AUCKLAND CITY COUNCIL.

New Zealand Times, Volume LXXIV, Issue 4883, 7 February 1903, Page 5

AUCKLAND CITY COUNCIL.

PRESS ASSOCIATION. AUCKLAND, February G. At a mooting of the City Council tho Finance Committee presented a report upon tAio financial position. It stated that tho result of important items of increased and necessary expenditure lias been that tho credit balance of £35, G of two years ago is expected by 31st March, 1903, to ho converted into a debit balance of £14,600. Now that tro call for much of the expenses has passed away, it ought to he expected the estimates for the ensuing year would show a return to normal conditions, and bins •would ho so, hut for some three or four items. The estimates for tho ensuing year, including thoso items, still show a deficiency of 4GOO, and it is high time tho Council took into its serious consideration how this expenditure is to he mot and the existing dehir, balance reduced. To borrow in order to pay olf tho accumulated debit would only he to add to the annual pcvman ure charge for interest, without maldng any provision for the deficiency shown hv the estimates to exist. Tho committee rails attention to the only two alternatives open, via.—Either to make a general rate sufficient for the adequate and duo up-keep of the city, or by retrenchment in ttio expenditure upon street works and other such services-' Should tho Council entertain a proposal to borrow, say £15,000 to pay off the debit balance, the iponcy would require to be raised at 4% per cent., placing an increased annual charge of £0759 to the interest account, and restricting the Council’s power to overdraw m future. The estimates of receipts and expenditure for tho coming year to March, 1904. show, on tho assumption that the rate continues as at present, an estimated deficiency on tho general account at 3.lst March, 1904, of £19,120, an increase of £4G2O on the Council's debit balance for tho year ending in March, 1903, which is estimated to bo £14,500. Air J. Stichbury said that the position was by no means alarming. Tho total liabilities were about £550,000 and assets over £740,000 so. that the Council had really a quarter of a million to go and como on. Mr Parr said lie was satisfied that the ratepayers would, not agree to an increased rate. Mo thought it would bo folly in the extreme to increase tho rates, and with economical administration of the Council’s funds, such a step would not ho necessary. Consideration of tho report was adjourned.