CITY FINANCE

Otago Witness, Issue 3398, 30 April 1919, Page 22

CITY FINANCE

OPERATIONS FOR THE YEAR. At the meeting of the City Council on the 23rd a statement was presented from tho city treasurer reporting on the .financial operations of the council for the year ended March 31. TRADING DEPARTMENTS. Compared with the previous year the net results of the trading departments are as follow: — Net profit, Net profit, Department. 1317-18. 1918-19. Water £16,456 8 10 £17,935 15 10 Increas-a £1479 7s Od Gas 5,288 11 11 7,619 15 1 increase £2331 3s 2d Tramways 6,170 3 3 4,284 5 1 Decrease £1835 18s 2d Electric 13,071 17 3 15,696 12 7 Increase £2624 15s 4d Slornington tramways (loss) 122 11 11 232 5 1 Decrease £lO9 13s 2d £40,864 9 4 £45,304 3 6 Increase £4439 14s 2d. The tramways alone show a decrease, and this was entirely diuo to the influenza epidemic. If the gas, tramways, and electric departments were public companies, with share capital equivalent to the amount of their respective loans, the profits we have shown above would be increased by the amounts wo have paid for interest on debenture l !, and would be- as follows:—Gas, £11,939, equal to 11 per cent, on capital; tramways, £16,973, equal to 5.5 per cent, on capital; electric, £36,476, equal to 7.6 per cent, on oapital;—making a total of £65,388 on a capital of £892,200, or an average profit of 7.3 per cent. This is obtained after making reserves for depreciation and renewals to the extent of £43,528 in these three de partments, which is equivalent to an average of 4.9 per cent, on the amount of their loans. During the year the trading departments have expended £19,791 on extensions, have contributed £20,504 to the general account, and have set aside £10,026 for sinking funds. The net overdraft stands at practically the same figure as 32 months ago, there being a difference of only £l3. Amalgamating the figures of the four departments, including Mornington tramways, gives the following results:—The total revenue was £275,972 19s lOd, of which working expenses absorbed £131,077 2s 4d, leaving a difference of £144,895 17s 6d. The payment for interest was £54,103 4s 9d, leaving £50,792 12s 9d. The amount reserved for renewals and depreciation was £45,488 9s 3d, leaving a net profit of £45,304 3s 6d. The amount allowed during the year for half-pay to employees of the corporation who were on active service was £4910 13s 2d, and the total payments on this account to March 31 last amounted to £20,797 19s 10d.