BALANCING GREYMOUTH BOROUGH BUDGET

Greymouth Evening Star, 2 August 1946, Page 9

BALANCING GREYMOUTH BOROUGH BUDGET

COUNCIMANCES CURTAILMENT OF WORKS expenditure ESTIMATES FOR THE YEAR Holding that the rules of procedure did not permit him to place before the meeting an amendment, moved by Crs. Boustridge and Blanchfield, designed materially to change the tabled estimates of receipts and expenditure for the year ending March 31, 1947, the Mayor, Mr. F. A. Kitchingham, nullified attempts to make a last-minute alteration in the plan of the Greymouth Borough Council’s finances for the year, at a special meeting of the council, last evening-

It was the second occasion that the council had met for the purpose of adopting the estimates. On Friday last, when Cr. Boustridge proposed his amendment. Cr. Kent walked from the chamber and left the council without a quorum to complete the business.'

Present at last evening's meeting werethe Mayor, Crs. T. Caldwell, F. F. Boustridge, J. B. Kent, G. R. Harker, W. Herring, H. Hutchinson, J. Stokes, P. Blanchfield, A. L. McKay, and the clerk, Mr. F. H. Denton.

The Mayor, said that, in view of the abortive meeting last week, he had asked the clerk to convene another meeting, by written notice “for lhe purpose of adopting, with or without amendment” the estimates for the year. Councillors would remember the meeting, lasting until after 11.30 p.m., at which the matter was fully discussed. His recollection was that the estimated balance was arrived at. but no formal resolution was passed, it being left to the town clerk to call a meeting for the adoption of the estimates on the suggested basis when they had been drawn up. He (the Mayor) had noted the discussion which had occurred and that trouble did occur over the purchase of machinery. It was possible, he thought, to avoid such trouble that evening. Convening of Meeting.

Cr. Kent pointed out that the meeting last week had been convened for “the purpose of adopting the estimates of receipts and expenditure.’' The present meeting was different, in that it was called, according to the notice, for the purpose of “adopting, with or without amendment, the estimates.” The Mayor said that the notice had not been worded to have any argument, but he had tboxight it might have been possible to'have a discussion, without an argument. Cr. Kent then moved that the estimates, as tabled, and as considered at the previous regular meeting of the council, be adopted. The motion was seconded by Cr. Hutchinson. Cr. Boustridge moved an amendment. that the estimates be approved subject to the following alterations (I) that the £2OOO taken from the Reserves for Machinery Fund be replaced; (2) that V ie reduction in the works and maintenance item by £1289/6/9 be restored; and (3) that the Reserves for Machinery Fund, on expenditure, be reduced to £250 and that the difference thus shown between receipts and expenditure be provided for by way ot overdraft.

Retrograde Move. • He felt that the council, in taking £2OOO from the machinery fund was taking a wrong step, continued Cr. Boustridge. He felt that it was a retrograde move, in that the council had built up a fund oi £2500 for the express purpose of buying machinery and he did not think the council was doing the right thing in taking it, merely to fill in the budget. In regard to the second clause of his amendment, his reason for so moving was that this was the first year since the war ended and on every hand, over the past 12 months and longer the council had had numerous applications for urgent works to be carried out. To reduce the works programme at this stage seemed to be a bad step, insofar as the council had a tremendous amount of back work to catch up. Dealing with the third clause of his amendment, Cr. Boustridge said that in the estimates the sum of £750 was provided for the machinery fund, with the intention of building it up to £3OOO. If the council was to hold the fund, as he suggested at £2500, it could reduce that amount of expenditure by £5OO and still hold the fund at £2500 for the ensuing year. He could not see any advantage in taking £2OOO from the fund and putting £750 back. It was recognised that £250 vws required for the motor truck which had been ordered and which was expected shortly. By leaving the amount quoted in the machinery fund and if the full works programme was carried through, continued v-r. Bousti idge, it would mean an overdiaft of £2689 at the end of the year. Even if machinery was ordered the council would still have £2500 to set against overdraft in the machineiy fund, as infmediate delivery of machinery could not be obtained. On the suggestion of the clerk, Crs. Kent and Hutchinson agreed to incorporate in their motion lor the adoption of the estimates a clause providing for an adjustment .01 the hospital rate, to the effect that it should be reduced by’the amount of th« subsidy to be granted by the Government towards relief of the hospital levy for the year 1946-47. The Mayor said that, briefly, Cr. Boustridge’s suggestion was that the works and machinery fund should be restored and that the works pi ogramme for the year should be increased.

Growth of Borough. In seconding Cr. Boustridge’s amendment, Cr. Blanchfield said he did not quite agree with the three clauses but the disagreement he had was not sufficient to “toss over” the only alternative to the motion. That day he continued, the councillors had’ surveyed the town. They had seen how it was growing, possibly to a greater extent than most places in New Zealand of a similar size. Many new houses were under construction and in the next few months there would be the extra rates from them to help the other ratepayers. One fact had struck him during the inspection of the town, continued Cr. Blanchfield, and that was the wonderful work done by the

bulldozer which had been hired by the council from a private contractor. He maintained that if the council had its own machinery it could do such work much more cheaply and more satisfactorily. Councillors had seen urgent work in Cobden which could not be undertaken because the bulldozer could not be obtained at the moment. If the council was to rely on the old pick and shovel methods it would not get much further, whereas machinery could work in all weathers, and it was the only way to get progress. There might be this year an overdraft of £2600, but it would not be money thrown away. In time to come the council would get it. back in money saved. He believed that the council should show the people that Greymouth was going to be a better town and the only wav to do it was through machinery. To-day, possibly, the council was “paying through the nose” by hiring private machines. “I do not like the idea of an overdraft and yet I do think that we have got to get machinery,” said the Mayor. “Whether the machine previously discussed is the right one it is not for me to say, but we have got to get machinery.”

Continuing, the Mayor said he did not think the council should restore the full amount of £2OOO, as suggested by Cr. Boustridge, and consequently. he did not agree with the amendment to that extent. He thought that if the council had £l5OO in the machinery fund it would be sufficient to pay the first instalment on a machine, which would mean that another £l5OO would have to be found next year. That meant that they could withdraw £lOOO instead of £2OOO from the machinery reserve. He (the Mayor) thought that then the council’should leave the works programme to what it stood at in the estimates. Overdraft Opposed. “In 1938, when I was elected Mayor,” continued Mr. Kitchingham, “the finances of the council had 'gone to the pack’ and we had to raise £9BOO over-expended by previous councils. For that reason I do not like to budget for an overdraft and thus cramft. the finances of the next council to be elected. We have to continue to use the. bulldozer and we may have to use a loader or digger purchased privately for hire. We might just have to finish up the year with an overdraft.”

Cr. Kent: But why budget for it? The Mayor: Yes, and probably finish up with it two or three times as great. Cr. Blanchfield pointed out that the council would not have to pay interest on an overdraft for the whole year as it might only accrue over the last two months of the year.

The Mayor: But we would have to pay in the following year. Cr. Blanchfield: If we spent money on lasting improvements this year, would they not be eliminated next year? The Mayor: I have never seen the programme cut down yet. Point of Order Raised.

Cr. Hutchinson asked how the resolution and the amendment stood in regard to resolutions previously passed on the same subject. Cr, Kent said that a formal resolution had been passed, in the form of an amendment, at an earlier meeting that the sum of £1289/6/9 be deducted from the works programme and that being so, in his opinion, it would take a notice of motion to rescind it. Therefore, the amendment was not in order. After consulting the minute book, the Mayor said he had been under the impression that there had been no formal resolution and that the matter had been left open, as had often been done in dealing with the estimates. However, that did not appear to be the case and, in view of the previous resolution of the council he was afraid that the amendment was not in order. There was provision, however, that £lOOO should be available for the purchase of machinery and it was his personal wish that the sub-committee set up for the purpose should get to work and purchase the machinery. Cr. Hutchinson: It boils down to the fact that we have £lOOO in the machinery fund. Cr. Boustridge: After building it up to £2500, you chop it clown without valid reason.

Cr. Hutchinson: We have a valid reason. “This is tedious repetition,” interjected Cr. Kent. “We were through it all the other night.” The Mayor said that there was never any intention, so far as he was concerned, that the purchase of machinery should be postponed. Cr. Hutchinson said it would take 12 months to obtain the machinery and that had been his objective in moving that £lOOO be provided lor the purpose.

Purchase of Machinery. “If you are prepared to order the machinery now it will not be here before the end of March,” said Cr. Boustridge. “I have no objection to your use of the .reserves, provided that you commit yourselves to the purchase of the machinery.” ' Cr. Kent: That is correct. Cr. Boustridge wants the machinery, right or wrong. “Not right or wrong,” said ' Cr. Boustridge. “It is right. ’ Cr. BJanchfield: That stilb does not overcome the.fact that’the council is burgling a reserve fund set aside for a particular purpose. The Mayor said he would like an vindication as to whether a machine was’ to be ordered during - the current year.

Cr. Kent said he thought it was a matter for the sub-committee set up to deal with the matter.

In reply to a suggestion by Cr. Boustridge that the council would have to carry on “with pick and shovel methods,” Cr. Kent said that all councillors knew that maintenance work was two or three years behind and it was very much pick and shovel work.-* They could look for machinery in the future. The Mayor 'said that he had ' already ruled out the amendment and his own suggestions, were in a similar position. Therefore, he could only put the motion. On being put to the meeting, the motion, that the estimates, as tabled, be adopted, was carried on the voices, Cr. Boustridge asking that his vote against the resolution be recorded.

“I feel very strongly on the question cf machinery,” said the Mayor. “To suggest that we should carry on with a stone crusher without a mechanical loader is stupid.”

Indication was given by some councillors that they would pursue

the matter further, but the discussion was cut short by an intimation from the clerk that there was other business to deal with. STREET MAINTENANCE HEAVY ITEM In order to meet an estimated expenditure of £86,834/15/1 during the year ending March 31, 1947, the Greymouth Borough Council will transfer £2OOO from its machinery reserve fund to the works account. This will prevent the council from budgeting for a deficit in the accounts. The annual estimates of receipts and expenditure, which were adopted by the council at a special meeting last evening provide for the expenditure of £12,868/13/5 on street maintenance and improvements. An amount of £15,282/5/4, is allocated as the hospital levy, but this is subject to adjustment in view of the recent announcement of a Government subsidy. Interest and sinking fund is estimated to cost £13,300. Two amounts for new works included, are £5OO reserved for the re-erection of the town clock and £5OO for public conveniences. The estimates, as approved are as follow: — - , _ , Receipts: Credit at National Bank of New Zealand. District Fund Account £2.791/4/5; Cash in Hand March 31, 1946, District Fund Account £l6l/5/4; General Rate, over whole area (£14.215 estimated to produce) £13,500: Ten per cent penalty on overdue Rates, over whole I area £l5O/0/0; Licensing Fees, including Heavy Traffic .£2,400/0/0; Reserves, Rents, including Streets £230/Offi; Hospital Rate, over whole area £15,282/5/4; Cemetery Fees, including Sale of Plots £450/0/0; Library, Subscriptions, Fines etc, £l5O/0/0; Town Hall. Rents ' £450/0/0; Abattoir fees £2000; Sale of Gas £12,000/0/0; Sale of Stoves, Appliances and Fittings etc. Sale of Gas Residuals £2,800/0/0; Gas Sundries £52/0/0; Water Rate (over whole area £3,117). Estimated to produce £3.000/0/0; Water, Extraordinary Water Supply, W.C. Licenses over whole area £4,000/U/U, Proportion of Petrol Tax from Main Highways Board £1,400; Special Rate over whole area (£10,817), Estimated to produce £10.250; Special Rate over special area of Cobden (£264) estimated to produde £235; Pan Closet Rate over whole area £863), estimated to produce £750; Other Revenue £1000; Outstanding Revenue £8,500, Women’s Rest Room £9O; Special Rate, Westland Catchment Board £693; Insurance Fund already funded to be withdrawn and paid to District Fund £500; From Reserve for Works Account £2.000. Total £36,834/15/1. Expenditure: District Funct Cheques unpresented £2,162/14/10; Mayor’s Honorarium £150; Town Clerk and Officers’ Salaries £2,160, Miscellaneous, including Administration £1,400; Contingencies £150; Drainage £1,528; Main Highways £549; Cobden Bridge charges, payable to Grey County Council £74/1/8; Streets maintenance, Improvements £12.868/13/3: Streets lighting £1,200; Removal of Nightsoil and house lefuse £2.505; Fire Prevention, levy payable to Fire Board £617/10/-; Reserves, recreation and public instruction £1,600; Municipal Swimming Bath £320; Hospital Levy, over whole area £15,282/5/4; Cemetery maintenance and drainage £899, Libiaiy and Reading Room £1,100; Town Hall, including reserve fund £1,100; Gas Department, wages, upkeep .ana materials £14,000; Gas stoves, fittings etc., £2,000; Gas Department Depreciation Fund tbbu, Water Account, wages and Upkeep £1.448; Water Account extensions £963; Water Account, electric power for pumps £1,950; Health Inspector £152; Inspector of Nuisances £3OO/10/-; Election expenses £100; Centennial Memorial Rest Room Contract £100; Interest and Sinking Fund, including interest on overdraft £l3 300; Reserves for Works Department machinery £750; Amount reserved for re-erection of Town Clock £500; Public conveniences £500; Levy Westland Catchment Board £69o_. Abattoir, including depreciation fund £3OOO. Total £86,834/15/1.