MORNINGTON BOROUGH FINANCE.

Otago Daily Times, Issue 16361, 19 April 1915, Page 2

MORNINGTON BOROUGH FINANCE.

RATES AND TRAM "FARES INCREASED. REASONS FOR THE CHANGE. For some time ■ past the members of the Mornington Council have been giving very anxious thought to the finances i of the borough, and they have lately taken a sudden determination to try to place these upon a better footing. _ During a period of four years the council has been going to the bad at .the rate of £1100 per annum, roads and works have been neglected in a greater or less . degree, and' the borough cars are not in best of condition, though better than they were some some ago. There have been two contributing causes to the loss that was being made upon each year's operations; First, the reduction in the general rate from Is 9d to Is 3d (it being subsequently raised to Is 6d), and second the expediture on the char-a-banc and its track. The first of these causes was responsible for a loss of close on £1500, and the second for a loss of nearly £3000. Under these circumstances, therefore, 'the council has decided to 1 raise the general rate back to Is 9d, and also to increase the tram fares. '

Cr Brickell, when these changes were mentioned to him on Saturday morning by a Daily Times reporter, explained the reasons which had made them, necessary, and also pointed out what'the council in-, tended to gain by them. It became obvious to the council some little time ago that it could not continue to lose money at the rate it was doing, and after cutting out the char-a-bano it was expected that the finances would automatically right themselves. "And so they would in time," continued Cr Brickell, "but not quickly enough for bankers under the present financial conditions. The council was/ then faced with the necessity of having to raise money speedily. The solicitors advised us that this could, not be done by loan, and we had to take the only course open, which was to raise >tho rates as advertised, and also to increase the tram fares. The resolution dealing with the second matter was passed at x a meeting of the council held on Friday night, and runs as follow:— "That the following alterations shall be made in the tram fares: That on and after May 10 the 'present ticket giving 12 Id rides bo withdrawn, and that a new ticket be issued showing 14 spaces, two spaces to be punched on the up ride and two on the down." A special meeting will be held this week to confirm the above resolution. Continuing. Cr Brickell pointed'' out that these incrcasffs would give an excess of revenue over expenditure for the coming year of £3103, which would go towards the reduction of the overdraft after allowing the sum of £1800 for roads and works, £2VX> for the widening of Mailer street, and £200 for the formation of the M'Donald subdivision. It was expected that the increase in the rates would bo for one year only, and was being collected simply for the- purpose of raising money to wipe off the losses resulting from the unfortunate experiments of past years.