Manawatu Evening Standard. WEDNESDAY, APRIL 20, 1932. THE CITY’S FINANCES.

Manawatu Standard, Volume LII, Issue 119, 20 April 1932, Page 6

Manawatu Evening Standard. WEDNESDAY, APRIL 20, 1932. THE CITY’S FINANCES.

Though the marked buoyancy shown in the Palmerston Nortii City Council's accounts a year ago was not anticipated on this ocCasiojn, the civic authorities may be .congratulated on the sound position shown in the financial statement presented by the Town Clerk on. Monday evening. The past year has been a difficult and anxious one for the Council, but prudent management has produced a most satisfactory result when all the circumstances are taken into consideration. On April 1, 1931, the general account was in credit £4682 and the year concluded with, the amount reduced to £323. This is the Council’s principal account, and is made up of general revenue, rates, petrol tax, etc. From it the cost of administration and upkeep of the city is met. While the revenue in the period amounted to £60,606, the expenditure was £64,965. Last year special works were authorised in the estimates adopted by the Council, and the credit balance then shown in the general account has been absorbed in meeting their cost. Had this not been done an increase in the rates apparently would have been inevitable. .The general account has been buttressed to the extent of £2OOO from the electricity account, and this has been a valuable aid in carrying out 'the year’s programme and in keeping the rates from rising. Unfortunately, there is a substantial sum—the largest in the city’s history—outstanding in the rate account, and had collections reached a normal figure there would have been a very fair credit balance in the general account. The burden of unemployment relief upon a local body is strikingly demonstrated in the statement. In the past year £8,433, apart from £677 contributed by the Returned Soldiers’ Association, was spent for this purpose, the amount being provided by a special loan, by an allocation from the general account slightly in excess of the estimate, and by the transfer of £4,550 from the electricity account, further evidence of the remarkable part, it plays in civic administration.

The gas account reveals a decrease, as was noted a year ago, in the sale of the product. The reason ascribed is the care on consumers’ part to avoid waste as part of their household economy. The account was credited with £3,000 from the electricity department, and thereby enabled to meet its obligations and to emerge with a credit balance. Compared with a credit of £9,732 a year ago, the electricity account concluded its year with £3,466 in hand, but it provided in all £9,550 to stabilise other departments. Since 1924, when operations were commenced, its profits have been. substantially drawn upon, and it has proved an asset of striking value to the municipality.. The gas account has been assisted to the extent

of more than £15,000 to meet its large interest and sinking fund liabilities and the general account by nearly £9,000. In addition, last year the unemployment relief received the contribution of £4,550. The abattoir and transit departments are still suffering from general conditions, and whatever the City Council does to try and improve the bus service seems to fall badly short in results. The decline in fares in the past year, averaging £lB weekly, is a serious matter; There has been a progressive shrinkage in the revenue for at least two years past, and the problem that first faced Councillors is no nearer a solution. Other accounts are in a reasonably satisfactory condition. The credit in the district fund account, which comprises all the city’s accounts, is £2,525. Compared with £17,000 a year ago, the position may read unfavourably but, as stated, a difficult year has ended satisfactorily. The Mayor recognises that relief must be given to ratepayers, and the statement makes it clear that if special works are not undertaken this year a “considerable reduction” can be made in the rates. This should be the aim of the Council, for now, more so than at any other time, is it imperative to make the path of citizens as light as possible. The city’s progress will not be afected by the postponement for a year, or even two, of special works which are not urgent.