BOROUGH FINANCES.

Manawatu Standard, Volume XLIX, Issue 110, 9 April 1929, Page 2

BOROUGH FINANCES.

STATEMENT OF ACCOUNTS.

STABLE POSITION DISCLOSED.

COUNCIL EXPRESSES SATISFACTION.

Showing a credit balance of £3636 10s 8d in the general account, and indicating a substantial improvement in different branches of municipal activities, a comprehensive financial statement covering the period from April 1, 1928, to March 31, 1929, was submitted by the town clerk to the Borough Council last evening. Satisfaction was expressed at the stable position disclosed and it was stated that an increase in the rates was not likely

COMMENT BY MAYOR.

“I wish to congratulate the town clerk on the complete nature of the report and the promptitude with which it has been issued,” commented the Mayor. “I think that the council must feel satisfied at the financial position disclosed and also must be extremely gratified.” Proceeding to make brief reference to the salient features of the statement, Mr Graham said that, of the total amount of rates levied, only £844 9s was outstanding, and in view of the adverse economic conditions during the last twelve months that must be regarded as very satisfactory, as it represents only a small percentage of the total. The collection of rates had, however, been exceedingly difficult, and under the circumstances it was a matter for gratification to know that such a small amount was outstanding, even although it was greater than had been experienced previously. Payments were still being made and it was anticipated that within a months practically the whole of the amount would be paid. His Worship referred to the amount transferred from the electricity department to the gas department in order to stabilise the finances of the latter. Considerable capital expenditure had, he said, been incurred in purchasing stocks of coal and gas cookers, but it was justified. The abattoirs account showed a great improvement, while tho Opera House account had a splendid credit balance. The new council would, continued the Mayor, come into office with the finances in a very sound position, and lie specially eulogised the vigilanco of tho various committees for the care and foresight exercised in controlling the expenditure, close attention having been given to tho business of the council.

Cr. Fitzherbert commented favourably on the sound state of the electricity account, and the excess of revenue over expenditure which had enabled an amount to be transferred to the gas department. Cr. Eliott stated-that the sale' of gas cookers was a good feature, even if the capital expenditure was increased. Replying to Cr. Milverton, the Mayor expressed tho opinion that it would not be necessary to increase any of the rates. THE GENERAL ACCOUNT. Tho statement made by the town clerk of receipts and expenditure in the general account, together with similar details concerning gas, electricity, abattoir, reserves, transit, library and other accounts, was as follows: — At the commencement of tho year the general account carried forward a sniall cash credit iof £125 17s 2d. The ordinary revenue for tho year amounted to £61,658 7s sd, the most important items being: Licenses £3781 12s 2d, petrol tax £1661 13s sd, rents £1706 17s Id, permits io build £BOS 15s, 6ewer connection £BBI 14s Bd, footways £542 Is Id. The receipts in respect of most of the items above-mentioned are considerably in excess' of the estimated amounts. '•

The expenditure amounted to £58,147 13s lid, which sum includes the • following: — Street maintenance, material and wages. £BB7I 15s 3d, watering and sweeping streets £IO9O 13s lid, tarring footways £3235 13s 6d, operating and maintenance of crusher £983 4s lid, street lighting £2BOO, Square gardens £IOOO 6s, Fire Board levy £2014 2s 9d, sewer connections and extensions £1343 7s Id, reconstruction Ferguson Street, West Street to Eitt Street £llll 15s 7d, Avenue Road bridge £306 10s, extension Limbrick Street £225 13s Id. The year closed with a substantial credit of £3636 10s Bd, including heavy traffic fees amounting to £691 Is lid. As far as the general account is concerned, 1928-29 has been a most successful year, and it is very gratifying to bo able to report that the council has once again lived within its means. With such a large credit to carry forward the new council will be able to devote a greater portion towards new works or the resurfacing of footways. DEFICIT WITH GAS. ,

Tho revenue for the year for the gas account amounted to £46,103 13s 7d, compared with £44,817 10j 7d for the previous year, an increase of £1286 3s. The expenditure totalled £48,346 17s 2d as against £45,394 93 9d for J. 927-28, an increase of £2951 17s sd. The principal items under the heading of revenue are: —Sale of gas, £32,538 11s 6d (previous year £31,685 7s 6d); sale of coke, £3402 Is 8d; sale of fittings, £2llß 8s 3d; payments hire purchase £1607 6s 7d. Tho main items of expenditure are: — Coal, £13,571 14s 8d (previous year (£9033 5s lOd); freight and cartage, £4653 7s 2d; coaling retorts and stoking, £2442 ,13s 4d; now meters, £865 5s 10d: extension of mains, £l2Ol 12s 4d; wages, £4485 13s lid; interest and sinking fund, £11,347 16s 3d; purchase cookers, £3430. v There aro now 2627 cookers in use, 356 being installed during the year. Consuihers now total 4752. The cash deficit on tho years working amounted to £SBOO, which sum exceeds tho cash debit of the previous year by £1414. The department has on hand 1979 tons of coal valued at £6187 approximately. Tho stock may seem heavy, but it is always advisable to have a large quantity on hand in case of strikes, etc. Fortunately, tho electricity account was in a position to reimburse tho gas account to the extent of its debit; otherwise, it would Imvo been necessary to strike and collect a special rato of at least 3-sths of a penny in the £1 to provide the amount required. Tho credit at the close of the year’s operations was only £3Ol 10s 7d. PROFIT FROM ELECTRICITY. The Electricity Department has onco again experienced a most successful year. The account carried forward a credit of £1152 15s 5d on April 1, 1928. The receipts for the year were £55,637 7s 6d, showing an increase of £8458 5s 4d over tho previous y ear - 3 . , Details of the receipts are:—Sale of current, £43,197 7s 6d (previous year £39,373 6s 9d) ; streot lighting, £2800; sale fittings, etc., £2763 17s 6d; current purchased by Public Works Department, £2260 11s 9d; hire purchaso receipts, £764 14s 6d. The expenditure totalled £54,170 17s 4d, compared with £48,471 13s 7d for 1927-28. Tho principal items are given as follow: Purchaso bulk supply, £8132 9s 8d (previous year £6258 6s); coal, freight, etc., £3775 18s 2d; wages power house staff, othor employees, etc., £5494 18s 4d; purchase stoves, radiators, etc., £3246 0s lOd; new meters, £IOOB 0s 3d; extension of mains, £5828 2s sd; transformers, £484 3s Id; power house plant, maintenance, etc., £B6B 5s sd; oil, etc., £464 16s 7d! interest and sinking fund, £12,838 0s Bd. A further sum of £2OOO has boon placed to tho credit of the renewal fund account, and on March 31 last the value of such account stood at £4152 6s 9d. There are now 4631 consumers. Tho account has a cash credit balance of £2619 5s 7d. Total amount advanced to consumers to March 31, 1929, £30,519 12s 7d, total amount repaid, £30,263 3s 7d; balance owing, £256 9s. The latter sum is repayable by monthly instalments. ABATTOIR. FINANCES IMPROVE. The revenue in the abattoir account amounted to £14,346 4s 2d, including:— Sale of tallow £5754 4s 9d, slaughtering fees, £3643 Os’ Id, sale of manure and oil £1265 11s 2d, chilling fees £628 17s 9d. The expenditure was £13,856 11s 2d, tho chief items being as under : —Wages £4505 14s Bd, fuel, coal, etc., £l2lO 8s sd, purchase casks, fat, bones, etc., £2062 5s Id, interest and sinking fund £2092 Is 6d. The

latter charges have again been met out of ordinary revenue. Reviewing the operations of the department f6r the past two years, being the term of office of the present council, tho debit balanco of £3728 4s which existed on April 1, 1927, has been reduced by £BO9 18s 5d as the result of careful management. The present debit balanco is £2918 5s 7d. Mention should also be made that the department had on hand on March 31, 1929, tallow to the value of £582, which further reduces the cash debit. CONTROL OF RESERVES. On April 1, 1928, the reserves account had a credit of £449 6s Bd. Tho revonuo for the year amounted to £3848 3s 3d and as detailed hereunder is derived principally from rents, etc.: —Rents of reserves £1315 14s Bd, rent bowling greens (pt. of year) £320 10s, Cricket Association £SO, transfer general account £9OO. Tho expenditure was £3978 8s- lOd, including :—Sportsground maintenance £4OB 14s 2d, upkeep Esplanado £1617 18s lOd, upkeep bowling greens (part of year) £582 5s 9d, upkeep Terrace End Park £329 17s Id, preparation Botanical Gardens £176 11s 3d, preparation Milveiiton Park £416 Is 6d. Tho account finished the year with a credit of £319 Is Id. TRANSIT ACCOUNT FIGURES.

In the transit account receipts from faros show an increaso of £365 3s 5d over 192728. Tho total revenue was £9852 8s 4d, as detailed hereunder: —Fares £7662 14s 5d (previous year £7297 11s), bus advertising £234 ss, hiro of buses £BS 7s Id, refund sale of petrol, oil, etc., £1509 Is 6d, rofund repairs to vehicles £315 6s lid. Tho expenditure reached £10,116 12s lid, thus exceeding rfio revenue by £264 4s 7d. The excess of expenditure over revenue is accounted for principally by the payment of heavy traffic fees amounting to £420 12s 2d. Representations asking for tho exemption of tho payment of the fees have already been made. The expenditure items aro as follow: Running expenses, including repairs to buses £4934 17s lid (previous year £4092 8s 6d), traffic expenses, drivers’ wages and cleaning buses £3363 3s Id (previous year £3526 7s 7d), heavy traffic fees £420 12s 2d, painting buses-£lO4 5s 4d, drivers’ uniforms £sl 18s, salaries £338 15s 3d, insurance £159 8s lid, tickets, waybills, etc., £73 16s 9d, miscellaneous £230 15s 7d. Although tho revenue derived each year is insufficient to meet interest and sinking fund on tho loan indebtedness, it is very satisfactory to noto that tho account is able to meet ordinary running and traffic charges. Tho account carries forward a credit of £478 Is 3d. MEETING INTEREST CHARGES.

Tho annual interest and sinking fund payable in respect of the indebtedness of the borough was as follows: — £ s. d.

With regard to the sinking funds invested with the Public Trustee and which bear interest at the rate of 5i per cent, per annum, I desire to say that the total value of the accumulated funds on March 31, 1929, was £80,798 2s 6d. Such sum, together with future instalments, is to be applied

towards redeeming the loans at date of maturity. WATERWORKS COSTS.

The position of the waterworks account was as follows: —Credit balance April 1, 1928, £546 3s lOd; revenue, £15,574 Is lid; expenditure, £15,097 9s 6d. The expenditure comprised: Interest and sinking fund £4993 4s, cleaning dam £3059 4s 6d, extension of mains £2484 12s 4d, wages £1964 Is 6d. A credit of £102? 6s 3d is available for allocation next year. LIBRARY IN CREDIT.

The library department had a credit on April 1, 1928, of £7B 2s sd. Tho receipts from rates, subscriptions and 6ale of hooks amounted to £1636 18s 7d. The expenditure was £1536 3s lid, including new books £3OB 17s, newspapers and magazines £IOB 9s lOd, printing and binding £195 12s 7d, salaries £574 lbs 4d, rent £SO. The special rate of l-9ths of a penny in the £l, struck to provide part of the cost of 1 upkeep, produces £IO3O. With reference to the early "removal to the new building, it is hoped that thedepartment will further develop under the new conditions and that an increase in the number of subscribers will be the result. A sum of £179 17s Id represents tho present credit balance. DISTRICT FUND AND RATES. The fallowing accounts, all of which form part of tho district fund account, are in credit as stated hereunder: —Opera House account £1793 17s, sanitary account £579 16s 7d, insurance account £605 3s 7d (apart from £1590 on fixed deposit), housing account £353 13s lOd.

Tho district fund account which embracos all the accounts. mentioned in clauses 1 to 10 hereof, has a bank credit balance of £9716 7s which sum will considerably help the new council to meet ' its obligations prior to July 1, 1929, being the date of payment of rates for 'the ensuing year. The total rates levied for the year 1928-29 were £79,898 10s lOd and the amount uncollected at 31st March, 1929, was £844 9s. With reference to the large sum outstanding, although the amount is in excess of former years, -1 fully anticipate that there will be little difficulty in collecting the greater portion during the current year. ! ’ SEPARATE ACCOUNTS. The position of the separate, accounts which have no connection with tho district fund are as set out hereunder tric traction loan, £3812 10s 4d; cemetery account, £697 18s 2d; roading, Loan, £9O 0s lid; Cemetery loan, £416.9s 8d; Hokowhitu stormwater drainage loan, £900; Hokowhitu sewer loan £476 Is lid; housing; loan, £2537 8s lOd; unemployment relief loan, £BO 2s Od; bus loan, £271 17s sd; library loan, £3375 13s 8d; sewer loan, £3745 17s 4d. Referring to the sewer loan of £9OOO, being portion of a loan of £16,000 sanctioned by the ratepayers on February 15, 1928, the expenditure to date amounts to £5254 2s Bd, leaving a balance in hand of £3745 17s 4d.

In order to provide funds to enable tho council to let further contracts, it will, therefore, be necessary to raise at an early date tho balance of the loan moneys.

On April 1, 1930,'the sum of £ISOO, being portion of the electric light and power plant loan of £IIO,OOO, will fall due and in all probability the electricity account will be in a position to repay the above - mentioned sum, less the accrued sinking fund. DEPRECIATION ALLOWANCE. Under the provisions of tho Municipal Corporations Amendment Act, 1928, local bodies shall each year after making provision for the payment of interest and sinking fund, in respect of any loans in connection with any trading undertaking, make a charge against the revenues of such undertaking to provide for proper de. preciation. This is a very important matter and conoerns all the trading undertakings controlled by the council and the question of carrying out the provisions of tho Act will, therefore, require serious consideration early in tho ensuing year. J The council adopted the report.

From special rates 29,349 12 5 From revenue 33,317 6 2 Interest on deposits .... 342 10 0 £63,009 8 7