CITY FINANCE.

New Zealand Mail, Issue 897, 10 May 1889, Page 19

CITY FINANCE.

ADOPTION OF THE LOAN PROPOSALS. At the City Council meeting last Friday, the Mayor moved the adoption of the Finance Committee’s report (taking it, for convenience’ sake, in two parts.)) Before doing this, his Worship complained that two Councillors had given the report to the press for publication, in violation of a principle which he coneidered should be observed —that these reports should be confidential among Councillors until they came beiore the Council and were lupported by necessary argument and explanation. After a short discussion ou this point, the Mayor addressed himself to the report. Referring to the estimated receipts,he said they were spmewhat increased by the increased valuation of the city. He touched upon the various items on which increases, were shown, T&ftrßJ*fcffig with reference to the water-oloset

and dog rates, that the revenue had not hitherto been carefully collected, and would be largely increased this year. Speaking with reference to the estimated expenditure, he poiuted out that there was an increase in street lighting, 15 mouths havmg to be provided for. It was probable that some retrenchment might be made in the Fire Brigade expenditure, that branch of the service not haying yet been inquired into. However, provision was made for carrying it on as before, and for purchasing extra ho3e required. He thought it was a subject for congratulation that the work of scavenging and street watering had been let by contract for approximately the same charge as last year, and he thought ' that oircumstaaces promised well for the future of the contract system. The item collection of refuse, £640, was a new charge, but he thought the money was well spent, and would have a direct beneficial effect on the health of the city. The expenditure upon maintenance this year was £5610, an increase of £IOB3 on last year, so that the streets would be kept in efficient order. Other exceptional items of expenditure were the Queen’s Drive (£250) and the town clock (£720). He mentioned that a saving of £llsO had been effected by retrenchment in the Corporation service, and said the work was as efficiently done, if not more so, than in the past. It was understood that extra engineering assistance would be required for loaa expenditure, and having come in daily contact with Mr Wiltshire, ho had every confidence in recommending that the work be entrusted to him. (Hear, hear.) He did uot anticipate any expenditure beside what was set down, except perhaps on account of McCarthy’s claim. Having referred further to the items of receipts 'and expenditure, his Worship said the position justified the city in saying it had a margin on which to provide interest for a loan, and the Committee considered that a loan should be raised. He referred to the necessity for improved drainage, pointing out that the death-rate was higher in in the other cities, and said it was proposed to extend the present system of draining into the harbour. The amount provided (£15,000; would extend drainage all over the city, and provide for a good many years to come. It was also proposed to replace with brick culverts tho box drains on the reclamation, and generally to put the drainage of the city in an efficient state of repair. The whole of the streets of the city would be put in good order. With reference to the streets on the Thorndon reclamation he thought the Council having entered its protesc should put these streets in repair, and the expenditure of £2OOO on the To Aro reclamation streets was necessary if the land was to be leased. With respect to the Town Hall, he maintained that Wellington had reached a stage when such an accessory was necessary, and he briefly referred to the proposals with leferenceto the Thorndon recreation ground and esplanade, and tho roads through the town belt, &c. A new cemetery was one of the necessities of the town, which, unfortunately, they were prevented by legislation from establishing at Melrose. It was probable that further legislation would be sought for in the matter. Even then, however, it might be necessary to obtain another site—probably on the line of the Manawatu railway. In conclusion ho expressed a hope that the proposals, as a whole, would be agreed to, and that they should be able to justify them to the citizens. The whole of the works proposed were of a most desirable character, and much good would be done to q.he city by them. He read the following summary of estimates for 18S9-90 : Streets Lighting, £1990 ; scavenging and watering, £1790 ; collecting refuse and burning, £B4O ; maintenance, £5610 £10,140 ; waterworks account, labour 1 and material, £4768 ; Fire Brigade, £IOSO ;• city reserves, £9OO ; interest ou loans and overdraft, £28,967 10s ; salaries, total, £2086 ; hospital and charitable aid, £3092 ; Binking fund, £700; Queen’s Drive, clock, N.S. dep6t and suudries, £1670; contingencies on general account, £2437 lls2d ; contingencies on other accounts, £S2S 9j 8d—£56,339 10s lOd. Estimated receipts Rates : General, £15,434 16s;; water, £12,280 ; special, £7717 Ss; charitable aid, £3215 Us 5d—£38,647 15s Sd ; rents (including Town Belt), £3948 15s 2d ; licenses, £4781 0s lid; fees (building), £300; interest deposit accounts and Harbour Board, £2162 ; Tramway Company and sundry, £3OO ; water closet fees, £I2OO ; water supplied by meter, £5000; total, £56,339 10s lOd. He moved that the statements of receipts and expenditure and iu connection with the special rates be adopted. Councillor Brandon suggested that the items, interests on loan and contingencies, be held in abeyance until the question of tho loan had been decided. This was agreed to. Councillor Brown, in seconding the motion, thought the city was to be congratulated on the progress which had been made, and agreed that the amount of dog lax collected last year did not represent the number of dogs in the city. He suggested it as a matter for future consideration whether it would not be well to lay Willis-street, from the Bank of New Zealand to the Duke of Edinburgh Hotel, with wood paving. Councillor Smith thought the Mayor was too sanguine about the revenue from rates ; he believed the rates were too high, and that they would fall off next year. The Mayor said the development of trade, in the shape of the flax industry, must have a good effect on the city eventually, even although it caused some empty houses at present. The motion was put and carried. . The Mayor, referring to th 9 hospital aud charitable aid rate, said tho reduction in the rate was really from 4d to 2Jd, there having been an excess of Id in last year’s rate to provide for a deficiency of the previous year. He complained that there had been no reduction in the hospital expenditure, which up to the end of last year was £7960 8s Id, as compared with £6842 7a 7d at Dunedin. There weie 656 in-path ntß at Wellington aud 910 in Dunedin, aud at the latter place the treatment was better, for the

deaths were 76 as against 62 in Wellington. He pointed out that the Dunedm hospital served a district containing nearly 30,000 people more than the Wellington Hospitsl had, and yet more money was spout here ! He was credibly informed, too, that the staff at the Wellington Hospital was larger than in any other hospital in the Colony. He attached less importance to the actual expenditure than to the spirit of pauperism which was being cultivated —a spirit which •sapped the dependence of the people. People •suffering from the consequencess of vices avere, he believed, able to go there and get relieved at a nominal cost, and in that way the Hospital was simply degrading the •population. To do this and to retard a feeling of independence wa3 exactly what State should not do. He expressed an opinion that the Dunedin Hospital bad been vindicated from all the charges recently made against it, and was one from which the Wellington Hospital might learn many lessons. ... The Mayor then moved, and Councillor Williams seconded, that clause 1 of the Committee’s report, with reference to the loan proposals, be adopted, namely, that the Council decide in favour of the loan as now presented, and that the necessary steps be taken to place the matter before the ratepayers in terms of clauses 177 to 184 of the Municipal Corporations Act. Councillor Brandon moved as an amendment, “ That so much of the report of the Finance Committee as refers to drainage works be referred to the Sanitary Committee, with the instruction that, in the opinion of this Council, the existing method of disposing of the sewage is unsatisfactory ; and any loan proposals should include the cost of constructing a separate system of drainage, whereby the discharge of sewage into the harbour will be avoided; aud that the Sanitary Committee be directed to report to the Council as to the probable cost of such a system.” He referred to the great importance of good drainage, and strongly condemned the present system of tending sewage into the harbour —the consequence of which was that, sea water being neither a disinfectant aor a deodoriser, filth was cast up ■ n the beach again—at Oriental Bay, for instance. He farther alleged lb.~t as the drains did nob at present get a proper fall into the harbour, at every high tide sewer gas was sent back into the streets. He quoted statistics to shew that in other places the system of sending the sewage into the open sea had at once reduced the death.rate (higher here than in any of the other cities in New Zealand), and urged the Council to adopt that system, casting the onus on the ratepayers of refusing to increase life. Councillor Chapman seconded the amendment, recognising the desirableness of draining into the open sea instead of into the harbour. If that were possible, he thought •with Councillor Brandon that it should be Seed, while he abated nothing •of his desire to see the drainage taken out 4o the open sea, thought that to carry this amendment would simply be to delay the 3oan proposals. (Hear, bear.) Councillor Heaton opposed the amendment, pointing out that the drainage of (Sydney went into the harbour without any had resulti. ' , , Councillor Smith thougnt the present system of drainage wa3 not a bad one, and that it could be improved by a low-lying intersecting sewer, with silt pits, which would enable the sewage to be pumped, by way of >a main drain, to the open sea. He sympathised with Councillor Brandon’s object, and would support the amendment if it were more genera l . The Mayor pointed out that there were works which could not be escaped by the amendment, such as drainage for storm water, for instance. Councillor Williams said the English of Councillor Brandon was that a very iarge loan would be wanted. The city was now very heavily rated, and, if the rates were greatly increased, the effect might be, as in other places, to drive people out of the eifcy-.i‘ (Councillor Harris : Oamaru !) Yes, as had happened in Oamaru. He thought no person was justified in attempting to increase the rates. Councillor Brandon said the death-rate was higher in Wellington than in other cities, but had not shown that to be due to the drainage system ; he had mob accounted for defective drainage in the outlying districts. In Sydney harbour, for instance, where the drainage had. goue into the harbour for many years, what ill effects had there been’ If the amendment were carried, the remainder of the schedule must be thrown over —that was the meaning of it. And what was to become, then, of all the necessar y works proposed ? He yen,keyed to gay that the citizens would not i estate to . declare in favour of these works as agair.pt a i most costly Bystem of drainage. (Hear, hear.) Councillor Willoston had been made most unhappy by Councillor Brandon’s speech, and had expected almost at any time to see a row of undertakers in front of him. (Laughter.) Councillor Brandon might say that he himseif very nearly added to the death-rate through a disease caused by bad drainage typhoid fever. , . Councillor Brown saw no probable injury from the drainage continuing to flow into the harbour. He considered that the new system of destroying rubbish would have a good effect upou the health of the city. IJe complained that uo provision had been made for the Island Bay watershed, a great part of which lay in Te Aro. Councillor Frasei agreed with other Couu. cillcia that it Would be very desirable to drain into ic'd open sea if possible, bub thought it was simply impracticable if it was to cost so much. Ho should support Councillor Brandon in order that light might be thrown on the proposal. Councillor Moellor regretted that he could not support Councillor Brandon’s amendment. If that amendment were passed it would necessitate a delay ; and a delay meant an increase of the death-rate in bis ward. The amendment was then put aud lost by 7 to 6, namely—Ayes, 6 : the Mayor, and jPonqcillors prandpn, Chapman, Willeaton,

Fraser, and Smith. Noes, 7 : Councillors Williams, Harris, Seed, Moeller, Heaton, Muir, and Brown. It was then decided to go through the schedule item by item, and the item of £15,000 for drainage was proposed. Councillor Smith moved that this be increased to £25,000 with a view to extending the scope of tho drainage. Councillor Brown seconded Councillor Smith’s amendment, which, after a short discussion, was lest on the voices. The item £10,500 to recoup the general fund for moneys spent on permanent works was agreed to, as were also the items formation of streets, Thorndou reclamation, £5500 ; ditto. Te Aro reclamation, £2000; extension ot Taranaki, Tory, and VictoriaBtreeta, Cain bridge-terrace, Clyde-quay, and Victoria-esplanade, £5000; formation, &c. f in private streets. £2OOO ; channelling, &c., in other streets, £4OOO. The item £1”,000 for a town hall was moved by the Mayor, who expressed regret that the Council appeared to be opposed to it. Councillor Harris seconded the motion. Councillor Chapman moved that the item be struck out. He held that a town hall

was not uceded for purpose- of utility to the town. Tim Corporation, if it carried this proposal, would be in tho position of a person who, unable to meet his engagements, borrowed money for a luxury. Counoilio" Brown wished it understood that the Council were not insolvent, He supported the proposed town hall. Councillor Heaton supported Councillor Chapman, as did Councilor Smith, who contended that the site selected (next to the Corporation buildings), was not suitable. The Mayor said there was no site definifcely fixed. The amsu imenfe to strike the item out was lost by S to 4, viz.:—Ayes (for tho amendinent) : Councillors Chapman, Fraser, Heaton and Smith. Hoes : ' The Mayor and Councillors Williams, Harris, Wil'eston, Seed, Muir, Moeller and Brown. The item was passed. Thorudon recreation ground and esplanade on reclaimed land, £OSOO. —Councillor Hea. ton moved to strike this out. Item retained by 9to 3. B, >ad3 through town belt. £2500. —Agreed to. New cemetery, £4OOO. Councillor Fraser moved to strike this out. Item retained by 9 to 3. Contingencies, £looo.—Agreed to. Councillor Heaton asked whether it was proposed to borrow the money in the Colony or at Home.

Tho Mayor said he could not positively say. Having interviewed several persons of experience, however, be believed the Corporation would be able to raise a 4i per cent loan at par at Home, aud they might get a small margin. The loan schedule (unaltered) and the Committee's report were then adopted.