CITY FINANCES

Manawatu Standard, Volume LX, Issue 123, 23 April 1940, Page 4

CITY FINANCES

THE YEAR REVIEWED, CONSOLIDATED ACCOUNT CREDIT Presenting lii.s report on the city's finances for the year ended. March' 31, 1940, to a meeting of the City Council, last evening, the town clerk (Air J. 11. Hardie) outlined that the year closed with a credit balance of £11)50 (is Sd in the district fund account(tins being the. consolidation of the other individual accounts) as against a dehit of £3028 13s 8d at the commencement of the year. The general account closed with a debit of £' 1080 4s 2d as against a. credit of £2240 2s Id at the beginning of the year. This was considered satisfactory in view of extraordinary expenditure which bad been incurred. In the course of bis report Mr Hardie stated: The revenue of the general account for the year amounted to £68,063 16s 2d, as against £65.766 17s 2d tor 1938 39. while the expenditure totalled £71,696 2s 5d compared with £00,809 6s lid in 1938-39. The account commenced the year with a credit of £2249 2s Id. and deducting this sum from, the difference between tile total receipts and the total expenditure results in a debit balance of £1383 4s 2d. which must he considered satisfactory as far as this particular account is concerned, especially in view of the fact that the expenditure included £li2s in connection with the purchase of new gradei. motor-lorry and motorcars, as the council’s contribution to the AAclliimton Provincial Court at the New Zealand Centennial. Exhibition and local celebrations. £1059 lor library alterations. £265S for the purchase o the premises adjoining the Council Chambers, and £941 lor the purchase of a new bus. In addition, the amount transferred from the general account to the reserves account was £-1000, compared with £2OOO tor tlie previous year. . , The principal items of receipts ami expenditure are as follow: Receipts.—Fees, licenses._ctc. ; £W'J (3s 2d: permits to build. £709 is oil; rents, £2590 17s 2d; baths and lavatories, £760 16s Id; sewer connections, £O7B 6s lOd ; petrol tax, £5859 10s; transfer from electrical account, £2500; transfer from waterworks account. £4000; transfer from district fund account, £3000; general rate, £21.385 16s Id; arrears, general rate, £2325 13s 6d ; office expenses, £4OOO. Expenditure. —Street maintenance (including wages, materials, watering streets, upkeep road lorries, tractors, etc.), £16,755 8s id; street lighting, £3000; sewer maintenance £1132 2s 3d; stormwater drainage expenses. £1361 10s; traffic expenses. £1771 8s Sd; street marking, £4lO 19s Sd ; salaries, £9151 Is Sd ; printing and stationery, £BIO 18s lid; cleaning, £336 14s lid; legal expenses. £ll2 13s 2d; dog £L’u 10s 7d; Square gardens, £IOBO 13s 10c!; subsidies, £IOO7 2s 9<l; transfer to reserves account, £4000; special work, £ll2O 19s; Mayor’s relief, £958 6s 5d ; new bridge. Botanical Roach £173 Ss 2d; private crossings, £056 19s 2d : Fitzroy Park. £520 0s Id; traffic lights, £274 4s 10d; dressing sheds, Takaro Park, £2l-1 3s Sd. MAYOR’S FUND. The. funds allocated have again been judiciously applied in assisting many ratepayers and residents in need of help, and the following figures disclose particulars of the year’s operations :—Ratos, £263 Pis oil ; gas and electricity, £472 19s lit ; cash £lB 7s stl; R.S.A., £224 165.; levy £4l 4-s 9d ; cycle allowance, £7 3s 9d ; total, £IO2B 4s 3d. From this sum arc to be deducted the transfers and refunds from the Returned Soldiers’ Association, which amounted to £69 1/s J od, making the net expenditure this year £958 (3s sd, compared with a relief expenditure of £IO6B last year. ELECT 11ICITY ACCO UXT. In the electricity . account the I charges to consumers amounted to £69,128 16s Od, compared with £66,701 12s 3d for the previous year. Inc working expenses totalled £40,581 Is 4d, an increase of £5948._ ‘'Energy purchased” increased !>,v £5944. Gnpital expenditure amounted to £6299 2s lid '1 no balance of the .net revenue account was £18,395 5s 2d as against £21,137 8:s 2d for 1938-39, winch must ho considered very satisfactory when the substantial reduction in charges for domestic heating and cooking made on June 1, 1939. is taken into account. The reduction is also reflected m the trading account, wherein sales have increased from £4357 in 1939 to £0941 in the year under review. Consumers benefited by the reduction to the extent of £3200. GAS ACCOUNT.

The results of the gas department reflect the increased costs due to increased wages and dearer coal. r llie sum of £-10 657 represented the revenue of the working account for the year just closed, compared with £40,524 last year. I he sales ot gas showed an increase ot £637, whilst tar sold i net eased by £3OO. Sales of coke were down £IOOO. The working expenses amounted to £31.833, an increase of £741 compared with the previous year. Tlio principal items are <as follow, those for 1940 being given first and those tor parentheses: Coal, £16.525 (£16,257); wages operating, £4485 (£4241); maintenance plant, £956 (£928); salaries, £l2lß (£1192); meter repairs, £693 (£856); main maintenance, £526 (£633). The trading profit amounted to £1655, compared with £1316 tor 1935-39. 39. The capital expenditure incurred during the year amounted to £7542, and of this sum £-1000 has been recovered from the depreciation fund commissioner. The net revenue account shows a credit balance of £3284 7s Id as compared with £3420 5s 8d in 1939. The net revenue balance was slightly more than sufficient to meet the charges for sinking fund, but tile debit for capital -expenditure leaves the appropriation account for the year with a debit of £1437 3s. The accounts owing by consumers at March.3l, 1940. for gas jind supplied amount to £3735 5s Bd. as compared with £4875 6s 7d at March 31. 1939. Against this there-is a reserve for had debts amounting to C2BS3 13s lid. ABATTOIR ACCOUNT.

The revenue I'or the year in the abattoir was as follows : —Slaughtering department, £5991 Us Sd; boiling down department, £4384 2s; total, £10.375 ltis Bd. The working expenses, including purchases, were £BSI3 8s Sd, tile principal items being: —Slaughterhouse: Wages, £2059 16s 3d; purchases of runners, £824 7s 3d ; depreciation, £OO3 10s 9d; cost of steam and power, £475; stock inspection fees, £230 17s Id: maintenance plant and’ buildings. £2Ol Is 2d_. Boiling down plant: Wages, £OB2 15s 4d; purchases £951 17s 3d; depreciation, £717 13s 5d ; cost of steam and power, £475 ; freight and cartage, £327 0s lid ; drums, £250 5s 4d. The capital expenditure was nil. The following is a comparison of the consolidated statement of profit and loss as at March 31, 1940, with that at the same date 1939: Slaughterhouse. 1940. loss, £24 5 0s Gd (1939, loss, £216 12s); lees, 1940,

£4022 11s Gd (£3824); boiling down, 1940, loss £672 6s 7d (£B4l 14s 8d). RESERVES ACCOUNT. The reserves account commenced the year with a debit of £2339 3s 3d. Die revenue from rents, pasturage, use of Sportsground and bowling and croquet greens amounted to £1535 Is lid, camp site fees £257 2s, other receipts £45 7s Od, making a total, including the transfer of £4OOO Ironi the general account, of £5837 Pis sd. The expenditure totalled £3973 6s 9d, details being: Sportsground, £oi3 2s sd; upkeep Esplanade and Botanical Gardens, £934 17s; North Street Park, £127 8s lOd; Terrace End Park, £399 3s (3d; Takaro Park, £164 12s lid; Milverton Park. £36 16s Sd ; salaries, £4BO IGs'od; camp site, £389 4s 9d; new street construction, £240 11s od; Hokowhitu Domain. £B7 4s Sd. '1 he debit balance at March 31, 19-10, was £474, 18s 7d. LIBRARY ACCOUNT. The year’s income in the library account is derived front rates, books rentals, subscriptions, sale .of books, etc., and amounted to £5179 2s Bd. The expenditure amounted to £4220 3s 3d, and was as follows: New hooks, £1978 11s Id; magazines and newspapers, £lB4 9s 4cl; salaries, £ll9B 10s od; cleaning, £245 18s 2d; printinn and binding, £142 10s 4d; lighting and heating, £l6O 8s od. A special rate of nine-twentieths ol a penny in the £ was struck *aiul a stint of £394,3 was duly collected and credited to the ncrouni-, which ends the year with a debit of £llO 7s od compared with the estimate of £3(56. The amazing progress made by the library during the financial year just ended is a justification of the council s policy m providing a free library service in the non-fiction section and junior division, together with the establishment ol a rental hook club. Owing to the excellent choice of books available to the public in nil departments tbo membership has increased from 4091 in LMJ to 7140 at. March 31. Prior to the alteration in policy the meniltersliip was 1156. The amount received in respect ol the rental book department, £lOl6 12s 3d. must ho very satisfying to the lihrarv committee. The attractive surroundings in which the junior division is now housed provides an environment of culture the benefit or which will be felt in the community in later years. WATERWORKS ACCOUNT. The credit balance carried forward at the beginning of the year in the waterworks account was £‘llso 11s 5(1. The revenue lor the year amounted to £19,213 5s 3d, the main_ items being: Water rate, £16.364 5s 7d; water by meter, £2130 4s 3d; supply to consumers outside city, £420 12s Sd; sale of pipes, materials, etc., £B3 7s Del; services, £ll9 6s 4d Die expenditure totalled £10,545 Ss, asunder: Wages and salaries, £2584 13s 4d ; materials, £773 8s lid; mains and meters. £1154 16s lOd; cieetric power. £797 14s 9d; artesian bores. £137 Cs (id; transfer to general account £4000; interest and sinking fund, £6363 12s sd; office expenses, £4OO. The account closed with a credit of £3518 8s Bd. TR ANS IT A CCOUNT. A comparison of flic accounts for the last four years makes very interesting

10t.6 rUI " costs £5396 £6123 £6823 £7592 1 > ji* :Si CH fir f'rs carried 513.365 544.174 587.771 642.536 Running results *£353 '"£6l7 *£374 *£24B •Profit. The profit and loss account also reflects the position and the figures for the transfer to net revenue account for the periods mentioned above are: —1937 dr. £79 I ts 9d ; 1938, or. £302 11s Id"; 1939, or. £44 As 8d ; 1940, dr. £164 14 s sd. AERODROME ACCOUNT. The total revenue for the current year in the aerodrome account was £2066 13s sd, the principal items being:—Landing lees, £300; rental. £139 10s; sales of wethers, wool and bay. £771 15s 9d. The expenditure amounted to £2i32 2s Gd, the mam items being: Wages, £497 4s Od ; purchase of sheep, £527 Os Sd; maintenance £295 12s Id. The account closed with’a debit of £665 9s Id. The position regarding slice]) at the aerodrome is that at March 31 there were -in head of stock on the property. Kales ot wool amounted to £153 4s 2d, anil, taking the stock on hand at the purchase price, the profit for the year oil this account is £257 15s 4d. In addition, the sheep obviate the need tor mowing the grass on the flying field and this therefore must he regarded as a. very satisfactory result. ' CEMETERY ACCOUNT. During the year the sum of £1316 19s 7d was expended in connection with the two cemeteries controlled by the council, covering sexton’s wages and also materials used in connection with the scheme for improving the cemeteries. The result has been most gratifying and the enhanced appearance of the approaches anil the cemeteries reflects great credit on those responsible for carrying out the work. OPERA HOUSE ACCOUNT. The Opera House account had a credit. of £440 19s 4d at March 31 last, and this must be considered creditable when it is remembered that vast improvements have been carried out both in the Coronation Hall and the Municipal Hall. OTHER ACCOUNTS. The position of the undermentioned accounts (in credit) is_ Deposit account, £3353 5s sd; sanitary account, £397 17s sd; housing account, £517 2s od. RATES. Total rates struck for year 1939-40, £92,506 10s 9d; amount outstanding at March 31, 1940, £3855 Is 3d. The amount collected represents 95.83 per cent, of the total amount struck, as against 94.79 per cent, last year, and 92.3 per cent, for 1937-38. The total of all rates unpaid on March 31, 1940, was £6846 compared with £BS-12 14s 4d at the corresponding date last year. The council this year decided to again oiler a discount of 2) per cent, on rates paid within one month of date of demand, and this concession to ratepayers involved the sum of £1316 15s 3d. DISTRICT FUND ACCOUNT. The district fund account, which comprises all the accounts mentioned, has a credit balance of £1950 6s 8d as against a debit of £3028 13s 8d at the commencement of the year. REPLACEMENT OF MOTOR VEHICLES. I The council is not under any obiigaI turn to set up replacement accounts in I respect of its motor vehicles (other | than those operated hv trading depart- | incuts), and .1 therefore suggested to the council that some provision . be inade'in the estimates for the year just Glided for the replacement of such vohi- les in order that the cost of doing so might he spread evenly over the ensuing years and thus avoid the need for n huge amount to ho provided for this purpose in any one year. This suggestion was agreed to by the council

and the sum of £515 covering vehicles in tlie general, waterworks, sanitary and traffic departments was appropriated and invested in the Rost Office Savings Bank account. The balance of this account at March 31, 1940, was £520 2s 6d. 'INVESTED WITH PUBLIC TRUSTEE. As at March 31, 1940, the various funds invested with the Public Trustee, show certified balances as follow : Accrued sinking funds, £66,710 13s; depreciation, electrical undertaking £52,785 10s 3d; depreciation,-gas undertaking, £12,424 13s sd; depreciit; tion, omnibus undertaking. £3S 8s 4d; fire and accident insurance hind, £10,733 19s 9d: repayment principal, employees’ housing loan, £278 5s Id; total funds, £142.971 9s lOd. LOAN ACCOUNTS. The position of the loan accounts, which have no connection with the district fund account, are in credit as stated hereunder:—Airport loan ot £20,000, £317 15s Id; Hokowhitu sewer loan of £12,000, £132 12s 4d; sewerage loan of £IO,OOO, £367 5s 4d. MOVEMENTS OF PUBLIC DEBT. As previously pointed out the amount of loan maturing on June 1, 1939, was £21,000, and the indebtedness of the city was reduced by this sum on that date. Under tbe terms ol the conversion order the further sum of £22,000 of loan debt matures on June J, 19-10. This does not confer any advantage. oil special rate account as the sinking fund payment for the current financial year will lie increased by payment thereto of 4), per cent., on the debentures amounting to £70,980 which matured up to June 1, 1939. A further sum of £IO3O 17s 111 was also repaid in respect of Conversion Loan No. 2, which now stands at £31.806 Is Id having been reduced from £36,975 in ’ 1934. In addition, tbe following portions of loans raised on the instalment repayment system were repaid during the year:—Airpct loan of £20,000, £755 .13s 2d ; sewerage loan of £IO,OOO. £357 9s; waterworks loan No. 1 of £14,300, £549 15s; natterworks loan No. 2 of £8260, £317 10s lid. * HOSPITAL BOARD LEW. The city’s contribution to the Palmerston North Hospital Board this year covering capital and maintenance levies, amounted to £10.708 19s 4il and the rate struck for these services produced £10,209 Is 6d, absorbing portion of the credit balance which now stands at £499 17s 10c,. FIRE BOARD LEVY. The Eire .Board levy this year amounted to £4550. A rate ot 5-lGd in the £ on the value of buildings only m the fire district, was levied and produced £6106 19s 7d. The account has a substantial credit balance of £T /< t 15s 7d. FOXTQN HARBOUR RATE. Under the provisions of the 1* os ton Harbour Board Amendment Act, 1911, the council is required to share with other local authorities m the district, any deficiency in the accounts of tinboard, for which a levy is made upon constituent local authorities. A demand for the payment of the sum ol £339 havim-- been received Ironi tinboard, a rate of 1.20 d in the £ was struck by the council. Ibis produced £42S. There is. therefore, a small credit balance of £B9 9s 4d to earr.t forward against any future rate levy. PHENOMENAL GROWTH OE CITY. Some appreciation of the growth and advancement of the city during recent yonrs infiv be gained by u sFikln ut the following statistics: — Population.—l 937, 22,090 ; I*)3S, 93 200 • 1939 . 24,000; 1940, 24,000. Capital valuation. —1937, £7,205,0(10; 1938, £7,391,000; 1939, £7,644,.>40; 1940, £7,740,500 Unimproved valuation. — I.J-w, 400,000; 1938, £2,405,000; 193,), £2,413,000; 1940 £2.422,000. Dwellings.—l93i , 5503 ; 1935, ob-f , 1939, 5798; 1940, 6012. License fees. —193/. £4iJJ; UOB, £5307; 1939, £6488; 1940, £73/1. Building permits. —1937, 020 ; IJOB. 557; 1939, 766 ; 1940 769 Revenue Gas Department.—.lD- >1 - £35 902; 1938, £38,876; 1939, £40,024 ; 1940, £40,657. . . „ . , Revenue Electricity Department.—1937 *£60,914; 1938, £65,317; 1939, £69,883 ; 1940, *£72,728. Revenue Omnibus Department.— 1937 £6249; 1938, £0740; 1939, £719/ ; 1940. £7840. •Electrical charges were reduced on June 1, 1930, £BOOO per annum being returned to consumers. Further reclue, tions in commercial rates were made in July. 1938. .and reductions 111 domestic heating and cooking charges involving £4OOO per annum, were made on June 1, 1939. 1 i i ]n conclusion, Mr Hardie said, I do sire to express appreciation ol the cordial support received from the Mayor and members of the council and dopaitmental heads, and my thanks are also due to the staff for the efficient per formance of their respective duties during tlie year. . .. , Alter referring to the individual accounts, the Mayor (Mr A. E. Mansford) commented that. the report reflected a good deal of credit on Mr Hnrdie and bis officers in their boiiiJi able to prepare such a comprehensive statement in the short time since the closing of the financial year.

reading: — Passenger f Petrol & oil Oil 1937 ares £6249 fuel £1286 £61 1938 £6581 £1319 £82 1939 £7050 £1336 £110 1940 £7708 £1521 £112 £456 £398 £575 £990 'Tyres Servicing .. £265 £471 £355 £442 £368 £567 £460 £538