LOSS OF CORPORATION REVENUE.

Otago Witness, Issue 2105, 28 June 1894, Page 3

LOSS OF CORPORATION REVENUE.

A SIXPENNY RATE SUGGESTED. At last week's meeting of the City Council the question of the estimated loss of revenue to the council through a reduction of licenses in the city and other causes was considered. The matter was brought.up by His Worship the Mayor reading the following memorandum : —

The Licensing Committee having decided what licenses are to be extinguished, T, in accordance with my promise, now place before the council what Tbelieve to be its position at the end of the financial year.

The council will remember that when the estimates for the year were framed the Finance Committee made a recommendation (which the council adopted) that in order to make both ends meet at tie end of the financial year a sum of (in round numbers) £5900 should be transferred from the estimated surplus to credit of the gas account during the year to the municipal account. In the

matter of fees from publicans' and bottle licenses <fee. we estimated that a decrease of iilOOonly would take place as against the revenue of the previous year. It was also estimated that a sum of £5000 would suffice for city work", and for domains, Town Belt, and reserves a sum of £893 10s was estimated to cover the expenditure. I have obtained from the town clerk and the officers of the various departments careful estimates of what they think the position will be at the end of the financial year, which I have myself carefully verified, and which may be thus summarised :—: — Gas Department.— After making allowance for an extra charge (not contemplated when the estimates were framed) of about £800 for gas stoves, &c, and £300 for meters, metals, &c, we find that the credit balance to gas account at the end of the year will be only £5244 ; and this will include £500 contractor's coal deposit, and gas consumers' and other contractors' deposits amounting to £386 7s Id, or together the sum of £886 78 Id, which sum cannot of course under any circumstance be transferred, and must therefore be deducted from the estimated credit balance of £5244, reducing that amount to £4357 12s lid. It is further obvious that we must, in addition to this, leave some credit balance to the account in order to provide for contingencies, and I estimate thia should certainly not be less than £500 ; and thus the credit available balance at the end of the year for the purpose of transfer would be £3857 12s lid, instead of £5900, or a deficiency of £2042 7s Id in this item alone. In regard^ to f ees'f rom publicans', bottle licenses, Ac., as the immediate resulc of the action of the Licensing Committee, a reduction in our estimate will take place of £1165, and other indirect losses from the same cause (which will be enumerated presently) will accrue amounting to £525 ; or a total of £1690. With regard to the public works estimate of £5000, having in view the expenditure to date and the extra works already sanctioned by the council, and the* probable further commitments in the same direction, the city surveyor, after a very careful analysis, estimates the excess expenditure at £1550. For domains, Town Belt, cemeteries, and reserves generally it is estimated the excess of expenditure will amount to at least £450. There are various other items of excess expenditure and deductions in receipts which will be shown later on, aad need not, therefore, be here more specifically alluded to. The position then maybe summarised as follows :— Loss by publicans' night licenses £ 345 0 0 Loss by publicans' licenses 760 0 0 Loss by bottle licenses ... 160 0 0 Total of £1265 0 0 Less allowed in estimates 100 0 0 £1165 0 0 Estimated decreased gas supply to unlicensed houses 309 0 0 Estimated decreased gas supply by 10 o'clock license 122 0 0 Probable loss of water rates 94 0 0 525 0 0 Or a total as the result of the action | of the Licenßing Committee of ...£1690 0 0 Deficiency in surplus from Gas department 2042 7 1 £3732 7 1 EXCESS EXPENDITURE. City works 1550 0 0 Domains, &c 450 0 0 Law costs 120 0 0 Probable loss of rates which may enßue through the operation of " The Rating Act 1893 >r 250 0 0 Interim loss by reduction of price of gas for special Bupply 100 7 I Or a grand total deficit of ...£6202 7 1 It is only fair to say that Mr Fairbairn thinks it possible that the credit to the gas account may be some £700 or £800 better than I have here set it down, but supposing this should turn out to be correct, it must be sufficiently obvious that the outlook is somewhat alarming, and, much as I regret to say so, can, I think, only be met by the immediate striking of an extra sixpenny rate. This can be done without a reference to the ratepayers, under clause 144 of "The Municipal Corporations Act 1886," which gives power to strike a rate for the purpose of paying interest upon loan money at anytime. Of course it will be seen that the chief factors which have led -up to this position are, first, the large loss of £1690 in publicans' license fees ; and secondly, the unusual expenditure of £1100 in gas stoves, &c, this latter item being no ultimate loss to the corporation but simply operating in restricting the available transfer from the gas department. But for these factors the council might have struggled through the year without increasing the rates, although it would have been a narrow shave, but these items have operated with our finance like the proverbial last straw which is popularly supposed to have broken the camel's back. I believe the figures I have here quoted to be absolutely correct and the result irrefutable, but I suggest, in order that they maybe verified and some positive recommendation' made to the council, that this memorandum be remitted to the Finance Committee for its consideration. The Mayor, after reading the memorandum, said : I shall move that this be remitted to the Finance Committee, and I feel certain that no alteration worthy of the name can be made by the committee in the estimate I have placed before you. I am painfully conscious of the terrible load it will be to the citizens to have to pay during the currency of this -year another £6000. Property I know does not pay now, and to have to pay this £6000 will be a very terrible thing indeed ; but, seeing the amount is so much, I think the council will be justified in facing the situation at once. I have a scheme floating in my mind whereby, if it could be put into force shortly, this perhaps might be averted, but I have not sufficiently matured it to justify me in stating to the council what the nature of it is. In the meantime, I move — "'That the' memorandum be referred to the Finance Committee to report." Or Solomon seconded the motion, and suggested that there should be no discussion npon the memorandum at present. Cr Swan : Supposing the council agrees to levy this sixpenny rate, when can it be collected ? The Mayor : I apprehend, by the terms of the act, immediately. Cr Solomon : That is a matter to report on. The motion was then put and carried.

The Napier breakwater received some damage by this week's storm.