CITY'S FINANCES

Manawatu Standard, Volume LXI, Issue 126, 29 April 1941, Page 6

CITY'S FINANCES

DEBIT BALANCE FOR YEAR. REVIEW BY TOWN CLERK. Presenting his report on the city's finances tor the year ended March, oi, liMi, to a meeting of tho City Council, lust evening, tnu town cicne (Mr J. it. Huruie; snowed that the year cfoseu witn a debit balance oi £l3,<i>3 3s lid (tins being a consolidation at tnc individual accounts) as against a credit ol XiiJoO Us «d at the commencement ot tnc year, 'i'lio general account closed the year with a debit ot £2ioß Is 80, alter commencing with a debit of ia3si> 0s -Id. llns was considered satisfactory in so tar as this account was concerned m view of special expenditure. When the report was adopted, the Mayor (Mr A. E. Mansion!) %iomniented that tvlo accounts were in a fairly sound position, on wliich the council could congratulate itself.

The town clerk reported, inter alia: The revenue of the genera! account for the year amounted to £75,321 12s lOd, as against £68,063 16s 2d lor 1939-40, while the expenditure totalled £76.693 14s 2d, compared with ±l/1,696 2d sd. The account commenced the year with a debit of £1386 0s 4d and, adding this sum to tho difference between tno total receipts and the total expenditure results in a debit balance of £2758 Is Bd, which mutt bo considered satisfactory as lar as this particular account is concerned, especially in view of the fact that the expenditure included the sum of £4500 in connection with the purchase of two new bases; provision for the reconstruction of tho Botanical Road bridge, £lOl9 4s sd; instalment on purchase ot land adjoining the now railway station, Boundary Koad, £IO3O ss, provision for Centennial Memorial £6OO, and construction oi the Lakeside Drive (Hokowhitu), £SOO. 'lho amount transferred from general account to reserves account this year was £2900, compared with £4OOO lor the previous year. Tho principal items of receipts and expenditure ur-.' as follow : —Receipts: Fees,, licenses, etc., £6186; permits to build, £825; rents, ±12436; baths and lavatories, £850; sewer connections, £872; petrol tax, £4647; transier from electrical account, £2500; transier from waterworks account. £8500; transier from district lurid account, £3000; general rate, £23,016; arrears, general rate, £1547, office expenses, £4900. Expenditure: Street maintenance (including wages, materials, watering streets, upkeep road rollers, motor lorries, tractors, etc.), £16,981; street lighting, £3000; sewer maintenance, £1142; stormwater drainage expenses, £712; trailio expenses, £1682; stiect marking. £036; salaries, £960/; printing and stationery, £1029 ; ' cleaning, £354 ; legal expenses, £130; dog registration, £236; Square gardens. £1204; subsidies, £1028; transier to reserves account £2900; special ■ work, £4379; Mayor? relief, £7262; new bridge, Botanical lioad. £1019; private crossings, £567; new buses 12), £4500; renovations, council property. £1437; instalment purchase, railway reserve, £1030; Lakeside Drive, £SOO. Mayor's Fund.—The funds allocated have again been judiciously applied in assisting manv ratepayers and residents in need of help. From a total of £917 9s 5d have to be deducted the transfers and refunds from the Returned Soldiers' Association, which amounted to £156 9s, making the nett expenditure this year £762 compared with a relief expenditure of £9oB last year. Electricity Account.—Tho charges to consumers amounted to £76,851 as against £69,723 for the previous year. The working expenses totalled £59,228, an increase 0t°£12,647 which is largely accounted for by tho increased call upon the Diesel generating plant by the Public Works JJcpartment. This item showed an income of £6836 lis 4d in addition to tho charges to consumers already mentioned. Energy purchased increased by £5327. Capital expenditure amounted to £8519 8s 3d. Tho balance of the nett revenue account was £19,394 9s srl against £18,395 5s 2d lor 1939-40. 'I he fact that the balance of the year's working is being maintained in spite of heavy reductions in charges to consumers proves that tho electrical engi neer's recommendations in this connection aro on a sound basis. Sales of appliances were again on a high scale, amounting to £6755 against £6941 last year. The great. ! increase in the use of electricity lor domestice purposes is indicated by tho growth of the amount advanced under hire purchase. In 1937 the debtors amounted to £450 3s and at the close of tho financial year just ended hire purchase debtors were £7033 7s sd, an increase in excels of £6500 which the council has had to lind in cash irom its revenue Gas Account.—Tho results achieved in this department 6how that salos of gas have made only a slight fall and a slight increase in working expenses. Sales ot by products make the results practically the same as last year. The sum of £40,769 represented the revenue of the working account for the year, compared with £40,657 lor 1939-40. 'J he sales of gas showed a decrease of £170; lar sold fell by £446, and sales of coke were up by £651. The working expenses amounted to £32,096. an increase of £263 compared with the previous year. 'lho trading profit amounted to £9/9, compared with £1655. The capital expenditure incurred amounted to £2969. The neit revenue account show 6 a credit balance of £3229 as compared with £3284. The nett revenue balance was slightly more than sufficient to meet the charges for sinking fund, but the debit for capital expenditure leaves the appropriation account tor the year with a depit of £2924, practically the amount of the capital expenditure, 'lite accounts owing by consumers at March 31, 1941, for gas and electricity amount to £3451 as compared with £3735 at March 31, 1940 Against this there is a reserve for bad debts amounting to £3685. Abattoir account. —'1 lie revenue was £11,855 and tho working expenses, including purchases-, were £'10,243. The capital expenditure was nil. This account commenced tho year with a debit of £474. The revenue from rents, pasturage, use of Sportsground and bowling and croquet greens amounted to £1412; camp site fees £202, other receipts £167. making a total, including the transfer of £2900 from general account, of £4683. The expenditure totalled £4196 5s lOd. The credit balance at March 31, 1941, was £l7 16s 2d.

Library account. —The year's income is derived from rates, books, rentals, tubscripl ion.-., sale of books, etc., and amounted to £4853. The expenditure amounted to £4819. A special rate of 13-40tht> of a penny in (.lie £ was struck and a sum of £2940 was collected and credited to the account, which ends the year with a debit of £76 3s, compared with £llO 4s 9d at the beginning of the year. The amount, received in respect of the rental book department, £I2S7 14s, an increase of £271 compared with 1940, must be very satisfying to the library committee. . Waterworks account.—The oredit balance carried forward at the beginning of the yea;- was £3517 and the revenue for the year amounted to £20,105 14s lid. The expenditure totalled £21,766 4s 7d, and the. account closed with a credit balance of £1857 5s 7d. I ranait account.—This department has bad a record year. A comparison of the accounts for the last four years, 1938-1939, 1910 and 1941 being mentioned in that order) shows continued progress: —Passenger fares £6581, £7050, £7708, £9643; total running co.ts, £6123, £6823. £7592, £3926; passengers carried, 544,174, 587,771, 642.536, 789,618; running results, £617 (profit), £374 (profit), £243 (profit), £B6l (profit). The profit and loss account also reflects the position and the figures for the transfer to nett revenue account for the periods mentioned above are: 1938 cr. £302; 1939, cr. £44; 1940 dr. £164; 1941, cr. £347. .Aerodrome account. —The total revenue for'"the current year was £1998 17s lOd and the expenditure £1735 13s. The account closed with a debit of £398 14s 3d. Cemetery account. —The sum of £lßl6 lis 4d was expended in connection with the two cemeteries controlled by the I council. j Unera llouso account. —This account had I a. credit of £IOO 2s 8d af March 31 last.

and thus must be considered creditable when it is remembered that further improvements have been carried out both in the Opera House and tho Coronation Hall. Other accounts.—The position of the undermentioned accounts is as follow; Deposit account (credit),'£322l 15s 6d ; sanitary account (credit), £sl 17s sd; housing account (debit), £523 17s 4d. POSITION OF RATES. Total rates struck lor year, 1940-41, £93,618 Is lid; amount outstanding at Marcfl 31, ly41 ; £3091 9s 7d. lhc amount collected represents Uo.6y per cent, ol the total amount struck, as against 90.83 per cent, in tile previous year, and U4./9 per cent, lor 19od-39. The total of ail iai.es uupnid on Murcn 31, 1941, was £4561 U» Bd, compared with i/62i3 12s lOd in the previous- year. Discount on rates: ihc council decided to ogam oher a discount ol 2j per cent, on talcs paid w.tlnn one mouth of date of demand, and tins concession to ratepayers involved the sum ol £1494 2s Bd. District Fund Account.—The district fund account, which comprises all the accounts already mentioned, had a debit balance ot ±;l3, (33 3s lid as against a credit of £1950 6s 3d at tho commencement of tno year. Uwing to increasing prices, the council a stocks have been materially increased and this, with the auumonal amount invested in appliances on hirepurchase, hao uHeetcu the cash position. rJui.-ng the ensuing year caro will need to be exercised, by trading departments particularly, in the ordering ot shocks. Replacement ol motor vehicles. —1 suggested to the council that some provision be made in the estimates lor tiie year just ended lor the replacement of vehicles in order that the cost of doing so might bo spread evenly over tno ensuing years. Tho sum of £'ios, covering vehicles in the general, waterworks, sanitary and tratlie departments, was appropriated and invested in the Post Oliice Savings Bank Account. The balance of this account at .March 31, 1941, was £772 lis lOd. Moneys invested with i'ublie '1 rut tec as at March 31, 1941, totalled £152,2<i6 17s lOd. Loan accounts. —There is only ono livt loan account which has no connection with the district fund account, and this is the sewcrago loan account of £IO,OOO, which is £3lo 17s 4d in credit. Movements of public debt.—The amount of loan maturing on June 1, 1940, was £22,000, and the indebtedness of tho city was reduced by this sum on that date. Under ttic terms of the conversion order, the further sum of £23,700 of loan debt matures on June 1, 1941. This does not confer any advantage on the special rate account as the sinking fund payment lor tho current financial year will bo increased by payment thereto of 4i per cent, on the debentures, amounting to £98,980, which matured up to June 1. 1940. A lurther sum of £IO6B was also repaid in respect of conversion loan No. 2, which now stands at £30,738, having been reduced irom £36,975 in 1934. In addition, the following portions of loans raised on the instalment repayment system were repaid during the year:— Airport loan of £20,000, £782 6s 9d; sewerage loan ot £IO,OOO, £370 Is 8d ; waterworks loan No. 1 of £14,300, £569 3s 3d ; waterworks loan No 2, of £8260, £328 15s 2d. Hospital Board levy—The city s con tribution to the Palmerston North Hospital Board for the year covering capital and maintenance levies, amounted to £lO,680 4s sd, and the rate struck for these services produced £10,762 8s 9d, resulting in an increased credit balance, which now stands at £672 lis 7d. Fire Board lew.—The Firo Board levy this year amounted to £4450. A rate of |d in the £ on the value of buildings only in the fire district was levied and produced the sum of £3426 16s Id. Foxton Harbour Board rate—Lndcr the provisions of the Foxton Harbour Board Amendment Act, 1917, the council is re quired to share with other local ailthOrl ties in the district any deficiency in tho accounts of the board, for which a levy was made upon constituent local authorities during the previous financial yeai% A demand for payment of the sum oi £559 having been received from tno board, a rate of l-20d in the £ was struck by the council. This produced £444. I here is therefore, an increased credit balance of £l4B 12s'9d to carry forward against any future rate levy. Baths.-Thc progress made by the Municipal Baths during the past three years indicates their growing popularity, which is shown by the following table: Revenue, 1939, £92 15s 7d; 1940, £IOO 16s lOd; 1941, £l3) lis lOd. Railway Reserve—During the year tho council entered into an agreement to purchase from tho Railways Depaitmcnt in the vicinity of the proposed new railway station an aren ot approximately l/ 2 acres acquired by it under the provisions of tho Public Works Act and to pay for the land by annual instalments of £IOOO. The total purchase price, including costs, was £3475 and the balance carries interest at the rate of 4 2 per cent, per annum. Centennial Memorial.— Owing to increased costs and the difficulties of pro curing suitable material, the nroposa to erect a winter garden ami begonia house at the Esplanade has had to be severely curtailed. It is now proposed to erect the circumstances permit. The first instalment, complete memorial in tedious as and when the erection of two propagation houses and boiler room, has already been provided for from the general account by the investment on fixed deposit of ths sum of £6OO plus the Government subsidy thereon, £2OO. Tenders for the supply of the necessary material wlil shortly be called. Phenomenal growth of city.—Some appreciation of the growth and advancement of the city during recent years may be gained by a study of the following statistics for 1939. 1940 and 1941 respec-tively:-Population, 24,000 24,500, 25,000; capital valuation, £7,644,540, £7.956,918. £8,250.000; unimproved, £2,416 000, £2.•425,089, £2,434,000; dwellings, 5798. 6012, 6158; license fees, £64£3. £7371, £6186; building permits, 766, 769. £25; revenue gas department, £40.524, £40,657. £40,769_, revenue electricity department, £69.883, * £72 723, £76,851"; revenue omnibus department, £7197, J5T840, £9643. "Charges reduced June 1, 1939, £4OOO per annum returned to consumers. The Mayor commented that most of the accounts were in a fairly sound position, one on which the council might congratulate itself. He extended congratulations to Mr Hardie on the very full information given and on the satisfactory position of the various accounts and moved th'e adoption of the report. In seconding the motion, which was carried, Ur J- Ilodgcns, M.P., commented that it w-as pleasing to know, that although councils might come and go, the city was -orved with officers as to whom theic was never a question of probity or the soundness of their advice.