Financial Operations of the City

Manawatu Times, Volume LV, Issue 6837, 19 April 1932, Page 7

Financial Operations of the City

Town Clerk Presents Annual Summary A statement summarising- the financial operations of the City Council for the year ended March 31, 1932, was placed before last nig-ht’s meeting- of the Council by the Town Clerk (Mr. J. It. Hardie). It recorded the sound financial position of the City generally. Details of the various accounts were given as follows:

General Account The account commenced the year with a credit of £4GS2 4/9, the ordinary revenue for the period amounted to £OO,GOG G/4, while the expenditure totalled £64,965 6/6, leaving a cash credit of £523 14/7 at the close of the year. The principal items under, the heading of revenue arc as follow: Fees, licenses, etc., £3633 7/6; permits to build, £337 10/6; rents, £1961 6/9; Government subsidy, £371 5/; petrol tax, £3082 4/9; general rates, £25,72S 12/7; transfer from electricity account, £2000; refund from sanitary account (part cost septic tank alterations), £900; sower connections, £659 2/7. Particulars of expenditure incurred are as under: Street maintenance, labour and materials, £7747 19/3; -watering and sweeping streets, £959 19/4; upkeep road rollers, motor lorries, tractors, wages and repairs, £4266 14/2; tarring and sanding footways, £7510 6/8; kerbing and channelling, £2641 J5/7; electricity street lamps, £3000; Square gardens, £I4OS 2/3; Fire Board levy, £2233 10/; subsidies, £452 1/; reserves account, £1750; earthquake relief, £250: Special' works provided for on the estimates -were: Re-surfacing College street, £556 14/4; re-surfacing Cuba street extension, £3ll 18/3; re-surfacing Feat.herstone street west, £671 9/1; resurfacing Cook street, £386 9/4; re-sur-facing Ferguson street west, £1075 3/3; storm water drainage, College street, £503 17/9; conduit, Rangitikci street, £692 15/6; Collingwood street drain, £929 11/3.

When framing tho estimates for the past year tho credit balance existing on April 1, 1931, had been taken into account .and was absorbed to avoid increasing the general rate. With regard to the large sum expended on special works as detailed above, should the council decide not to undertake any special works during the forthcoming year it will therefore he possible to make a considerable reduction in the general rate now payable. Relief of Unemployment AVhcn considering tho estimates in May last the council recognised that it would he called upon to provide work during the winter of 1931 to alleviate unemployment within the city, and a sum of approximately £IOOO was allocated for that purpose. In addition to this amount, formalities were completed for the raising of a loan of £3OOO under the provisions of the Relief of Unemployment Act, of which a sum of £2600 was raised locally at 5 per cent and applied towards the above object. Before the winter had advanced very far it became apparent that many men with families were out of employment, and the council decided that further financial assistance be provided in addition to wages payable under the No. 5 feheme. This extra allocation was devotcl to providing extra days for the men employed under tho scheme referred to, and since November last only those men who wero ratepayers or consumers of electricity -were given the extra days, conditional on applying the amount earned towards the reduction of their rate or electricity accounts. Under this proposal no less a sum than £584 0/4 was collected on account of rates, and £125 towards gas and electricity accounts. To show the amount expended in assisting unemployment the following details are appended: Footway construction, etc., hv returned soldiers, £1613 11/3; contribution by R.S.A., £677 17/6; extra days granted married men, £4360 14/11; hire of lorries, teams, and carting metal, £3136 16/; total, £5433 4/S.

To liquidate the above expenditure funds were provided as follow: Special relief loan, £2600; general account, £1283 4/S; transfer from electricity account, £4550; total, £5433 4/S.

Gas Account The revenue of the gas undertaking for the year amounted to £43,480 12/6, as against £J2,S9O 2/10 for the previous year. The sale of gas realised £30,064 1/5, against £31,105 14/6 for 1930-31, a reduction of £958 6/11. The revenue is derived mainly from gas used for domestic cooking. Other important items of revenue arc as follow: Sale of coke, £3415 14/3; sale of tar and oil, £2125 19/S; sale of fittings, £2132 8/2; hire purchase receipts, £2344 11/7. The decrease in revenue from the sale of gas is no doubt accounted for owing to many of the consumers exercising considerable care in the use of this commodity.

The expenditure amounted to £44,752 16/10, as compared with £47,335 0/11 for 1930-31, a decrease of £2582 4/1. The main items under the heading of expenditure are: Purchase of coal, £SSI4 4/4; coaling and stoking retorts, £2328 12/2; maintenance and distribution, £2054 7/8; now meters, £BO7 5/11; fittings, £ISSO 11/S; extension of mains, £719 6/; cookers, £1744; interest and sinking fund, £10,678 17/; depreciation, £2995 13/6. The annual payment of £10,678 18/ required each year to meet interest and sinking fund on the loan indebtedness is a heavy departmental burden and represents more than onethird of the amount received from the sale of ghs. It, was found necessary to transfer , from the electricity account the sum of £3OOO provided for on last year's estimates to enable this account to meet its obligations, and at the close of (he year a credit balance of £723 19/9 is being carried forward. To date there are 3464 cookers in use, 209 being installed during the year. Consumers number 5336.

Electricity Account Financially the electricity department has experienced a most successful year. The account carried' forward a cash credit of £9732 16/8 on April 1, 1931. The revenue for the year amount-

cd to £63,42S 5/1, the main items being: Sale of current, £5G,149 15/4 (a decrease of £2756 14/10 compared with the previous year); street lighting, £3000; sale of materials and fittings, £3161 2/1; hire purchase receipts, £254 11/. The expenditure reached £69,694 14/3, details being as follow: purchase of bulk supply, £16,521 2/5; coal, etc., £B2l 15/S; wages, power house stail’ and other employees, £4.816 6/2; purchase of stoves, radiators, etc., £2389 12/4; new meters, £1390 9/6; services and extension of mains, etc., £5339 6/10; new substation, £2191 11/9; power house repairs and maintenance, £279 3/6; cables and switchgear, £1475 8/10; interest and sinking fund, £12,073; depreciation, £4963 19/9. The account not only has provided the full year’s interest and sinking fund of £12,073 on the undertaking, and office expenses of £1330, but has assisted the general rates to the extent of a cash payment of £2OOO, has assisted the gas department with a payment of £3OOO to help that department to meet last year’s obligations, and has also provided the substantial sum of £4550 towards the relief of local unemployment. The year closed with a cash credit of £3466 7/6. Funds set aside for 'depreciation are invested with the Public Trustee, and the value of these funds now stands at £15,206 11/6. The position of this account as shown herein again proves decisively that the electrical undertaking is one of the best assets tho ratepayers possess. There arc now 5647 consumers.

Abattoir Account The tallow market has shown very little improvement during the year, thereby considerably affecting the revenue of the abattoir department, the realisations locally and on the Home market falling below the estimate. An early improvement in the market values is eagerly awaited. A debit of £5359 3/6 was carried forward at the commencement of the year. The tallow sales amounted to £4186 12/3, as compared with £4OBS 9/ for the previous year. Other items relating to revenue are as ’follow: Slaughtering fees, £3428 8/6; sale of runners, £904 7/3; rents, £166 4/8; sale of manure, £984 2/10; chilling fees, £167 5/2. The fees received for the use of the chiller are as stated above, as compared with £B4O 13/1 received for 1930-31. Unfortunately the building is now out of commission, and the question of carrying out extensive repairs or replacing it will require tho early consideration of the committee. The expenditure amounted to £9752 2/8, made up of: Wages and salaries, £4BIO 12/5; fuel, £621 3/8; inspection foes, £251 19/7; purchase of fat and bones, £449 IS/; purchase of condemned stock, etc., £l2B 3/1; purchase of tallow casks and sacks, £326 6/; interest and sinking fund, £2llO. The present debit balance amounts to £5024 19/4, being a. decrease of £334 4/2 as compared with the previous year.

Reserves Account The account commenced the year with a credit of £93 5/. The revenue amounted to £2165 13/1, derived mainly from rents, pasturage, use of Sportsground, and the bowling and eroquot greens. The expenditure was £3757 6/1, as follows: Upkeep of Sportsground, £539 15/2; renewal of Sportsground fence (materials), £134 IS/3; upkeep of Esplanade and botanical gardens, £1322 G/7; upkeep of Terrace End Park, £363 19/5; upkeep of Milverton Park, £123 19/6; upkeep of Takaro Park, £291 19/5; purchase of motor mower (Sportsground), £358 0/9. A transfer of £1750 from the general account was made at the close of the year to enable the department, to meet the year’s expenditure. The account closed with a credit, of £221 12/. Transit Account The result of the year’s operations shows that the account has not improved its position financially, owing, no doubt, to the economic depression through which the country is now passing, and to the largo number of citizens using other means of transport. The gross income amounted to £7822 5/11, detailed as follows: Fares, £5223 2/6: advertising on buses, £209 15/; refund on repairs to motor vehicles and sale of oil. petrol, etc., £2202 15/2. The fares received for 1930-31 amounted to £6I6S 11/7, a decrease of £945, equivalent to over £lB per week, for 1931-32. The expenditure was £8565, thus exceeding the revenue by £742 14/1, the main items being: Running expenses, including repairs to buses, £4182 2/4; traffic expenses, drivers’ wages and cleaning buses, £3360 11/; salaries, £143 11/8; third party risk and other insurance, £213 17/6; heavy traffic fees, £274 2/0; depreciation, £4OB 9/2. Although the account had a cash credit balance of £297 10/ at the commencement of the year, a debit balance of £445 3/3 is now shown, brought about principally by the falling off of the amount received in fares.

Library Account At the commencement of the year the account had a credit balance of £4l 16/1. The receipts from subscriptions, rates, sale of books, etc., amounted to £1716 7/10. The expenditure was £1735 2/11. The special rate struck to provide part of the cost of upkeep produced £IOBO. A sum of £23 represents the credit balance. The rents derived from the shops in the library buildings are applied towards the interest and sinking fund on the library loan, and arc not credited to the library account.

Interest Account The interest and sinking fund payable in respect of the loan indebtedness of the city was as follows: From special rates collected, £29,221 14/; from revenue, £35,224 1/2; total, £64,445 15/2. With regard to the. pqymeßt of iater^t

in Sydney in respect of loans domiciled in Australia, the council saved the sum of £2084 4/ as a result of its decision! to remit the interest moneys to Australia and not to make payment in New! Zealand. The account carries forward a credit balance of £246 7/10. Waterworks account The credit balance available on April 1, 1931, was £2683 18/7. The incomo in respect of this account is derived principally from rates, water by meter and supply to consumers beyond the boundaries of the city, and amounted to £15,341 16/7. The expenditure totalled £15,077 2/10. Owing to the hoavy expenditure incurred in connection with the extension of mains the account now shows a small debit of £46 14/6, which will be liquidated during the ensuing year. Other Accounts The following accounts arc in credit as stated hereunder: Opera House ac-. count;, £1192 2/; sanitary account, £134 10/2; housing account, £244 S/3; insurance account, £ll3 11/1, excluding the sum of £-1019 on deposit with the Pub* lie Trustee. The deposit account showa a debit of £7Ol 18/9. Rates

Total amount struck for 1931-32, £82,309 0/4. Amount outstanding at March 1932, £5971 18/1. The latter sum is the largest amount remaining unpaid in the history of the city, but considering the present depression and the effect it has had oa. businesses and private individuals, the amount in proportion must compare favourably with any other city similar in size. The sum outstanding represents 7.2 per cent, of the total collectable, and every endeavour will be made to collect the amount now shown as outstanding. Sinking Funds The accrued sinking funds invested with the Public Trustee and now bearing interest at the reduced rate of 4$ per cent, now amount to £124,02S 13/11, and will be applied towards the repayment of loans falling due from time tol time.

The public debt of the city as March 31, 1932, was £965,690 10/7. The Mayor congratulated the towa clerk on the. position of the various accounts. The amount of rates collected was gratifying, considering the times through which the country was passing. Careful consideration would have to be given to the estimates for the coming year, and all new works curtailed, if not cut out altogether. Ail the possible relief must be given the ratepayers. Sacrifices woud have to be made equally, and no particular section! must be burdened unfairly