Development of the City

Manawatu Times, Volume 64, Issue 97, 27 April 1939, Page 5

Development of the City

Review of Finances for Past Year Sound Position Revealed in Town Clerk's Annual Report * ‘ The figures submitted show in a striking manner the phenomenal growth of the city,” stated the Mayor (Mr. A. E. Mansford) in commenting at Monday night’s meeting of the Palmerston North City Council on the annual report presented by the town clerk (Mr. J. E. Hardie) for the year ended March 31, 1939. ‘‘lncreases,” he continued, ‘‘are shown under all heads, and this provides further evidence of the outstanding importance of our city. Its geographical location and the number of closely settled farms in the immediate vicinity combine to form a basis for development the end of which is difficult to see. It is, however, easy to forecast that, very shortly, Palmerston iTorth will gain the position of being the fifth city in the Dominion. The population will continue to increase, council activities will take on a wider scope and the responsibilities of councillors will increase accordingly.

“The city is at the commencement of industrial development. Many new factories have commenced operations in Palmerston North during the current year, as it is realised that the excellent roads converging on the city, and the fact that it is a rail centre of great dimensions, make it an ideal site from which to transport manufactured goods to rail centres and seaports throughout New Zealand.

‘‘The difficulties of providing labour for industrial purposes which besets the larger centres has not yet been felt to a very great degree in Palmerston North. There is, therefore, a certain field of female labour available for industrial development, and from the inquiries which have been made and negotiations which are at present proceeding, I am satisfied that before long this centre will take its place as a manufacturing area of importance to this Dominion.

“Wo are confident that the future of the city will be one of progress and development in many directions. General Improvement in Accounts.

‘ ‘ Consideration of the accounts for the current year shows a general improvement. The general account, in particular, shows an improvement of approximately £SOOO. The estimated position on this account assumed that the debit balance outstanding at April I, 1938, w ould be cleared by the end of the financial year. It is, therefore, pleasing to noto that the account has not merely paid off the debit with which it commenced the year, but has provided a substantial credit balanco with which to begin the ensuing financial year. “The estimated position of the reserves account was that the debit balance would be at least £2400. Portion of the debit balance this year has been made up by the expenditure of large sums in respect of improvements at the camp site, the new street off Te Awo Awe Street and the Hokowhitu Domain, which amounted in all to approximately £7OO, showing that the account has been kept within its limit and that the administration of this department has been carefully carried out. Library Developments.

“The library account had a debit balance at the end of the financial year of £1057 7s 4d, which compares with the estimated position of a credit balanco of £25 9s. The variation herein can be wholly accounted for by the additional amount provided for new books consequent upon the council's now policy of providing free literature in the non-fic-tion section and the establishment of the rental book club in one of the library shops. Repairs and alterations were also responsible for the expenditure of an amount in excess of the estimate for the year. The popularity of the rental book club, which is showing increased returns each week, shows that the council has been fortunate in securing the services of Mr. H. Greenwood, the librarian, whose knowdedge of the popular taste is very largely responsible for the .large and satisfied membership of this department. In order to cope with the increased and increasing business, a further shop adjoining the existing book club is being renovated and when this is completed and the juvenilo section is transferred dow r nstairs, a complete new lay-out will no doubt result in the added facilities at the library being availed of by a larger number of citizens of Palmerston North.

* 1 Tho estimated position in respect of the Opera Houso account was £SO below the actual credit balance. “The sanitary account showed that the credit balance would bo absorbed and the actual position is that a slight increase in the credit available has taken place during the year.

| “With regard to the waterworks ac- | count, the estimate was that the heavy | credit balance at the beginning of the | year, which was very largely pledged | for contracts at that time, would be ab- | sorbed, and the account would bo all | square on the 31st ultimo. The actual 5 position is that there is a credit balanco jj 0± £1149 5s Id, which must be consider- | ed very satisfactory when the extension | to the 21-inch supply main from Tiri- | tea, out of revenue, which was uuderjj taken this year is taken into account, jj “The debit - balance of the aerodrome | account, namely, £589 8s 2d, would have | been considerably reduced had the 380 | head of sheep (paid for during the year i and still unsold) been included in the | accounts. In addition, the trading in | livestock has considerably lessened the E cost of maintenance of the aerodrome, jj as mowing the grass is one of the 5 largest items of expenditure under this S heading. Trading Revenue Up. | “With regard to the trading accounts. “ the electricity, gas and omnibus departS ments show substantial increases in | revenue, although these advantages are | o. set to a certain degree by higher | costs. The abattoir department shows jj a reduction in the cash debit balance, jj but the trading position continues to | show a loss. A pleasing feature of the | gas and electricity departments is the = substantial reduction of £350 which has = been made in the amount of the out- | standing accounts for consumption of | gas and electricity. Heavy capital exE penditure was undertaken this year in ,jl both departments.

“The need for a better gas supply to consumers has been realised, and in order to provide this, new and larger mains are replacing existing gas mains in Main Street, liuahine Street and Feathcrstone Street. The cost of portion of this work is being borne by the council's depreciation fund. The capital expenditure of the electricity department also covers the replacement of mains which, because of the phenomenal growth of this department, has become necessary to meet the growing load on the system, Avhieh in eight years has practically doubled. In 1931 the connected load was 15,863 k.w., and to-day it is in excess of 29,000 k.w. The whole of the capital expenditure necessitated by this increase has been met from tho revenues of this department, notwithstanding reductions of over £BOOO. ‘‘The increasing popularity of the council's transport system shows the wisdom of the council's policy in keeping the licet of buses up-to-date. Only once (1929) has the number of passengers carried exceeded the number transported in the year just ended, and l feel certain that I sl>».ll be able to congratulate the department on a record year for 1940.

‘ ‘ The rates position is also a very satisfactory one. The total amount owing to the council was reduced from £11,687 to £8782 and the percentage of collections of the current year's rates was 94.79, as against 92.3 last year. The special rate account. Fire Board and Hospital Board accounts all show substantial credit balances with which to commence tho ensuing year.

11 The position of the fire and accident insurance fund established by the council continues to improve. There is now over £9OOO invested on deposit with the Public Trustee, together with the sum of £4ll held by the council in its account. No claims were received in the fire branch, and the premiums and interest allowed in the accident division i exceeded tho claims for compensation made as the result of accidents to employees. “The net public debt has been further reduced during the year by the repayment of debentures of approximately £19,000 in the No. 1 and 2 conversion loans. The council was fortunate in raising the whole of its Sewerage loan of £IO,OOO at per cent, interest and this has been financed on the basis of the council's policy in securing tho complete liquidation of all loan debt within the terms of the respective loans.'' Town Clerk’s Report. The town clerk's report read as follows: — General Account. The revenue of the general account amounted to £65,766, as against £OG,O4S for 1937-38, while tho expenditure was £60,809, compared with £64,702 in 19373S. On April I, 1935, the account had a debit of £2733 and subtracting this sum from tho difference between tho total receipts and the total expenditure, results in a credit balance of £2224, which must be considered satisfactory as far as this particular account is concerned, especially when it is remembered that the expenditure included £955 in connection with the purchase of two new motor vehicles, £4OO as a contribution to the construction of a new morgue, £524 as portion of the council's contribution to the Wellington Provincial Court at the New Zealand Centennial Exhibition. In addition, the amount transferred from the general account to the reserves account this year is £2OOO. Tho council also subscribed £SOO to the share capital of tho Centennial Exhibition Company. The principal items of receipts and expenditure are as follow: Receipts: Fees, licenses, etc., £6488; permits to build, £766; rents, £.1745; baths and lavatories, £742; sewer connections, £922; petrol tax, £5724; transfer from electrical account, £2500; transfer from waterworks account, £4000; transfer from district fund account, £3000; general rate, £21,094; arrears (general rate), £2532; office expenses, £4OOO.

Expenditure: Street maintenance, £10,501; insurance employees, £346; street lighting,.£3ooo; sewer maintenance, £1110; stormwater drainage expenses, £1444; traffic expenses, £1419; street marking, £536; salaries, £8816; printing and stationery, £615; cleaning, £326; legal expenses, £262; dog registration, £222; elections and polls, £417; Square gardens, £1628; subsidies, £971; transfer to reserves account, £2000; special work, £3417; Mayor's relief, £1068; sick pay, £516; private crossings. £514; stables, £460; Fitzroy Park, £7Ol. Mayor’s Fund. The funds allocated have been again judiciously applied in assisting many ratepayers and residents in need of help, and the following figures disclbse par ticulars of tho year's operations:—* Rates, £316; gas and electricity, £612; cash, £59; R.S.A., £319; levy, £36; cycle allowance, £7; sundries (material), £1; total, £1353. From this sum is to be deducted the transfers and refunds from tho Returned Soldiers’ Association, which amounted to £2SS, making the net expenditure this year £IO6B, compared with a relief expenditure of £2333 last year.

Electricity Account. The charges to consumers for the year just passed amounted to £66,701, as against £62,265. The working expenses amounted to £40,633, an increase ol £3148 over the previous year. ‘‘Energy purchased” increased by £2939. Capital expeuditure amounted to £10,618. Tho balanco of the net revenue account was £21,137, as against £19,010 for 1937-38, must be considered very satisfactory when the substantial reduction, in charges in 1936-37 is taken into account. Gas Account. The results of this department reflect the increased costs duo to increased wages and dearer coal. The sum of £40,524 represented the amount of the revenue of working account for the year just closed, compared with £38,875 last year. The increase is almost wholly due to the increased sales of gas (£1400) and coke (£510). The working expenses amounted to £31,092, an increase of £2301 compared with the previous year. The principal items are:—Coal, £16,257; wages operating, £4241; maintenance plant, £928; salaries, £1192; meter repairs, £856; main maintenance, £633. The capital expenditure incurred during the year amounted to £9712, and of this sum £SSOO has been recovered trom tho Depreciation f und Commissioner. The trading results show a profit of £1316 this year, as against £lOBl for the year ended March 31, 1938. The net revenue account for the year under review shows a credit balance of £3420. as compared with £3365 in 1938. The net revenue balance was slightly more than sufficient to meet the charges for sinking fund, but the debit for capital expenditure leaves the appropriation account for the year with a debit of £3301. The accounts owing by consumers at March 31, 1939, for gas and electricity supplied amount to £4875, as compared with £5227 at March 31, 1938. Against this there is a reserve for bad debts amounting to £3933. Abattoir Account. The revenue for tl\e year was as follows: —Slaughtering department, £5321; boiling down department, £3831; total, £9152. The working expenses, including purchases, were £BI9O 2s 3d. The capital expenditure was nil. The consolidated statement of profit and loss as at March 31, 1939, with that at the same date 1938 in parentheses is as follows:—Slaughterhouse, loss £216 (profit £100); fees, loss £3824 (profit £4014); boiling down, loss, £lßl (profit £SS3). Reserves Account. This department had a debit of £1733 on April 1, 1938. The revenue from rents, pasturage, use of Sportsground aud bowling and croquet greeus amounted to £1963, camp site fees £223, other receipts £39, making a total, including a transfer of £2OOO from the general account, of £4225. The expenditure totalled £4831, details being:—Sportsground, £897; upkeep Esplanade and Botanical Gardens, £1226; North Street Park, £147; Terrace End Park, £360; Takaro Park, £184; Milverton Park, £4O; salaries, £363; bowling green, £198; camp site, £395; new street off Te Awe Awe Street', £324; Hokowhitu Domaiu, £248. The debit balance at March 31, 1939, is £2339. Library Account. The year’s income is derived from subscriptions, rates, book rentals, sale of books, etc., and amounted to £2538. The expenditure amounted to £3595, and was as follows: —New books, £1500; magazines and newspapers, £103; salaries, £1147; cleaning, £224; printing and binding, £175; lighting and heating, £153; repairs and alterations, £lsl. A special rate of one-fifth of a penus in the £ was struck and a sum of £1829 was duly collected aud credited to the account. The debit balance at March 31, 1939, was £1057, which was very largely due to the alteration in the council's policy to provide for a free library service to the community in respect of the children’s department and non-fiction sections. In addition, the rental book club was established iu a portion of the library building aud this venture has proved an outstanding success. The total amount received up to March 31, 1939, ou account of rentals was £175. The estimates ou account of new books were exceeded owing to the necessity of stocking the rental department with a choice of new fiction popular with the public. Waterworks Account. The credit balance curried forward at tho beginning of tho year was £1403. The revenue for the year amounted to £19,062, the principal items being:— Water rate, £15,455; water by meter, £2857; supply to cousumers outside city, £412; sale of pipes, materials, etc., £6B; services, £l4l. The expeuditure totalled £22,317, as under:—Wages and salaries, £2314; materials, £562; mains and meters, £7274; electric power, £686; artesian bores, £158; transfer to general account, £4000; interest and sinking fund, £6369; office expenses, £4OO. The account dosed with a credit ol £1149. Transit Account. A comparison of the accounts for the last four years makes very interesting reading: —Passenger fares amounted to respectively: For 1936 £5824, 1937 £6249, 1938 and 1939 £6581 aud £7050; total running costs, 1936 £5297, 1937 £5896, 1938 £6123, 1938 £6823; passengers carried, 1936, 491,548, 1937 513,865, 1938 544,174, 193 S 587,771; running results (all profit), 1936, £642, 1937 £353, 1938 £617, 1938 £374.

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:— 1936, cr., £66; 1937, dr., £79; 1938, cr., £302; 1939, cr., £44. Aerodrome Account. The total revenue for the current year was £1859, the principal items being:—Landing Tffes, £354; rental, £123; sales of wethers, wool and hay, £961; refunds. £169. The expenditure amounted to £2447 and the principal items are as under:— Wages, £673; purchase of sheep, £973; maintenance, £394. The account closed with a debit of £589. Other Accounts. The position of the undermentioned accounts is as follows (all credit): — Deposit account, £3532; Opera House account, £1218; sanitary account, £124;

housing account, £l7l/ insurance account, £4ll (excluding the sum of £9388 ou deposit with the Public Trustee). Rates. The total rates struck for the year were £91,527, aud the amount outstanding at March 31 was £4770. The latter amount represents 5.21 per cent, of the total amount struck as against 7.7 per cent, last year and 8.45 per cent, for 1936-37. The total of all rates unpaid on March 31 was £8782, compared with £11,687 at the same date last year. Proceedings have been taken aud judgment secured against a large number of ratepayers. The council this year decided to again offer a discount of 2$ per cent, on rates paid within one mouth of date of demand, and this concession to ratepayers involved the sum of £1270. District Fund Account. Tho district fund uccouut, which comprises all the accounts mentioned, has a debit balance of £3028, as against a debit of £1691, at the commencement of the year. Moneys invested with Public Trustee as at March 31, 1939:—Accrued sinking funds, £69,745; depreciation, electrical undertaking, £47,033; depreciation, gas undertaking, £15,913; depreciation, omnibus undertaking, £1228; fire and accident insurance fund, £9388; repayment principal, employees' iiousing loan, £987; total funds, £144,356. Loan Accounts. The position of the loan accounts vhich have no connection with the district fund account, are in credit as slated hereunder:—Employment relief loan of £3OOO, £25; electric traction and destructor loan of £24,500, £7; airport loan of £20,000, £317; Hokowhitu sewer loan of £12,000, £132; housing loan of £IO,OOO, £319; waterworks loan No. 2 of £8260, £5; sewerage loan of £IO,OOO, £5777. Movements of Public Debt. As previously pointed out the amount of loan maturing ou Juuc 1, 1938, was £IB,OOO, and the indebtedness of the city was reduced by this sum on that date. Under the terms of the conversion order the further sum of £21,000 of loan debt matures on Juue 1, 1939. This does not confer any advantage of the special rate account, as the sinking fund payment for the current financial year will be increased by payment thereto of 41 per cent, ou the debentures, amounting to £65,980, which matured up to June J, 1938. A further sum of £9BB was also repaid in respect of conversion loan Mo. 2, which now stands at £32,836, having been reduced from £36,975 in 1934. The sewerage loan of £IO,OOO which was authorised by a poll of ratepayers in the previous year, was raised at 3$ per ceut. as under:—£2ooo from the State Fire aud Accident Insurance Office for a period of 20 years, £BOOO from tho •State Advances Corporation for a period of 10 years on a 20-year repayment table. In order to provide funds to meet the final debenture in the latter portion of the loan maturing on Juno 1, 1948, arrangements have been made to pay the Public Trustee uu unnual amount which, with interest, will provide the necessary Hospital aud Fire Board Levies. The city’s contribution to the Palmerston North Hospital Board this year covering capital aud maintenance levies, amounted to £11,021, an increase of £IBB2. A new separate account has been created for tiie Fire Board levy, which this year amounted to £5130. A rate of 5/16d iu tho £ ou the value of buildings only, in the life district, was levied aud produced £5344. This account therefore has a small credit balance of £214. Phenomenal Growth of City. The growth and advancement of the city during recent years may be gained by a study of the following statistics:— Population, 1936 22,190, 1937 22,595, 1938 23,200, 1939 24,000; capital valuation, 1936 £7,035,000, 1937 £7,205,000, 1938 £7,391,000, 1939 £7,554,000; unimproved valuation, j 936 £2,393,000, 1933 £2,400,000, 1938 £2,405,000, 19.39, £2,413,000; dwellings, 1936 5434, 1937 5503, 1938 5620, 1939 5798; license tees, 1936 £4334, 1937 £4733, 1938 £5307, 1939 £6488; building permits, 1936 537, 1937 525, 1938 557, 1939 766; revenue gas dc partment, 1936 £35,237, 1937 £35,902, 1938 £38,576, 1939 £40,024; revenue electricity department, 1936 £60,748, 1937 *£60,914, 1938 £65,317, 1939 £69,883; revenue omnibus department, 1936 £5939, 1937 £6249, 1938 £6740, 1939 £7197. "Charges reduced Juuc 3, J 930; £BOOO per annum returned to consumers. Further reductions in commercial rulers were made iu July, 1935. In conclusion, the towu clerk expressed appreciation of the cordial support received from the Mayor aud members of the council and departmental heads, and thanked the staff for the efficient performance of their respective duties during the year. The Mayor said the towm clerk was to bo commended for the report brought down, and he congratulated Mr. ilaidio aud tho other officers for the way in which they had looked after the inter* ests of the council aud the ratepayers. •Speaking i* regard to the reserves ac* count, Cr. G. Tremaine (chairman of the reserves committee) said’a wrong construction might be placed on the figures. The year had started with a debit of £1733, which represented expeuditure authorised by the council mainly m connection with the laying out of Fitzroy Park and the cost of construction of a house for the JSportsground caretaker. With a view to keeping down the rates, the council decided to carry the £3 733 forward. Together 'with the further amount of £659, representing the estimated excess of expenditure over receipts for which provision could not be made at the time, this brought about a debit of £2392. Since the estimates were framed, 'further work for which no financial provision had been made had been authorised by the council and charged to the reserves account, Ltailing £llls. There had been a saving on authorised expenditure of £ll6B, leaving a debit of £5339 at the end of the vear.