BOROUGH FINANCE.

Manawatu Times, Volume XLII, Issue 1742, 18 February 1921, Page 5

BOROUGH FINANCE.

STATEMENT BY MAYOR. £270,000 OF LOAN MONEY STILL TO BE PROCURED. At the last meeting of the Borough Council the Mayor made a statement to councillors on the financial position. In dealing with the district fund account he pointed out that the present overdraft on the district fund account was £Bll3, but this account had been credited with loan monies in hand, so as to save bank interest, the amount being £20,000. Shortly, this amount would be required for payments on account of electric lighting, and, in any case, it would have to be transferred to loan account in accordance with .the Act at- the end of the financial year, viz., March 31. This would then leave the district fund account in debit £28,1.13, and there is still about seven weeks to run, so with the current payments the amount would be £30,000 or more. Therefore the Council would have to be very careful with its expenditure up to March 31. He further stated that the district fund account had had to make advances for loan works for 'which monies had not yet Deen raised, viz.: footways, esplanade road, water tables, land, etc., to the amount of £3550, and an advance had also been made on account of gasworks loan (not yet raised) £19,000. He wanted councillors to clearly understand that the district fund account itself was in a splendid position, but that the Council had had to do ttfie same as many other boroughs had done, make advances on. account of loans to be raised for urgent works. There was an amount of abcujt £7OOO left in the sewer and water loan, and approximately £16,000 in the storm water loan This money was in hand, and it would be necessary meantime to conserve this to assist with the electric lighting expenditure until the full amount had been raised. In regard to the electric lighting loan the amount was £120,000, of which only £40,000 had so far been raised, and the electrical engineer had stated that it would be necessary to provide a further £65,000 within the next six months. He did not know where the money was coming from, biit he had arranged to interview the Minister for Finance to see what could be done for the Council. He also referred to the moior'-bus loan of £SOOO. This money had not been raised and the 'buses were ordered, but as the district fund would have to find the money meantime, and it could not be done until after March 31. there would be no 'buses until towards the end. of April. The chassis had been shipped and the bodies had to be built in New Zealand.

Speaking on the general question of loans sanctioned by tne ratepayers, the Mayor said the amount authorised recently was £366,000, and so far £P5,000 had been raised, leaving the Council with about /570.000 to arrange. Pie hoped members of the Council would appreciate the position. They had been fortunate in obtaining £P5,000. Many others had not met with the same success. The next two years would be most difficult from a financial point of view, and the greatest care would have to be exercised.

Cr Crabb suggested that some of the loans should be altered from the 3 6-year period to say 7 Or 10 years. The Mayor replied that this was one of the matters ho was bringing under the notice of the Minister for Finance.

The Mayor also stated that as far as the district fund account was concerned ho had arranged for a limit of £30,000 with the bank.