BOROUGH ACCOUNTS.

Manawatu Standard, Volume L, Issue 112, 8 April 1930, Page 2

BOROUGH ACCOUNTS.

PAST FINANCIAL YEAR. VERY SATISFACTORY POSITION.

Disclosing a very satisfactory financial position, the Town Clerk (Mr J R. Hardie) submitted to the meeting* of the Palmerston North Borough Council, last evening, a report on.the financial operations for the year ended March 31, 1930 ( and a statement of revenue and expenditure in the general and other accounts. The report was as follows: -

GENERAL ACCOUNT.

The general account commenced the year with a cash credit of £2945 8s 9d and this sum was absorbed when framing the estimates to avoid increasing the general rate. M , The revenue for the year amounted to £64,974 16s 4d, the principal items being as folow: Fees, licenses, etc., £3129 14s 7d; permits to build, £loos', rents, £1867 11s 9d; Government subsidv, £450; petrol tax, £2253 17s 8d; general rate, £27,679 Is 3d; heavy traffic fees, £1193 2s Bd. The expenditure reached £65,425 6s lid, made up of: Street maintenance, £7906 6s; tarring and sanding footways, £4492 19s; kerbing and channelling, £2023 19s 7d; electricity street lamps, £2850; Square gardens, £1045 4s 6d: Fire Board levy, £2084 18s lOd; subsidies, £460; reserves account, £1000; special works provided for on estimates, £2973 12s. The year closed with a cash credit of £2494 18s 2d. The period under review has been a very, satisfactory one and it is very pleasing to note that the council has once agnin lived within its meuns as far as this particular account is concerned. GAS ACCOUNT. The revenue of tho gas department amounted to £45,454 18s 2d as against £46,103 13s 7d. The sale of gas rea r lised £32,172 18s 9d, against £31,538 11s 6d for 1928-29, an increase of £634 7s 3d. The sale of coke realised £3846 14s lid, fittings £2761 7s sd, and the hire purchase receipts £I9OO 7s Bd. It is gratifying to note the small increaes in the sale of gas, brought about principally by the large number of gas cookers installed by the council under its hire purchase system. The expenditure reached £41,123 16s 6d as compared with £48,346 17s 2d for 1928-29, a decrease of £7223 0s Bd. The main items under the head ol expenditure are: Coal, £4860 Us 2d (previous year, £13,571 14s 8d); stok(previous year, £13,571 'l4s 8d); coaling, retorts and stoking, £2457 19s 6d; maintenance distribution, £2884 16s sd; new meters, £1656 6s 7d; tar plant, £632 11s 2d; extension of mains, £1269 15s lOd; interest and sinking fund, £10,948 19a 9d; cookers, £4763 3s Bd. During the year a larger quantity of New Zealand coal was • used than hitherto, thereby considerably reducing the cost- of production. The stock of coal on hand at the close of the year was only 290 tons, valued at £9o6# ss, whbreas on April 1, 1929, the quantity was 1979 tons valued at £6187.105. By utilising, the coal in stock, thereby reducing the quantity usually purchased each year, principally accounts for the big reduction in this year’s expenditure. The year closed with a credit of £1063 19s 2d, which must, be considered satisfactory and shows that the department is gradually re-establishing itself, notwithstanding electrical competition. With reference to depreciation, although the electrical department has been called upon to find the sum of £2BOO, being the amount assessed in respect of the gas undertaking, it is fully anticipated that the gas department will be iff a position to meet portion of the amount required to be set aside for the ensuing year. There are now 2992 cookers in use, 365 being installed during the year. ELECTRICITY ACCOUNT. The electrical department-has experienced another year of progress and still continues to develop. The revenue for the year reached £60,152 10s, as against £55,637 7s 6d for the previous year, an increase of £4515 2s 6d. The most important items under the heaing of revenue are as folow: Sale of of current, £51,924 14s 5d (previous year £43,197 7s 6d); ordinary sales, £3742 17s Id; street lighting, £2850; hire purchase, £420. The expenditure- amounted to £50,205 18s, details being as under: Bulk supply, £B7BO 4s 4d (previous year £8132 9s 8d); coal, etc., £790 15s 8d; wages power house staff and other employees, £4333 8s 7d: purchase of stoves, radiators, etc., £4304 16s 6d; new meters, £1354 13s; extension of mains, £5728 19s 2d; transfonners, £lO4l 10s; power house plant, maintenance, etc., £lOl 4s 6d; interest and sinking fund, £12,760 4s 9d. - The credit balance at the commencement of' the year was £2619 5s 7d, and after meeting all obligations, including the investment of the sum of £4700 representing depreciation in respect of the power house, reticulation, etc., and providing the sum of £2BOO gasworks depreciation, as previously stated, the actual cash credit on March 31, 1930, was no less a sum than £7249 9s Id. With such a substantial credit to carry forward the council could very well take into_ consideration the advisability of reducing, the minimum charges and the charge for currect supplied to radiators. The position of this account as disclosed herein again strongly supports the council in its decision to retain the undertaking/ The total number of consumers is 5065. Advances to consumers are as follow: Total advances to March ’3l, 1930, £31,043 2s 7d; total amount repaid to March 31st, 1930, £30,825 11s 7d; balance- owing, £217 11s.-* The- latter sum is repayable by monthly instalments. • ■ ABATTOIR ACCOUNT. ' - ' Unfortunately owing, to : the .. very poor market for tallow, the. realisations for the yenr have not reached the estimated figures. The sales concerning this particular product.. only., reached £3791 11s lid, compared with £6754 4s 9d for the year previous.- The total revenue of the slaughtering, ( chilling and boiling down departments’amounted to £12,373 14s 6d, including, apart from tallow sales, slaughtering dees £3605 3s 4d; sale of manure £1384 16s 10d,. chilling fees £636; 4s lOd, other sales, etc., £2605 14s 7d. The expenditure was kept down to a minimum, the principal items’ being:— Wages -and salaries, £5175 5s Id; fuel, £875 0s 2d; inspection fees, £3OO 9s Id; purchase runners, £BBB 8s 8d; fat and bones, £1422 Os lid, tallow casks and sacks, £504 16s 7<T; condemned stock and . offal, £449 9s lid; interest and sinking fund, £2092 Is 6a. The present debit balance amounts to £4106 11s lid. The tallow on hand and afloat is valued at £23 per ton, equal to £1583 4s 6d, which sum reduces the cash debit to £2523 7s sd. An early improvement in the. tallow, market is keenly awaited. RESERVES ACCOUNT. On April 1, 1929, the account had a credit of £319 Is Id. The revenne far the year totalled £2887 10s sd, derived mainly from rents, pasturage and

use of greens. The expenditure totalled £3087 19s 2d, the important items being as under:—Upkeep of Sportsground, £5Ol Is 4d ; upkeep of Esplanade, Botanical Gardens, equipment camping grounds, £1765 12s 7d;‘ upkeep of Terrace End grounds, £3ll 15s 3d; upkeep of Milverton Park, £l4O 7s 2d.

The department’s activities are confined principally to the maintenance of the different reserves. A sum of £IOOO was transferred from the general account to enable * the department to meet its obligations. The account finished the year with a Credit balance of £llß 12s 4d. TRANSIT ACCOUNT. The receipts from fares showed a decrease of £725 9s Id in comparison with the returns for the previous year. The revenue amounted to £9251 6s, detailed as follows:—Fares, £6934 0s 2d ; refund repairs to vehicles, £330 18s lOd; bus .advertising, £2lO 10s; hire of buses, £29 2s; refund sale of oil, petrol, etc., £1341 19s 2d; power, £l2 13s fid. The expenditure reached £9353 0s 6d, thus exceeding the revenue by £lOl 15s 6d, the main items being as under: Running expenses, including repairs to buses, £4182 15s 3d (previous year £4934 17s lid) traffic expenses, drivers’ wages, cleaning buses, £3372 4s 7d (previous year £3363 3s Id); painting buses, £B7 11s; drivers’ uniforms, £9 16s; salaries, £364; insurance, £144 0s 2d; ticket waybills, etc., £66 6s Id; heavy traffic fees, £337 3s 4d. ' The account commenced the year with a credit of £478 Is 3d, and although the number of passengers carried during the year is considerably less than the previous year the undertaking shows a cash credit of £376 5s 9d as on' 31st March, -1930. Since the inauguration of the service the revenue derived has not been sufficient to provide the sum of £1386 18s 6d, which represents the annual amount payable in respect of interest and sinking fund on the loans sanctioned by the . ratepayers and amounting to £19,500, and applied towards the purchase of the buses, plant,etc. Such annual sum has been provided by way of a special rate struck over the whole borough. In accordance with the provisions of the Municipal Corporations Amendment Act, 1928, the council is called upon to provide depreciation in respect of the undertaking. The sum of £420, therefore, represents the annual charge under this heading and such sum has been advanced by the general account and inverted in compliance with the Act.

INTEREST ACCOUNT. . The total interest payable last year in respect of the indebtedness of the borough was as follows From special rate, £35,801 8s 6d; from revenue, £34,687 9s 3d; total, £70,388 17s 9d. WATERWORKS ACCOUNT. The income, derived principally from rates, water by . meter and .supply .to consumer outside the borough, totalled £15,947 3s 3d., The expenditure .amounted, to £10,377 0b 2d, which included:— Wages and salaries, £2536 8s sd; extension of mains, etc., £242 17s 6d; interest and sinking fund, . £4993 4s; foundation new filters, materials, etc., £1674. Ils 2d. The account has at present a large credit balance of £5592 14s 4d, which will be absorbed in the payment for the supply and installation of the new filters, which are now on order. If it is the intention to further improve the reticulation within the borough during the ensuing year, a substantial sum could again be allocated from revenue for such a purpose. LIBRARY ACCOUNT. This department ‘ had on April 1, 1929, a credit of £179 17s Id. The receipts from rates, subscriptions, sale of books amounted to £2482 6s 4d. The expenditure was £2518 0s 5d,. including: New books, £562 19s lid; magazines and newspapers, £lO9 13s 4d; salaries, £636 ,15s 9d; printing and binding, £4B 11s 8d; cleaning, £l3B 5a 7d; lighting and heating, £154 11s '6d. The special rate of l-9th of a penny in the £l, struck to provide part of the cost of upkeep, produces £IO3O. A sum of £144 3s represents the present credit balance. The rents derived from the new shops are applied towards the interest and sinking fund on the loan raised for the establishment of the new libraiw building-and are not credited to the library , account. ! • OTHER ACCOUNTS. The following accounts, all of which form part of the district fund, are in credit as hereunder stated: Opera House account, £1237 6s Id; sanitary account, £664 -5s 4d; deposit account, £l6 6s 2d; insurance account, £4Ol 13s 6d excluding the sum of £2634 17s 8d on' deposit with the Public Trustee. DISTRICT FUND ACCOUNT. The district fund account, which comprises all the- accounts mentioned in the foregfting, has . a bank credit balance of £26,050' 12s 3d, and the council has again carried on its undertakings without incurring an' overdraft at the .bank, whereas many local bodies find it very difficult to finance their concerns without assistance from their bankers. I SINKING FUNDS. '! The accrued sinking funds invested with the Public Trustee an 4 bearing interest at the rate of 5i per cent, per annum now amount to £94,560 _9s 5d,and the said sum will be applied towards the repayment of loans becoming due from time to time. ' Moneys invested with the Public Trustee as at 31st March, 1930, were accrued sinking funds, £94,560 9s sd; depreciation -on electrical undertaking, £4370 6s 3d; fire and accident,insurance fund;--£2534 17s 8d; repayment principal employees’ housing loan, £244" 5s 9dj total funds, £101,709 19s Id. l The interest; derived, last year and included in the above total-was £4655 5s 5d.■ ; • • - '• •••; On April 1 of this year the-under-' mentioned additional amounts, had' been lodged with the Public .Trustee:— Depreciation fund:- Electrical undertaking, ' £4700; gasworks, £2800; omnibus . service, £42o;’total, £7920.”" I COLLECTION' OF RATES,; ‘ : The total rates collectable for year ; - was. £80,685. 6s -4d . and the amount, nncojldcted is ,£772‘105-,4d;- .'lt is very gratifying to be able‘to-sub-mit the foregoing figures which, show unquestionably (the - stability', of our) progressive borough. The amount re-‘ maining .unpaid is-less than -last year and I have every hope’of being able to collect during the ensuing year the greater portion of; the amount now outj standing.- ■-

SEPARATE ACCOUNTS. The position of the separate ao counts, which have no connection with district fund account, are as set out hereunder:- —Waterworks loan, cr., £13,060 0s 2d; ' sewerage loan, cr., £1719 6s 6d; roading loan,' cr., £BB 8s 9d; unemployment loans, cr., £B3 2s; housing loan, cr., £1719 18s lOd; cemetery account cr., £420 18s Bd. LOAN RENEWED. With-reference to the. municipal building loan of £5750, which matured on April 1, 1930, I have to report that matters in connection with its renewal have been completed. The required amount to repay the. debenture holders has been raised for a further penoa of ten years, interest being at the rate of 6J per centum per annum. COMMENT BY COUNCIL.

Comenting upon the statement, the Mayor said that it disclosed a very satisfactory position. There was a credit balance of over £26,000 cash in hand in the district fund account. Generally speaking, he thought that the Town Clerk was to be congratulated on the collection of the revenue, more especialy as far as the rates were concerned, and for his persistency and efforts to obtain payment, and the personal interest which he had displayed. Sales of gas had been increased and expenses had ben reduced. Splendid results had been obtained with the electrical department and the large credit balance after allowing depreciation to the gas account showed that the council had been well advised in retaining the plant. The chairmen of committees and heads of the departments were to be congratulated on the year s work. The waterworks account was in a splendid position and considerable expenditure would be devoted next year-to improved reticulation. The need existed for considerable attention to footways during the coming year. The net result of the year’s working showed the council to be in a good financial position, and all concerned were, to be congratulated. The Mayor moved that the report be formally received. - . Gr Eliott, who seconded the motion, stated that the cost of new meters, tar plant and extension of mains in the gas account was really capital expenditure. He added that altogether over £15,000 had been spent in capital works out of revenue. The transit account unfortunately was unsatisfactory, and without taking into consideration allocations for depreciation and interest. Actual runing costs showed a loss. “I wish to compliment the Town Clerk on his collection of the rates. He has the hardest job of the lot,” commented Cr. Clausen.

Cr Guy spoke in similar vein. Cr. Eliott: What about congratulating the poor reatepayer on paying up ? “I. would like to do so, seeing that he has been bled to death/’ added Cr. Guy. -