The City’s Finances

Manawatu Times, Volume 60, Issue 99, 30 April 1935, Page 8

The City’s Finances

Evidence of Wise Administration Debits Turned to Credits A buoyant financial position is revealed in the report on the finances of the city for the year ended March 31 last, presented to the City Council last evening by the town clerk, Mr J. E. Hardic. In the general account a debit of £5106 has been converted into a credit of £571, but probably the most pleasing feature of the whole report is the profit shown by the transit department after years of recurring debits.

General Account The revenue of the general account amounted to £58,821 7s Bd, while the expenditure was £53,143 6s lid, showing an improvement of £5678 Is 9d on the year’s working.

Reserves Account This department had a credit of £63 12s 7d on April 1, 1934-. The revenue from rents, pastul'agc, use of Sportsground and bowling and croquet greens amounted to £1867 13s 6d; gamp site fees, £144 7s; other receipts, £428 5s 9d, making a total, including a transfer of £1056 from the general account (which was necessary on account of the revenue received being insufficient to cover the total expenditure) of £3496 6s 3d. The expenditure totalled £355S 19s 7d, detail's being:—Sportsground, £409 4s Sd; upkeep Esplanade and Botanical Gardens, £896 6s Sd; North Street Park, £lll 9s Sd; Terrace End Park, £385 2s 2d; Takaro Park, £426 11s 8d; Milverton Park, £3S 17s 4d; salaries, £334 14s 7d; bowling greens, £336 2s sd; camp site, £137 17s 2d;- B'lcdisloe Park, £39 16s 7d. A small credit balance of 19s 3d was tho position on March 31, 1935. During the year areas for play were, prepared at Takaro Park and Hokowliitu Domain with labour provided under No. 5 scheme, and improvements were effected and planting undertaken at Bicdisloe Park, which is becoming a popular reserve. Library Account

Oa April 1, 1034, the account had a debit of £5106 6s Id, and deducting this sum from the difference between the total receipts and the total expenditure, converts the debit balance into a credit of £571 15s Sd, which must be considered very satisfactory as far as this particular account is concerned. Further, this account provided funds for tho repayment of £4OOO of loan debt during ‘the year. Tho principal items of receipts and expenditure are are follow: — Eoceipts.—Fees, licenses, etc., £4186; permits to build, £300; rents, £IS3S; lavatories, £343; office expenses, River Board, £200; sewer connections, £462; petrol tax, £3465; transfer from electrical account, £6000; from waterworks account, £4500; from otaer accounts, £6363; office expenses, other accounts, £3605; sundries, £1353; E.S.A. contribution Mayor’s relief, £1165, general rate, £24,176. Expenditure. —• Street _ maintenance, including wages, materials, watering streets, upkeep road rollers, motor-lor-ries, tractors, etc., £8236; insurance of employees, £380; street lighting, £3000; sewer maintenance, £624; stormwater drainage, £487; part traffic manager’s salary and upkeep car, etc., £646; salaries, £6249; printing and stationery, £378; cleaning, £291; legal expenses, £315; dog registration, £214; elections and polls, £102; Square gardens, £362; Fire Board levy, £2100; subsidies,£s3o; transfer to reserves account, £1056; special work, £4545; E.S.A., £1348 ss; Mayor’s relief, £4135 3s Od; sundries, £3957; loan repayment, £4OOO. A return presented by the towu clerk Tcvcaled that expenditure over the estimates amounted to £6llß and below the estimates to £2834, leaving a net loss of £3254. But against this was a net gain in receipts of £BS4i.

The year’s income is derived from subscriptions, rates, sale of books, etc., and amounted to £l7Ol 15s Bd. The expenditure amounted to £1706 6s 9d. Waterworks Accounts The credit balance carried forward at the beginning of the year was £2244 4s lOd. The revenue for the year amounted to £16,192 5s 4d, tho principal item being water rate, £1.3,577 11s Sd. The expenditure totalled £14,053 Ss 7d. The account closed with a substantial credit of £4383 Is 7d.

Transit Account This account' shows, in a marked degree, the wisdom of the council’s policy of providing modern means of transport with a definite appeal from the comfort and riding points of view. A comparison of the accounts for the fast three years makes very interesting reading:—

Mayor’s Fund Tho funds allocated have been again judiciously applied in assisting many ratepayers and residents in need of help, and the following figures disclose particulars of the year’s operations: Bates, £IOBS 19s Gd; gas and electricity, £2342 19s lid; cash, £479 17s 6d; E.S.A., £1348 ss; levy, £lßl Is sd; cycle allowance, £42 6s 4d; sundries, £2 183 lOd; total, £5453 Ss 6d. Electricity Account

The actual running position is, therefore, £790 better this year than‘last and over £IOOO improvement when compared with the year ended March 31, 1933. The profit and loss account also reflects the improved position and the figures for the transfer to net revenue account for the periods mentioned above are:—l933. dr. £BOB 17s; 1934. dr. £312 9s 4d; 1935. cr. £349 16s sd. Other Accounts. The undermentioned accounts are in credit as follow:

The revenue of the working account for the year just passed amounted to £57,001 4s 4d, as against £57,710 Os lid. The working expenses amounted to £27,824 13s lid, an increase of £SO7 ISs 3d over the previous year. Capital expenditure amounted to £2127 93 2d, the principal items being: Mains and services, £1351 3s 9d; meters, £097 15s lOd. The expenditure included the rate levy made by the ManawatuOroua Electric Power Board and legal expenses in connection with the council's action against the board, amounting to £958 10s 9d in all. Charges for electricity show a falling-off of £lOl7 ISs Id, due to an increased discount in respect of domestic light and heat and the introduction of a commercial lighting rate at a lower price than that payable formerly. The results of the year closely approximate the estimated credit, which was only £55 greater than that realised. The balance of net revenue account at the . close of the year was £14,617 12s sd, as against £16,919 3s 9d for 1933-34.

(excluding the sum of £5835 14s 7d on deposit vritli the Public Trustee). Rates. Total rates struck for the year 103435, £73,063 14s Id; amount outstanding 31/3/35, £10,430 8s 9d. The latter amount represents 14.15 per cent, of the total amount sruck. On April .1, 1934. the arrears covering previous years amounted to £16,135 5s 3d, of which £9417 6s 7d has been paid, leaving a balance of £67JS 18s Bd. The total of ail rates unpaid on March 31, 1935, was £17,147 7s sd. Discount on Ratos.

Gas Account The sum of £32,962,15s 6d represented the amount of the revenue of working account for the year just closed, compared with £33,480 4s 3d last year. The working expenses amounted to £24,503 11s Od, an increase of £3lO Us 4d, compared with the previous year. The principal items are: —Coal, £11,966 I Ss 8d; wages operating, £2913 8s 7(1; maintenance expenses, £llO2 17 lOd; salaries, £657 12s 8d; reserve for bad debts, £300; meter repairs, £lll7 4s 8d; main maintenance, £728 5s lOd. The capital expenditure incurred during tho year amounted to £1226 15s 4d. The fall in revenue is duo to a reduction of incomo from sales of gas of £544. Income from sales of coke is £72 lower, and that from tar is £l4l higher. Under expenditure, coal consumed shows a reduction of ,£475, whilst increases appear in wages operating plant £25-1, and plant maintenance £l5O. The estimates forecasted a deficit of £2657 14s lid and the actual delieit was £2603 17s, only £53 17s lid difference, which must be considered very satisfactory. The balance of the net revenuo account this year shows a debit of £1399 19s sd, as against a credit of £3-19 10s 8d at the close of the 1933-34 financial year. . Arrears. —Accounts owing by consumers at March 31, 1935, for gas and electricity supplied, amount to £6090 17s Sd, a very large sum when compared with the figures of previous years. Against this there is a reserve for bad debts amounting to £2SOO.

In accordance with tho suggestion contained in the town clerk's report last year, the council decided to reduce the percentage of discount allowed to 2} per cent, on rates paid within one month of .date of demand. The result was that on July 31, 1934, being the last day for the granting ot the discount, no less a sum than £30,874 10s was received which enabled tho council to leave sufficient in current account at the bank to meet ordinary expenses and to place a sum of £15,000 on fixed deposit for six months. At maturity of same a further £IO,OOO was added for a further like period. Bank interest for the year was only £l9 19s, whereas fixed deposit interest provided a sum of £l5O. District Fund Account.

The district fund account, which comprises all the accounts already mention-, ed, has a credit balance of £28.911 19s 3d against £5463 12s 6d at tho commencement of the year. Monjcys invested with the Public Trustee as at March 31, 1935, are:Accrued sinking funds, £63,189 4s lid; Depreciation electrical undertaking, £34,202 7s 3d; depreciation gas undertaking, £14,399 13s 6(1; depreciation omnibus undertaking, £795 15s 2d; lire and accident insurance fund. £7062 19s 3d; repayment principal, employees’ housing loan, £3OO 14s Id; total funds, £119,950 14s 2d. Tho interest derived last year and included in the above total is £3607 14s 3d.

Abattoir Account The revenue for tho year was as follows: —Slaughtering department, £5575 133 4d; boiling-down department, £5476 14s 9d; total, £11,052 8s Id. The working expenses, including purchases, were: Slaughtering department, £4290 15s 10d; boiling-down department, £5182 10s; total, £9473 Us lOd. At the close of ,the year, the net revenue account showed a loss of £745 16s lid, as compared with £lB4 8s lOd for the previous year.

Loan Accounts. The position of the loan accounts which have no connection with tho district fund account, aro in credit as stated hereunder: —Unemployment relief loan £3OOO, £25 18s sd; electric traction and destructor loan, £lOBl 18a lOd;

stormwater drainage loan, £6SO 0s lid; Hokowhitu sewer loan, £132 12s 4d; housing loan, £319 18s lOd: Fitzherbor! bridge loan, £1722 14s fid. Conversion of Public Debt. During the year considerable alteration has taken place with regard to the public debt of tho city which is now £854,542 10s 7d, compared with £941.932 4s 9d as at April 1, 1934. Of this amount £SOOO was repaid from revenue and the sum of £4-1,037 10s 7cl represented loans not subject to the operation of tho Local Authorities Interest Reduction and Loans Conversion Act. 1932-33. Tho balance was submitted to the Treasury with an application for the issue of a conversion order for: (11 Tho State Advances portion of tho loan; (2) that portion held by other than State Advances Office. Authority was duly given.

Tho whole of the conversion of the public debt was carried out without dissent from debenture-holders and the cost of the transactions to tho council was only £22S 16s 8d covering printing and advertising, no brokerage being paid owing to the work being carried out by this office direct with debentureholders. Tho conversion of loans has made a considerable reduction in interest and principal payments in connection with tho council’s indebtedness and consequently in the chargo against special rate account. Tho following shows the position in this connection: — 1931-32, £29,760 18s lid; 1932-33, £24.624 2s lid; 1933-34, £23,228 5s Id; 193536, £21,767 5s 7d. This shows progressive reductions amounting to £7993 13s 4d. Hospital Board Lory.

The city's contribution to tho Palmerston North Hospital Board this year, covering capital and maintenance levies, amounts to £6941 19s Sd, an increase of £IOB3 19s, which will necessitate a small increase in tho special rate. Loans Matured. A sum of £4OOO raised in the year 1924, being portion of the municipal building loan of £12,000, has matured and has been redeemed out of ordinary revenue, and the sum of £IOOO which matured on June 4, 3934, has been repaid from the revenue of the electricity department. Mayor’s Comment.

The Mayor said it was very gratifying to see the improved position of the general account. Tho gas and electricity accounts revealed very close budgeting by tho engineer (Mr. J. TV. Muir) and reflected to his credit. Tho transit account also showed marked irapro'.Jjmeut.’ Tho Mayor congratulated Mr. Ilardio on tlio clearness and conciseness of his report.

1933 1934 1935 £ £ £ Passenger fares .. . 4931 4815 5834 Petrol 1393 1292 Oil 110 56 Tyres 245 274 Repairs 478 274 Servicing .. .. .. . 572 532 Total running costs £5755 £5184 £4530 Passengers carried 421.753 413,818 449.977 Running results .. £ 41G £174 £818 (Loss) (Loss) (Profit)

£ s. d. Interest account .. .. 12 5 Deposit account .. .. 15 2 Opera House account .. .. 1417 13 0 Sanitary account .. .. .. 1202 15 7 Housing account .. ,. .. 1750 2 5 Insurance account .. .. fill! 0 11