BOROUGH FINANCES.

Feilding Star, Volume XVI, Issue 4015, 15 June 1920, Page 4

BOROUGH FINANCES.

CR. ANDREW'S CRITICISM. Cr. Andrew said at the meeting of the Council on idiursctay night:—ln the preparation of the estimates of receipts and expenditure for the present year it is ot course imperative that lye should be guided largely by those ol the year preceding, x'his can only be done by a just comprehension of the finances of the Council as sboAvn in the balance-sheets just issued. 1 do not knoiv how the scanning of these has affected other Councillors. 1 have been deeply impressed by the seriousness of the financial position disclosed, Although our increased receipts from rates amounted to £1816, there ivas transferred from the water supply account to the general fund £716 (about £139 more than in the preceding year) and there ivere other additional receipts amounting to £883, making a total of £2,838. Yet we increased oui overwraft by the sum of £4,610. lam aware that from a careless reading oi the balance-sheets my conclusion ivould not appear to be justified, but if you compare the gross receipts of the tivo years and the liabilities of each year you ivill find my figures approximately correct. It must be remembered that although Aye keep the receipts and expenditure of each department as - any business firm would, there is only one source from which the losses from either can be paid, namely, tbe general fund. Therefore tbe overdraft on the electric lighting account, as from th© Library, or any other separate account,, is as much a liability on the general iundi as if it were incurred in maintenance Avork. But if Aye could depend .upon the hope of being empowered to pay off the electric ligMing overdraft in the manner stated by the Mayor and, therefore, exclude it fr.om present consideration, the remaining increase in the overdraft, amounting to £2,623, should still give us cause for serious consideration as to the means to be adopted to prevent an addition .this year. Tbe Mayor stated last night that the electric light ivas so cheap to consumers that in some cases the amount of money saved, in comparison to ivhat Avould be to them the cost of gas, ivas sufficient to pay their rates. At the same time he acknowledged tbe loss to the borough of £70 a month on account of the all-night load. With an overdraft working this department of £2,393, is there any sense *in . incurring a loss of £800- a year to suit a portion of flic ratepeyers? According to the Mayor's ad.miss-.on, as a gas user, I am helping to pay other people's electric light bill. In regard to the transfer of £763 from the water i supply account, I want to knoiv Avbo | gave authority for it to be done. .It is an irregularity if not an illegal act to use special rates for ordinary ex- ( penditure that no Council should allow. It would be better, in my opinion, to increase the general rate to tbe equivalent of the average amount transferred./ To sum up, avo spent last year more than £7006 more than was ■Bpent the year before. It requires little calculation to prove that we cannot continue such lavish expenditure, but must draAV up our estimates this year so as to make the. expenditure balance the receipts. •