DEFICIT OVER £5000

Grey River Argus, 3 July 1936, Page 3

DEFICIT OVER £5000

GREYMOUTH RATES Increased by £2OOO The Greymouth Borough Council at its monthly meeting last evening, adopted a recommendation, relating to the provisional estimate of receipts and expenditure for the year ending March 31, 193", that the general rate be increased this financial year by £2OOO on last, year’s general rate in addition to the increase on the general rate made to cover the reduction of the water rate.

The Mayor (Mr. W. Meldrum) said that the most contentious matter in the finance recommendations was the proposal to increase the general rate, which it was proposed to increase by £2OOO on last year’s rate. The water rate it was intended, should be reduced from £2600 to £l6OO and that extra £lOOO it was proposed to transfer to the general rate. The reason for the proposal to increase the general rate was that during last year., the Council went back to the extent of £2288. That was the increase on the overdraft after the reduction of the cash in hand, as compared with the overdraft of £2259 when the present Council took office. The increase was easily explained, tie said. Items which went to make it up w-Vre, extra cost removal night soil £lBO, first instalment on aerodrome £5OO, arrears in gasworks depreciation fund, called up and not provided for in estimates £4OO, unemployment relief £467. extra office salary, engineer’s assistant, etc., £250, arrears Mayor’s honorarium, not paid in the year 193435, £2OO, increase in gasworks appliances, fittings, etc. (new stock) £2OO. Along with other smaller corresponding increases, these totalled £3124, and were not provided in the estimates for the year. The Council had gone back £2288 and these items showed some £B3O over that £2288 deficiency. The overdraft was that amount behind and the Council had to provide for it, and the only way to overcome it was to increase the general rate and get back to the figure of £2259 when they took office. They could not cut down the estimates to any great extent. In some eases there were bound to increase. The total increase in the estimates ran into more than the income. There was an increase of £lOO in the Town Clerk’s and officers’ salaries, town hall expenditure £4O, gas appliances, fittings, etc. £2OO, extra reduction in payment of gasworks depreciation fund, abbatoir expenses went up by £124. There was a reduction in the water extensions from £lOOO to £5OO increase pumps for water supply £lOO. Some of the new items of estimated expenditure relief of unemployment £l3OO and a further £6OO on the aerodrame. The total, increases in the Greymouth Borough was £5071. Regarding Cobden a similar increase was shown, with drainage £lOO. increase night soil removal costs £7O, relief of unemployment £5OO, making a total of £B2O. In the provisional estimates nothing was put down this year for the recovery of outstanding revenue, but last year they had put down £3900 and hoped to get more in this year than last, and in fact considerably exceed that amount.

Cr. G. R. Harker asked if the increased rates of pay for the Council's outside permanent staff had been budgeted for. The Mayor said that they did not know yet how the salaries were going to be affected. Cr. Harker said that they would hardly expect the men to work for 15s 4d and the unemployed get 16s. The Mayor: No. but we have to make that up to 16s to get the 10s a week subsidy from the Unemployment Board. Cr. Harker said that the staff would have to have their wages increased to the P.W.D. rate of pay. The Mayor stated that he was giving Councillors the items mentioned from the provisional estimates to show them that there was a necessity to get more revenue in. The increase of £2OOO seemed to he necessary and it was clear that they could not carry on as at present. The general rate used to be s?d in the £, and it was then reduced to 3 l-3d, the present rate. Cr. A. H. McKane said that in 1931 the general rate exceeded £5OOO, and was down this year to about £4OOO. It had been sJdc and was at present 3 l-3d in the £. Cr. J. McGinley remarked that last year the hospital rate had increased £5OO. The Town Clerk (Mr. F. H. Denton) read the general and hospital rate fiom 1929, which was as follows:—l929 General rate struck £5082 (ssd in £), hospital rate £4231; 1930, £5104 (5Jd in £), £5122; 1931, £5297 (5Jd in £), £5562; 1932, £5190 (4 3-10 d in £), £4237; 1933, £4875 (4 47-1000 d in £), £5303; 1934, £4017 (3 l-3d in .£), £4884; 1935, £4014 (3 l-3d in £) £5473; 1936, £4051 (3 l-3d in £), £5222. The Mayor said that it could be seen that the rate had come down to 3 l-3d in the last three years. Cr. J. Kent said that it was realised that it was impossible to do capital works out of revenue, but he thought every avenue should be exploited be fore raising the rate, as the knew that the ratepayers were overtaxed now. One of the items that required looking into was street maintenance. A loan, he considered, should be obtained 'for all new services, and the Council should not endeavour to carry them out of revenue. Cr F. Boustridge said that since 1929 the hospital rate had been increased gradually, but in the last year or two had been reduced slightly. The general rate had been reduced and it had resulted in increased indebtedness at the end of each year. The Council was busv providing a scheme whereby it could raise certain loan monies, but it had not been possible to finalise such proposals owing to the Council not making available to the Engineer, assistance in getting out these, proposals, which was really “cheese paring. ’He thought that if the Council had authorised the necessary assistance, they would have now had the proposition out and the loans subscribed, with the result that there would have been no increase in the rate, and the Council would have had monies ready for expenditure, and would have considerably reduced the Council’s general account. They had now to do something immediately by raising the rate in order to provide money, which the Council should have had provided out of loan proposals. The Mayor moved and Cr. McKant,

seconded that the recommendations of the Finance Committee be adopted. Cr. C. Neville moved an amendment that that portion of the Finance Committee’s report relating to the increase in rates be deleted. He knew, he said, that Councillors wourl say “How are we going to carry on?’’ but if the addition to the staff was going to bo the means of getting in outstanding revenue, and as good as some members had said it would be, then they were going to get a lot of revenue. Councillors would have to agree with that.

Cr. McKane: That’s a great shot! Cr. Neville said that to increase the rate by £2OOO, would mean an increase of 15 per cent., this would be the highest in New Zealand and was going to stop enterprise in building in the town. If the Council adopted a measure to increase the rate, there was going to be an extra increase when the Council struck rates for the new loans proposed. An extra man had been employed by the Engineer, and these loan pi’uposals should have been completed. Cr. McGinley seconded Cr. Neville’s amendment.

Cr. McKane, speaking to the motion, said that whilst it was most regretted that the Council had to increase the rate, he was sure that they could do nothing else at present. No doubt this Council and the previous one will remember that he had strongly advocated loaus, with a view to catching up with the work. He had advocated a £15,00(J loan 18 months ago for unemployment, and to bring the streets up to a state of efficiency and minimise the cost ot upkeep; also to attend to the sewerage at the southern eud of the town, Blaketown, Omoto Road repairs and Bright Street. Cobden. The Engineer had only one pair of hands, however, and he could say that, the Engineer was not overstaffed. If the Council had not been so “cheese paring,’’ it would have given the engineer assistance, and the loan proposals would have been read}' now, instead of wasting another four months. It must be realised that they had to bring the drainage in the town up to a state of efficiency. He did no claim that this new member of the staff would collect £6OOO or £BOOO in outstanding rates, but he felt that the office staff was understaffed and was unable to carry out this particular class offiwork, with other administrative work to be attended to. There were also new works to be completed. Houses were building so rapidly that the Council could not keep up with them, with the result that there was no access to property ami it was necessitious and urgent to provide access to properties; also drainage. The Council was being pressed for privileges and it was its duty to fulfil them, and the occupiers duty to pay for them. If he could see a possibility of a loan, he would say definitely withhold the rates, but the proposals were held up and there was no other way out. He anticipated that the work in front of them to be completed was in the vicinity of £lOO,OOO. The last a vote was taken on such proposals with subsidiary issues taken into account £190,000 was provided, but it was turned down, no doubt on account of the side issues. He would say that they would have to get one loan sufficient to do it all. He could not see any possibility of picking up that £2OOO, without running headlong into another £2OOO this year. Even if they did raise a loan, they would still be down this amount, and thereforce, instead of their being down this year £5OOO, they would probably be down £7OOO next year. He thought that it would be better to stay their overdraft than to let it run on. They had a limit to their overdraft, and if they could not stay it now, it would become so cumbersome that they would have to get a loan to wipo it off if the law would allow it.

Cr. Kent said that he thought that the estimates should have bceu out months ago It was too late to get estimates, after two months of the year was gone. Cr. McKane: We haven’t got the staff.

Cr. Kent: That is alright. We could have them.

Cr. Kent, continuing, said that he did not think that every avenue was explored whereby the Council could cut down expense. He thought that the estimates should have been gone into by the committees. No opportunity, he said, had ‘been given to go into the Vstini’atesy five Councillors attending the meeting, and two objected to the rates going up. The amendment that the clause relating to an increase in rates be deleted from the recommendations of the Finance Committee was then put, and was defeated by six votes to three, being supported by Crs. J. B. Kent, J. McGinley, and C. Neville. The motion was supported by the mover and Crs. McKane, Har-

ker, Boustridge, R. J. Williams and A. A. IT. Paterson. THE PROVISIONAL ESTIMATES The provisional estimates of receipts and expenditure for the year ending March 31. 1937, were: Receipts: Cash in hand March 31. 1936. £1542 12s 6(1 general rate (Greymouth) £4700, ton per cent. penalty on overdue rates £l2O, Government subsidy on rates £365, sanitary fees (Greymouth) £750, licensing fees £l6OO. reserve rents £2OO. S.M. Court fees £lO. hospital rate (not known), cemetery fees (including sale plots) £350, library subs. £220, Town Hall rents £5OO. Abattoir fees £l4OO. sale of gas £7700, sale, of stoves and filings £2OOO. sale of residuals £l4OO. water rate £l6OO water, extraordinary snpnlv £1450, Municipal Bath £100( Government subsidy, petrol tax £llOO. spec'al rate £5200, other revenue £800; total £33 027 12s Gd. Cobden area: — Rates, general £lOOO, hospital (not known), street lighting £l4O, special rate £122, ten per cent, on overdue rates £2O, ra f e subsidy (included in Greymouth), publicans’ licenses £BO. sanitary fees £300: total £1682; grand total £34,769 12s 6d.

Outstanding revenue: Grev area £8959 5s sd. Cobden area £1268 4s 2d; total £10,227 9s 7d. Expenditure: Dr. National Bank on 31/3/36. £5528 3s, cheques unpresented £561 9s 76. total £6089 12s 7d; March salaries and outstanding accounts £l4BB 5s Sil Mayor’s honorarium £l5O, Town Clerk’s and officers’ salary £2OO. a'*'ministration and miscellaneous £l3OO, drainage £lOOO, street maintenance £5OOO, new street work £lOOO stree*’ lighting £9OO, removal night soil £7OO, removal house refuse £3OO. fire prevent'on £495, reserves, recreation, public instruction £7OO. Municipal Bath £l7O, hospital levy (not known), cemetery maintenance £2lO, extension £lOO library and reading room £6OO, Town Hall £370: gas, wanes ami unkeen £6BOO, appliances, fittings, etc. £2OOO, depreciation fund £204 6s; Abattoir £1325; water, wages and upkeep £4OO, extensions £5OO. % power for pumps £1100; Health Inspector £75 3s, Inspector of Nuisances £l5O, women’s rest room £45, unauthorised expenditure £lOO, interest and sinking fund £7OOO, relief of unemployment, out of revenue £l3OO, aerodrome £6OO, total £44.202 7s :!■!. Cobden area: Street maintenance. casual labour, motor lorry, stores etc. £650, drainage £lOO, bridge charges County Council £74 Is Bd, rubbish removal £25, Fox Street bridge £BOO, night sail removal £370, street lighting £164. hospital levy (not known). Inspector of Health £l3 Bs, relief of unemployment (out of revenue) £500; total £2696 9s 8d; grand total £46,898 16s lid.

(’>-. stated that there was a large 'amount of rates outstanding and eons'ant remindershou'd be sent out, and. for this reason an add tional temporary staff ap'lointment was necessary. Twenty-five per cent, of ren s on reserves, he said, and a number of the losses were very many years in arrears.

Cr. Neville voiced his iTsapproval of ftiitlie;' pointments to the staff. l le considered that the temporary ass'stnnt proposed should be g ven other work. It would be better, he -a d, to pay a man eomm ssion to eid'ect ihe accounts. He was surprised at the present staff not attending o this, and : f they were not there was somethii’g wrong. Cr. McKane said he did not know f any other local body office so short staffed. He knew that their s aff was not overpa'd as compared wth othei bodies, and the v had a large volume >f adminis iat : ve work to get through. The Mayor said that the staff had a lot of administrative work to carry rnit. and could not cope with th s work. To have a collec or engaged H ivou’d cost 10 per cent., and w th the proposal now before the Council it woidd onlv cost 1 per cent. Cr. Wili’ams suggested semiring the services of a competent debt c.o.lec o' to collect the money. Cr. McGinley considered that thiswas tho only means of overcoming die matter. Cr. Bous..r dge explained that the staff was engaged in other werk. and this aspect of the Council’s business was meantimo reegated to the background, wh ; ch resulted m people overlooking their obligations, and the Council was compelled to issue summouses, wh'ch was not desired if it could at all be avoided. A motion that the lady cletk be engaged was supported by the Mayor, Crs. Kent, McKane, Paterson, Harker and Boustridge was carried, and ar. amendment bv Cr. Williams seconded bv Cr. McGinley -that the services ot a'competent, debt collector be secured, which was also supported by Cr. Neville, was defeated.