COUNTY FINANCES

Northern Advocate, 16 April 1932, Page 3

COUNTY FINANCES

BALANCE OF £15,700 STRICTEST ECONOMY OBSERVED. MANGAKAHTA LOAN CRISTS. The Wbaugarci County Council today considered the following- financial review, submitted by the chairman, Mr L. Webb:— "Members arc to be congratulated on the financial position disclosed in the annual balance sheet. As you are aware, at the commencement of the year the eouneil decided upon a cautious and conservative policy, dictated by abnormal financial stress and the uncertainty in connection with the collection of rates. The ratepayers have responded by paying- 85.23 per cent, of the current rates, in addition to reducing the previous year’s arrears from £5076 to £1394. When it is realised that many ratepayers have paid their rates out of, capital, the general position may be considered to be satisfactory to those held responsible for the administration of the county. It should be pointed out, however, that the cautious policy pursued by members during the financial year .‘just brought to a close must result in heavy expenditure in many ridings in order to restore surfaced roads to a reasonable and economic standard. Under the conditions prevailing, it was not prudent to undertake even normal expenditure in anticipation of revenue before the eouneil knew what had actually been received, , "The financial position has now been disclosed and must be gratifying to all concerned. Riding members are now iu a position to make a close and detailed examination of riding fin- ; anecs, and in many eases, I hope it , may be possible to make reductions in the rates to bo levied for the current ' year.

"In my opinion, the policy of the council should bo continued—that is to raise only sufficient revenue to keep the existing roads in a state of repair. Expenditure on new works must await the return of more prosperous times, notwithstanding tho many hardships that must in consequence follow.

"At March 31, 1931, tho county finished up with a credit balance £.1.1,086 (including £516 due by the Government), This year the credit balance is £15,705 (including £2900 duo by the Government), so that tho financial position this year has improved by approximately £4619.

"So far as the ridings are concerned, the credit balances at March 31, 193.1, totalled £3999 19/7, whereas this year they finish with credit balances totalling £10,189 4/4, an improvement of £6189 4/9.

“It must not ho-'overlooked, how ever, that there sire heavy commitments to be taken into account, and nobody can safely forecast the future. The present outlook is anything but bright, and calls for evecn greater caution in local taxation and expenditure.

“It is interesting to note that, for the financial year just closed, direct taxation in the county amounted to £2.1,878 and contributions by the general Government and Highways Board to £21,132. Loan Interest Accounts. “Most of the special loan interest accounts are in a satisfactory state, but attention is drawn to the, critical state of the Mangakahia an(l Opouteke loan interest accounts.

“Next month the half year's interest (£Bl2 10/) is due on the Maugakakia loan, with only £373 17/7 available to meet it, and of the other loan interest account a transfer had to bo made at March 31 from the riding account to balance it.'

“Until the position develops and outstanding loan rates are recovered, it is advisable as a precautionary measure that all expenditure in the riding concerned be suspended (except maintenance carried out by the two surfacemen). “Authority should also be given the clerk to take the necessary steps to enforce payment of all outstanding loan rates. The special rates (1.93132) outstanding in the two loan ai’eas referred to total £SBO, and in respe-ct of 'the previous year, £lsk* “The seriousness of the position is intensified by reason of the hopelessness of recovering special loan rates duo in respect of occupied Crown lands, and also in those cases where property is mortgaged to State departments," TODAY’S DISCUSSION. Mr Webb congratulated the staff, and especially the clerk, on the very full information supplied. The preparation of the balance sheet had been more difficult than over before, and IVIr Hemphill had worked day and night upon it.

The- chairman added that the riding balances indicated rather a false position. 'Much necessary work had been, shelved until it was known what money would bo available. Large expenditure was necessary to bring the maintenance of roads to the necessary standard.

Cr. Blake said that his riding was in an unfortunate position, chiefly due to the large* number of sheepmen and graziers. He moved that stejis be taken to enforce- collection of outstanding loan mots. There were many who could pay and bad not done so. The motion was seconded by 'Cr. A. Clarke and carried.

Or, J. A, S. Mac Kay endorsed the chairman’s remarks regarding the work done by the stall, to which ha attributed much of the satisfactory position. Throughout the year the staff had constantly kept the council fully posted on the position as it developed. CT. F. Elliott spoke on similar lines. Ho expressed gratification at the amount of rates collected in his riding, but said that heavy expenditure was immediately required on many roads.

Or. J. H. Hayward attributed the fact that the most difficult year in the council’s history had ended with credits showing in every riding, largely to the prompt, advice given by the staff. Members of the council should he congratulated upon keeping expenditure within bounds. The review was adopted. Next Year’s Rates,

Rates for the ensuing year were struck as follows: —Otonga 3d (reduction Id), Hikurangi 3d (reduction Id), Kiripaka 2]d (reduction -Id), Maugakahia 2Ad (the same), Man mi 2?d (the same), Mangapai 3d (:]d), Maungakaramea 2,d (id), Manaia 3ld (id), Onerahi 2d (id), Wairna 2-Ad (id), Waipu 2id (id).

The rates may be amended at the j confirmatory meeting next month. In the course of further comment, the chairman said that bail it not been for the Government rebate ho would have just been able to make ends meet in Otonga. Or, T. N. Blake, in view of the financial position of his riding ami The comparatively small rate collection, was unable to advocate a further decrease. Previously Mangakahia’s rate of 2ld was the lowest in the county. , Or. A. Clarke said that heavy expenditure on bridges iu his riding had been an unexpected drain on re-

sources. " The rates in my riding will now be 50 per cent of what they were six .years ago,’’ said Cr. .1. A. S. MacKay (Wairna), in fixing his rates at 2Ad, a. reduction of ijd. Stating that he was particularly fortunate in that long stretches of highways and metalled roads ran through his riding, Cr. A. .1. McKay (Waipu) said that -lie was prepared to accept a reduction of Id, provided the council was agreeable. The chairman thought it would bo advisable to limit the reduction to |d at present.

Riding Balances. Riding balances wore passed as follows; — Tlikurangi .£lO.Ol, Kiripaka £1139, Mannn £S3"), Mangakahia £;'9B, Mangapai £BO3, .Manngakaramea £1439, Manaia £.027, Wairua £171(1, Otonga £O3O, Waipn £1409, RIDING’S DIFriCULTY. NO HIGHWAY IN MANGAPAI. An appeal for assistance for-Manga-pai, which he considered was differently situated from any other riding in the Whangarei County, was made by Cr. A. Stephen, , at the meeting of the Whangarei County Council yesterday. He said that several other members, in reducing their rates, had spoken of the benefits of having long stretches of main highway running through their ridings. There was no highway in his riding, and ho thought that some compensating grant should bo made from the surplus of the Government rebate.

The chairman pointed out. that this had already been embodied in individual balances, and a change would be out of the question. He agreed that the Road should be declared a main highway, but the efforts of the council to get this done had been unavailing. Ho suggested that the special case of Mangapai might be readjusted in framing the estimates for general account, v Cr. T. N. Blahe said that although there was a long mileage of main highway in Mangakahia, much of it had been constructed out of loan money, and the ratepayers wore saddled with heavy interest. Cr. Clarke said that the people of Manaia had to find £I3OO in interest last year.

Cr. .7. A. S. Mae Kay thought that Mangapai had a. good claim for consideration.

The chairman’s suggestion that the position could be reviewed in framing estimates for general account was adopted.