the financial year ended bn March 31, and represented a decrease of £6,532 10s 3d, as compared with the previous year, increased profits were recorded by the gas and electric departments, while all other services continued to 'show a profit with the exception of the city and Roslyn trams. NET RESULTS. The net results compared with .those" for ‘ tho previous year are as follows (shillings- and pence omitted):— •

, *Denot« a loss. tDenotes an increase. The above departments contributed ■ £17,384 to the municipal department •in relief of rates and also expended £68,005 on extensions, thus more than accounting for the whole' of their profits. WATER DEPARTMENT. The revenue of the water department has- increased by £1,058 7s 2d over that of the previous year. On the other hand, the expenditure has been, increased as follows:—-General expenses, * £689 14s 7d; maintenance, £1,213 17s ',sd; interest, £3,270 14s 7d; renewal fund' and U.B. relief, £546 13s; depreciation. £4.045; a'total of £9;765 'l9s 7d. This makes a reduction in the net -profit of £8.707 12s sd. . The increase in interest is due to the new loan for Deep Creek water supply; Depreciation, in accordance with past practice; is increased to £8.738,_ which corresponds with: the amount paid during the -past year- as, sinking fund-con-tribution and capital instalment on the Deep Creek loan, which is repayable on: the stable basis. The funds are thus provided for these payments before arriving at the net profit. The expenditure during the year on Deep Creek supply amounted, to £40.290, and this was provided for out of loan, moneys, ' . » In addition to th'e above, the sum of £21,785 was expended on extensions and £14,125 was .withdrawn from the renewal fund account to cover -the expenditure on renewal of, mains.- etc.

t;■ -GAS I :DEPARTMENT. . The revenue' of the gas department shows, an increase, oyer the previous year ,of £2,701. The expenditure on coal increased .by £1,007 due to the extra quantity carbonised and to a small increase in the price. Other working expenses show ah increase of only £l4B, notwithstanding increased expenditure due to recent legislation. Overhead charges are -increased by' £l3B. The total expenditure is thus increased by. £1,293' leaving, an increase of £1,407 in the net profit. Capital expenditure for the year amounted to £3,228. During the previous year the gas department had to bear considerable expenses due to the renewal of the horizontal . retorts, and therefore the extra expense during the- past’ year due to the 40-hour week does not show-up to the same extent as in the other departments, .

ELECTRIC DEPARTMENT. The revenue of the electric department has increased by £18,549 over the previous year, made up as. follows:—Power revenue, £4,485; business lighting, £6,594; domestic revenue, £7,427; sundry revenue, £43; a -total of £18.549. -On the expenditure side there are increases under the following headings:— ■ Payment to Government for power, £3,900; generation expenses; £2,457; distribution expenses, £3,555; overhead expenses, £846. General and sundry ex. penses are reduced by £516. The total expenditure is increased by £10.242, leaving an increase in the net profit of £8,307. During the year the department has expended £34.282 on extensions and has contributed £16,384 to the municipal department in-relief of'rates. In addition, the sum of £34,292 was diverted from the renewal fund contributions and paid to -the municipal department’s “ special works Jund.” During, the past five years the de- . partment has expended £111,500 on extensions out of revenue without the necessity of further borrowing, in addition _ to contributing £81,920 to the municipal department in relief of rates. TRAMWAYS. The revenue of, each section of the tramways department was seriously affected owing to the epidemic during the summer months, and also to a large extent by the unfavourable weather experienced. On the other hand, the expenditure was considerably increased owing to the introduction of the 40-hour week, which was in operation- for about seven months of the financial year, whereas the increase in fares which was rendered necessary was in operation for only two. months of the period. The results show that there has lv»cn an 'increase in revenue of £4,435, whereas the expenditure has been increased as follows:—-Working expenses. £8,983; renewals, depreciation, and TT-.8. relief, £6l; interest and sinking fund, £39; a total increase of £9,083. The result is, therefore, £4,648 worse than the previous year. The expenditure on capital account was £6;710, nearly the whole of this being on account of new buses. Momington.—The Momington tram-way-revenue shows an increase of -miy £39, whereas working expenses are up by £1,198, and interest and renewal fund by' £llß. The net result, therefore, shows a decrease of £1,276 The Momington tramway contribution to the municipal department in relief of rates was £I,OOO. Roslyn.—The Roslyn tramway revenue shows a decrease of £l3B as compared with the previous year. This, however, is accounted for by the fact that since September last the trams have not been operating on Sundays, their place being taken by motor buses, and- this revenue, likewise the exp mditure, has gone to buses account. The

total expenses of Roslyn tramways shows an increase of £l,llß, and the small profit of the previous year is nov. converted ir\. a loss of £1,037. The Maori riill buses, which replaced the electric trams, have ' now been in operation for nine months, and the cost of running for that period—viz., £2,300, is included in the Roslyn traffic expenses. ‘ MOTOR BUSES. The revenue of the buses, which amounted to £19,615 for the year, shows an increase of £5,176 over the previous year. Working expenses, however, have increased by £4,627, renewal fund and sinking fund contribution by £750, and other expenses by £l5B, or a total increase of £5,535. The net profit is, therefore, reduced by £359, and amounts to £53 for the year. The renewal fund contribution is calculated at 2d per mile, and amounts to £2,329 after deducting the sinking fund contribution of £4OO, which is shown as a separate item. Taking the tramway arid bus systems as a whole, there is a Joss of £1,288 during the past 12 months. The first six months showed a combined profit of £3,001, while the second six months resulted in a loss of £4,289. RENEWAL FUNDS. The-operations of the combined renewal funds are as follow: Funds at April 1; 1936, £498,388 13s 6d. Payments into fund, £27,142 12s Bd. Interest earned, £20,036 11s sd. Total, £545,567 17s 7d. Withdrawals for renewals, £81,223 10s sd. Balance at March 31, 1937, £464,344 7s 2d. The decrease in the fund is £34,044 6s 4d, and the interest earned during the year is a shade over 4 per cent. The sum of £51,552 was diverted from the contributions to the renewal fund and paid to the municipal department for credit of the special works fund. INSURANCE FUND. The position of the insurance fund is as follows: Fund as at April 1, 1936, £95,821 2s 6d. Premiums paid into fund. nil. Interest earned, £4,133 2s Bd. ■ Total, £99,954 5s 2d. Claims paid, £2,449 5s 6d. Balance at March 31, 1937, £97,504 19s Bd. - The premiums, amounting to £5,447 15s, were paid to municipal department towards the cost of relief work supervision. LOANS. The only loans raised during the year were for the water department. £25,000; . being the balance of the £IBO,OOO Deep Creek loan, was raised at 3i per cent., and £6,000, being part of the supplementary loan of £13.000, was also raised at 3i per cent., making a total of £31,000 raised during the past year.

Profit Profit 1936, 1937. Decrease 10,521 1,813 8,707 . 4,656 0,064. +1,407 Electric* ’..V i* ■35,401 ' 43,602 +8,307 City- trams •;« .. 3,121 •1,536 4,643 Jfcoslyn tram? 2] 8 *1,037 1,256 Homington trams Buseg ••• .. .3,499. 1,223 1,276 412 53 359 £56,935 £50,392 £6,533