MUNICIPAL FINANCES

New Zealand Times, Volume XLVII, Issue 10898, 12 May 1921, Page 5

MUNICIPAL FINANCES

REVIEW BY NEW MAYOR MATTERS FOR FUTURE ATTENTION. OUTLOOK FOR COUNCIL. A comprehensive review of the citw’s finances, and of the position with which the new council is faced in embarking on its duties, was made by the Mayor (Mr R. A. Wright) at yesterday’s installation ceremony. The revenue of the financial year ended on March 31st last, he said, was the most exceptional in the history of the city. It had now exceeded the million mark, standing at £1,078,428; the figures for the previous year were £893,683. The expenditu(re under all heads was rather more than the income, large though the revenue was. It amounted to £1,106,496, or £28,068 more than the revenue. Bearing in mind, however, the conditions under whioh the late council had laboured, this result was nothing to do anxious about. The overdraft on the district fund now stood at £212,900. It had increased because the council had been obliged to carry out variolas works out of revenue, since it had been unable to borrow money during the war. Since 1914 over £150,000 had been expended on special works out of the district fund. He did not wish to conceal anything and wished to place before those present the real position of the city's finances—the very worst. By August the overdraft would be increased by approximately £70,000. for none of the rates would be forthcoming till then. That would raise the overdraft to £282,900 within the next few months. The tramway account ' also showed an overdraft of about £55,000; this money was not lost, but hod been merely Used for capital expenditure. The assets easily covered -jjne whole amount. ON THE OTHER SIDE.

Turning to the other 'side of the financial question, Mr Wright said that there were eundiy credits to the capital aooount amounting to £47,565, while there waa £165,095 on fixed deposit. The full benefit of increased tram fares waa not yet apparent, but he had no doubt that it would be shown to the greater extent. The revenue of the city would now be supplemented by the addition to the city Of the borough of Miramar. One matter for early attention would be the raising of the loan recently authorised. It was essential that the water supply scheme should be pushed on with, and the money was urgently required for that and other purposes. The ■council would also have to deal with the problem of the new power station. Tney would have to find the best 'means of raising moneys at a fate of interest that would not be extortionate. The public debt of the corporation _ was now £2,560,000, against which there was a £500,000 sinking fund. The assets, excluding reserves, were valued at not less than £4,000,000. Wellington must, and would, increase in population, and they had to prepare for it in every way. The city Was a e sound as the Bank of England commercially and in every other respect, besides which it was also eound in health. In view of the present financial situation the council must assume a careful and prudent administrative policy. It must try to live within its income.

THE FUTURE. One of the matters for consideration in the future wae the provision of a new railway station. A proposal would be submitted to the council shortly suggesting the co-operation of the counciland the Harbour Board in urging that the work be expedited. Everything possible would be done to provide the necessary alterations in the tramway system when the works were under way. Another matter for attention was the overcrowding of tho trams. At present the oars were taxed to the utmost limit during rush hours. The problem was: Could they continue as at present until the hydroelectricity was available, in about two years’ time; or were they to spend more money on the powerhouse at onoe to provide temporary relief, hearing in mind that it would be wasted when the hydro-electric scheme was in operation? The municipal roll, which was in a very bad condition, would need to be purged, and he hoped it could be done without much expenditure.