SERIOUS STATE

Hawera Star, Volume XLVI, 30 July 1927, Page 5

SERIOUS STATE

FINANCIAL POSITION. SYDNEY CITY COUNCIL. BIG DEBENTURE DEBT. BY CABLE—PRESS ASSOCIATION—COPYRIGHT. Received 11.20 p.m. to-day. SYDNEY, July 30. Tjlie .serious financial position of the Sydney City Council is revealed in a report of the City Treasurer to the financial committee, the report showing that the present debenture debt of the city is £14,553,121. of which. £6,900,tXK) is chargeable to the electricity department and £7,602,000 to the city rates. To the latter has to be added £3,068,000 estimated resumption commitments, and other loaiits amounting to £126,000, bringing the debenture debt in this department commitments to £10,797,000. In addition the debt on the electricity department lias to be augumented bv contract commitment®, approximating nearly three million, bringing the electricity debt to about £10,0'!0'(X)0 and making the total council indebtedness nearly twenty-one millions. The 'annual interest and debt sinking fund on £10.797,000 chargeable to the city funds amounts to £640,000 or a rate of approximately 2£d in £1 on the present city assessments. It is estimated that 53 per cent, of the revenue from rates in the current year will be required to pay interest and sinking fund. The treasurer added that £3,194,000 will have to be l borrowed to meet uncovered council commitments.