GROWTH AND PROFITS.

Northern Advocate, 8 February 1913, Page 3

GROWTH AND PROFITS.

STATEMENT BY TOWN CLERK

The following report by the Town Clerk, showing the growth and profits of the waterworks, was laid on the table:—

To His Worship the Mayor, Whangarei.

Sir, —I have pleasure, in accordance with your instructions, in supplying you with the following return showing the growth of the present waterworks since its inception. I have also added an estimate of the receipts and expenditure for the current year and next year. You will notice that both the receipts and expenditure have increased very rapidly, though with flight fluctuations. Up to the 31st March, 1912, the profits from the department amount to £1018 17s Id, or an average of about £100 per annum. The year ending on that date supplied £448 of that profit. The estimated profit for the year ending on the 31st March next is £640. For next year, that is to 31st March, 1914, I estimate the profits at £800. This is providing it is not found necessary to cut off any of the extra supplies. This increase on the present year is accounted partly by the fact that the consumers and non-consumers rates for the current year were only charged for ten months, that is to the 31st March, instead of the 31st May as in the past, so as to bring the period of the rates into line with the general and special rates, and partly by the increased number of consumers. During the whole time the works have been in operation no extra money has been raised for extensions of mains. All extensions have been made out of revenue. Quite £1500 has l been spent out of revenue for this purpose, which further proves the soundness of the scheme from a financial point of view.

You will therefore see that by the 31st March, 1914, there will be a credit balance on the water works account of £2455, which will be of considerable assistance in the payment of interest for a few years on whatever loan is required for extensions. Eight hundred pounds profit per year will pay interest and sinking fund at 6 per cent, on slightly over £13,300. If the Maunu scheme is adopted it will probably cost, with all preliminary expenses added, about £22,000. We will therefore have to find money to pay interest on £8700, which amounts to £522 per annum. The credit balance at the 31st March, 1914, of £2458 as mentioned above, will provide for this additional sum of interest for nearly five years. As the Maunu scheme would tap new country and the town i:; steadily progressing, 1 think it is fair to assume that our additional profits will amount to £100 per annum. Therefore by the time the credit balance of £245S is spent on interest there will be an incrtased revenue per annum of £500, which will be sufficient to pay interest without striking a special rate at all. A re-valuation of the borough is sure to be made before that time, and is certain to increase the rateable value and therefore the rates. In these figures I have not reckoned on the Limestone cement works taking any water, but should they decide to do so our profits will naturally be considerably larger. In these figures I am not reckoning on any increase in the cost of maintenance, for a new water supply plant will require very little attention and the present staff, with occasional assistance, should be able to cope with the work. (Signed): A. L. DIXON, Town Clerk.