City’s Financial Position

Manawatu Times, Volume 66, Issue 100, 29 April 1941, Page 10

City’s Financial Position

Operations of Past Year REVIEW BY TOWN CLERK Figures concerning the financial position of the city were contained in the report of tho town clerk (Mr. J. R. , Hardie) for the year ended on March 101, which was tabled at last night’s j meeting of tho Palmerston North City Council. Extracts from the report were:~ General Account. —The revenue of the general account for the year amounted to £75,321 12s lOd, as against £08,063 16s 2d for 1039-40, while tho expenditure totalled £76,693 14s 2d, compared with £71,696 2s od in 1939-40. The account commenced tho year with a debit of £1386 0s 4d, and adding this sum to the difference between the total receipts and the total expenditure, results iu a debit balance of £2758 Is Sd, wrich must be considered satisfactory as far as this particular account is concerned, especially in view of the fact that the expenditure included the sum of £4500 in connection with tho purchase of two new buses; provision for the reconstruction of the Botanical Road bridge £lOl 94s sd, instalment on purchase of land adjoining the new railway station (Boundary Road) £IO3O ss, provision for centennial memorial £6OO and construction of Lakeside Drive (Hokowhitu) £SOO. The amount transferred from the general account to reserves account this year was £2900, compared with £4OOO for the previous year. Mayor’s Fund.—The funds allocated have again been judiciously applied in assisting many ratepayers and residents in need of help, the total amount paid out being £917 9s od. From this sum is to be deducted tne transfers and refunds from the Returned Soldiers’ Association, which amounted to £155 9s, making the net expenditure this year £762, compared with a relief expenditure of £9SS last year.

Electricity Account.—During the year the charges to consumers amounted to £76,851, as against £69,728 for the prpevious year. The working expenses totalled £5*9,228, an increase of £12,647, which is largely accounted for by the increased call upon the Diesel generating plant by the Public Works Department. This item showed an income of £6836 11s 4d in addition to the charges to consumers already mentioned. “Energy purchased” increased by £5327. Capital expenditure amounted to £8519 Ss 3d. The balance of the nett revenue account was £19 ; 394 9s sd, against £18,395 5s 2d for 1939-40. The fact that the balance of tho year’s working is being maintained in spite of heavy reductions in charges to consumers proves that the electrical engineer’s recommendations in this connection are on a sound basis. Hales of appliances wero again oh a high scale, amounting to £6755, against £6941 last year. The great increase in the use of electricity for domestic purposes is indicated by the growth of the amount advanced under hire purchase. In 1937 the debtors amounted to £450 3s and at the close of the linancial year just ended hire purchase debtors were £7033 7s sd, an increase in excess of £6500, which the council has had to find in cash from its revenue. Gas Account.—The results achieved in this department show that sales of gas have made only a slight fall and a *light increase in working expenses. Hales of by-products mako the results practically the same as last year. The sum of £40,769 represented the revenue of working account for the year, compared with £40,657 for 1939-40. The sales of gas showed a decrease of £170; tar sold fell by £445, and sales of coke were up £651. The working expenses amounted to £32,096, an increaftJ of £263 compared with the previous year. The trading profit amounted to £979, compared with £1655 for the previous year. The capital expenditure incurred during the year amounted to £2969. The net revenue account shows a credit balance of £3229, as compared with £3284 in 1940. 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 £2924, practically tho amount of the capital expenditure. The accounts owing by consumers at March 31, 1941, for gas and electricity | supplied, amounted to £3451, as compared with £3735 at March 31, 1940. Against this thero is a reserve for bad deots amounting to £3685. Abattoir Account.—The revenue for the year was £11,855 and tho working expenses, including purchases, were £10,243. The capital expenditure was nil. Reserves Account. —This account commenced the year with a debit of £474. The revenue from rents, pasturage, 'use of Sportsgrounl and bowling and croquet greens amounted to £1412, camp site fees £202, other receipts £167, making a total, including the transfer of £2900 from the general account, of £4688. Tho expenditure totalled £4196 5s iod and the credit balance at March 31 was £l7 16s 2d. Library Account. —Tho year s income is derived from rates, books, rentals, subscriptions, sale of books, etc., and amounted to £4819. A special rate of 13-40ths. of a penny in the £ was struck and a sum of £2940 was duly collected and credited to the account, which ends the year with a debit of £76 3s, compared with £llO 4s Od at the beginning of the year. Tho amount received in respect of the rental book department, viz. £1287 14s, an increase of £271 compared with 1940, must bo very satisfynrg to the library committee. Waterworks Account. —The credit balance carried forward at the beginning of the year was £3517. The revenue for the year amounted to £20,105 14s lid and the account closed with a credit balance of £1857 5s 7d. Transit Account. This department has had a record year . A comparison of the accounts

for the last throe years shows continued progress:— 1939 1940 1941 £ £ £ Passenger fares 7,050 7,708 9,643 Petrol and oil fuel 1,336 1,521 1,874 Oil 110 112 156 Repairs .. .. 575 990 554 Tyres 368 460 745 .Servicing .. .. 567 538 587; Total running costs 6,823 7,592 8,926 Passengers carried 587,771 642,536 789,618 Running results (Profit) .. £374 £248 £B6l The profit and loss account also reflects tne position and the figures for the transfer of net revenue account for tho periods mentioned above are: 1939, cr. £44; 1940, dr. £164; 1941, cr. £347. Aerodrome Account: The total revenue for the current year was £1998 17s lOd, the principal items being: Landing fees, x. 300; rental, £132; sales of wet tiers, wool and hay, £IOSB. The expendituro amounted to £1735 13s, the main items being: Wages, £409; purchase of sheep, £762; maintenance, £llß. The account closed with a debit of £398 14s 3d. The position regarding sheep at the aerodrome is that at March 31 there were 496 head of stock on the property. Bales of wool amounted to £199 Is 9d, and taking the stock on hand at the purchase price the debit balance is wholly accounted for. In addition, the sheep obviate the need for mowing the grass on the flying field and this, therefore, must be regarded as a very satisfactory result. Cemetery Account: During the year the sum of £lßl6 11s 4d was expended in connection with the two cemeteries controlled by the council, covering sexton’s wages and also materials used in connection with the scheme for improving the cemeteries. The result has ueeu most gratifying and the enhanced appearance of the approaches and the cemeteries reflects great credit on those responsible for carrying out the work. Opera House Account: This account had a credit of £IOO 2s 8d at March 31 last, and this must be considered creditable when it is remembered that further improvements have been carried out both in the Opera House and the Coronation Hall. Other Accounts: Tho position of the undermentioned accounts is as follows: Credit: Deposit account, £3221; sanitary account, £sl. Debit: Housing account, £523. Rates. Total rates ©truck for year 1940-41 £93,518 Amount outstanding Marc'h 31 £3,091 The amount collected represents 96.69 per cent, of the total amount struck, as against 95.83 per cent, last year, and 94.79 per cent, for 1938-39. The total of all rates unpaid on March 31 was £4561, compared with £6273 last year. The council this year decided to again offer a discount of 2J per cent, on rates paid within one month, of date of demand, and this concession to ratepayers involved the sum of £1494. District Fund Account: Tho district fund account, which comprises all the accounts mentioned, has a debit balance of £13,733 3s lid, as against a credit of £1950 6s 8d at the commencement of the year. Owing to increasing prices, tho council’s stocks have been materially increased and this, with the additional amount invested in appliances on hirepurchase, has affected the cash position. During the ensuing year care will need to be exercised, by trading departments particularly, in tho ordering of stocks. Replacement of Motor Vehicles: The council is not under any obligation to set up replacement accounts in respect of its motor vehicles (other than those operated by trading departments) and 1 therefore suggested to the council that some provision be made in.tho estimates for the year just euded, for the replacement of such vehicles in order that the cost of doing so might bo spread evenly over the ensuing years and thus avoid the need for a large amount to be provided for this purpose in any one year. This suggestion was agreed to by the council and the sum or £735, covering vehicles in the general, waterworks, sanitary and traffic departments, was appropriated and invested in tho Post Oifiee Havings Bank account. The balance of this account at March 31 was £772.

Moneys Invested with Public Trustee - : The various funds invested with the Public Trustee show certified balances as follow: —Accrued sinking funds, £65,842; depreciation electrical undertaking, £57,153; depreciation gas undertaking, £15,854; depreciation omnibus undertaking, £39; lire and accident insurance fund, £12,121; repayment principal, employees' housing loan, £1216. Total funds, £152,226. Loan Accounts: There is only one live loan account which has -no connection with the district fund account, and this is the sewerage loan of £IO,OOO, which is £316 17s 4d in credit.

Movements of Public .Debt: As previously pointed out, the amount of Joan maturing on June 1, 1940, was £22,OQQ, and the indebtedness of the city was reduced by this sum on that date. Under tho terms of tho conversion order, the further sum of £23,700 of loan debt matures on Juno 1, 1941. This does not confer any advantage on the special rate account, as the sinking fund payment for the current financial year will be increased by payment thereto of 4i per cent, on the debentures amounting to £98,980 which matured up to June 1, 1940. A further sum of £IO6B was also repaid in respect of conversion loan No. 2, which now stands at £30,738, having been reduced from £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; sewerage loan of £IO,OOO, £370; waterworks loan No. 1 of £14,300, £569; waterworks loan No. 2 of £8260, £328. Hospital Board Levy: The city’s contribution to the Palmerston North Hospital Board this year, covering capital and maintenance levies, amounted to £10,680 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 11s 7d. Fire Board Levy: The Fire Board levy this year amounted to £4450. A rate of fd in the £on the value oi : buildings only in the lire district, was levied and produced the sum of £342G 16s Id. Foxton Harbour Board Rate: Under the provisions of the Foxton Harbour Board Amendment Act, 1917, the council is required to sharo with other local authorities in the district any deficiency iu the accounts of the board, for which a levy was made upon constituent local authorities during the previous financial year. Demand for payment of tho sum of £339 having been received from the board, a rate of l-20,d in the £ was struck by tho council. This produced £444. There is, therefore, an increased credit balance of £l4B 12s 9d to carry forward against any future rate levy. After referring to the municipal baths, the railway reserve, Riverside Drive and Centennial Memorial the report concluded by giving figures illustrating the growth of the city, which are published elsewhere. On behalf of the council, the Mayor (Mr. A. Mansford) thanked the town clerk for tho exhaustive information -given. The various accounts, he stated, were in a sound position.