THE CITY FINANCES.

New Zealand Herald, Volume LIV, Issue 16460, 9 February 1917, Page 9

THE CITY FINANCES.

NINE MONTHS' OPERATIONS. '--. ■ '■ i -5 :*-,'.t ■*.-. -■ . r.- ; '' - GENERAL ACCOUNT REVIEWED : PROBABLE SMALL DEBIT. . |An . interim- statement regarding the finances of; the Auckland' City Council, I covering the tint months of the curj rent financial year, was made at last evening's meeting of the City Council by the ; Mayor, Mr. J. H. Gunson. - ' "f j, The Mayor stated that he had -gone | carefully into the 'position for the nine months ended December 31 with the city treasurer, and he had found that on the whole the returns on both sides had relatively, harmonised with the estimates. Of the £61,000 estimated to be received ,from the general'rate of Is 4d in the £, the sum of £58,117 had been received. The total amount collected for the year would amount to £64,000. The arrears and penalty for the previous years already had I been exceeded by £262, and this probably would be increased' by r a,'further £200 by the sale of the Beach Road fire station to the Fire Board the sum of £5000 had been received, of-, which about £3500 ' would be the proportion remaining, to credit in general account. There were I several lesser increases of receipts, and these, with the above-mentioned larger returns, account . for the . excess receipts during the nine months. "? . If the estimated expenditure had hot been exceeded, proceeded the Mayor, there would have been a substantial credit balance available in general : account but other authorisations and addi1. expenditure to the estimates had' ■ ready absorbed this. The amount allowed on the estimates for salaries and £»«» would be exceeded by about £2000.' This was due primarily :to half-pay to men on active ■ service, which liability had been a steadily increasing one. : '- At the outeot of the year, while some provi-' sion was made for this item, it was im- j possible to forecast then to what extent such would be necessary. With the enlist- ; ments # from the council's staff increased financial . provision will have to be provided in this year's disbursements. .;?'. Parks, Endowments and Streets. In a reference to the city parks the Mayor said that in. accordance: with the decision of the council,. the entrance- and' lower portion of Myers Park, around ; the' kindergarten, were completed, the work being expedited/- with the result that an excels expenditure over the ' estimates would be reported. , The condition of the endowment property which : fell into the council's hands, and compensation, to lessees, would absorb a sum exceeding by £1000 that provided in the estimates. Ihe question has been carefully considered by the Finance and Legal Committee and sub-committees thereof, and the expendi-. ture has been unavoidable, as many of the proporties were in a disreputable, con-! dition, and before letting or leasing "gain had to be renovated. Valuations 'also were speedily completed and payments accordingly required. . j .'.'..[- i The position in ■ connection with the streets at the half-year, said the Mayor, was as nnder:—Net vote as- per estimates, £40,170; expenditure for the first six monthiK J ended September 30 last, 622,254. For the remaining half-year now current there therefore was available only £17j916. which ; necessitated a, curtailment in the rate of expenditure. This had'been effected *by the revised programme of November last, and he' was in a position to advise the council now that the original vote would be approximately , adhered to for; the full period." - *t. • .Debit Balance of £3500 Expected. v- A further £1000, the Mayor continued; would have to ; ; be - provided for works at Remuera, chiefly in relation to the Vincent Road straightening and compensation claims, also for improvements at-the corner of Remuera Road. The payment of £2100 for the purchase of the Bangitoto quarry at Remuera, an area of six acres, represented \ an extra item, which was unforeseen, and for which no provision at the outset was made. The 'loan money available for the extension of the Art Gallery was £4000, whereas the'payments alone under the contract accepted by the council exceeded that amount by j £200. to' which must be added work costI ing £400 ; outside the contract. Provision for this excess must be met from general account. In accordance with the council's authorisation i the expenditure on the Domain would exceed the sum provided for in the estimates, of which the council had had full particulars Ss! • ITheMayoV proceeded :—" I have not at; this point'deemed, s :it necessary to go into further: details j: or submit any "complete financial statement, it ''"seeming to me that a tentative statement of this kind will supply the council with information ; necessary, pending the statement of; the complete returns for the year, which will end two months hence. Accepting, therefore, that this is sufficient for the present purpose, the forecast in. regard to '■ the ; operations in general ■ account at the end of the year indicate a debit balance of £3500, which will be extinguished in next... year's' estimates. An important point which has a direct bearing upon the general "account will be the matter as to ; how the council ' will' deal with the vari ? ' ouß market accounts. The general account to date has provided a considerable sum for rental of the main market site. There ! are also initial expenses and subsequent . debits in connection with ■ the . fish mar- , ket. If it is decided .to Vojien separate accounts for the markets from the outset, j as may be best, a credit to the general account for the amount, advanced since the commencement 1 would then be due." Reference to Other Accounts. The figures quoted, the Mayor pointed out, related only to the general account. Takine, other operations of the council into consideration, the total receipts were expected to exceed £400,000 for.the finan- 1 cial yew, which would be a record. With | a business of' this diversene3«. the.csti-i mates, while beine closely followed, could.i be primarily for guidance only. .Through- j out an'v year there ; were bound to arise miscellaneous items which demanded!* attention _ end further financial provision, i In addition, to the general account and other accounts, there were the loan ac- j counts, in which the council's operations were still extensive, particularly when regard was had to works such as those in connection with the new eastern outlet, drainage, and streets improvement Joan and the ritv markets.- For the markets full financial provision was made, which Would constitute no choree whatever upon the rates or the special rate for interest or sihVn? funds, as' the markets are Selfsupporting, with a prospective balance to credit. In the streets improvement loan 'there was „»;. credit balances of'' ;£?0 846, which'the Works Committee proposed to o«k th" council to; allocate an under Park Road in concrete, P. 9000: Guar Street continue?™ over railwav shed site in. concrete. £*000. The balance/ of *35-846 would 'bo - available for r,; Beach ( R/>Rd. . ...' :l,„ ':' , -;:'/y Tn referring to the 7 anticipated, dbit balance in the <wieral noeoiwt, ; the-Movor reworked :—"Tf yon • approve, provision will made in next dear's estimates to lion Mite ft. This ran jie pffeefpd without undue strain. ■ Tn the current vepr's'liMti. mnfeg extraordinary . items and improvements of \' nnn-recnrrinp character.' for vrT,,Vli financial nrnyjqjon had to hoi rnn/?o this year, totalled less, than £111400. This ■ statement sTinnT<l be treated 'as a pummarv for the information only: it does not purport to be n -financial, statement. Tt meHv deals with "one phase of: the coimpil's finance, ' and is 'pnt-'in'any.-'way a statement in relation, to works;" C?! ■