CITY COUNCIL FINANCE.

Otago Witness, Issue 3830, 9 August 1927, Page 62

CITY COUNCIL FINANCE.

REVIEW OF PAST YEAR, fcREVENUE EXCEEDS HALF A MILLION. In traversing the financial operations by the Dunedin City Council for the year 1926-27 the Town Clerk (Mr G. A. Lewinl in his anuand report states that the usual forms of diagram depicting the financial results of the year’s operations are again inserted, giving as they do a bird’s-eye view of the working of the several branches. “ The two diagrams showing the operations of the general account, which include the Hospital Board figures, disclose an excess of expenditure over revenue of £2300, but are subject to certain adjustments which bring the actual working of this account about square,’’ states Mr Lewin. “ The diagrams showing the results of the several trading branches in each case are worthy of careful examination. While naturally enough the final result of a profit of £65,273 looks mcagro when compared with last year’s total of £118,343, yet it is a bit better than the last normal year to March, 1925, and no one expected the abnormal figures of Exhibition year to be maintained. Indeed, wo have done well to keep ahead of tho 1925 figures, inasmuch as during tho first half-year of the period now under consideration we met a certain amount of the “ backwash ” resulting from the Exhibition, together with a rather embarrassing period of unemployment “ The whole of the departments put forth a well-sustained effort to meet the unfortunate conditions associated with tho unemployment problem, and the result is easily traceable in the figures for the year. That, fact is brought out with rather startling prominence by the following few figures of flic combined trading branches :—•

“ Thus it is shown that the income for the year ended March, 1927, is only about £15.000 less than the total for Exhibition year, yet the working expenses for the year just closed are actually £26.000 more than those for the exceptional period of the Exhibition. “In this connection the tramways shows to less advantage than either of the other branches. In 1925 its ratio of working expenses to revenue was 66.24 per cent.; in 1926 this ratio fell to 60.34 per cent.; while in 1927 it rose to 71.67 per cent. In the light of these figures it was surely gratifying to find this department showing a balance on the right side of the account, despite the fact that it was the very slender margin of £6384 or less than 4 per cent, of the total revenue.

“ The diagram showing the amalgamated figures of the whole of the trading branches is. I think, quite interesting. Tho revenue is shown as £524,347. Of this sum working expenses claimed £295,931, or 56.44 per cent. ; interest absorbed £85,173. or 16.24 per cent.; renewals and depreciations (including a sum of £25.000 ear-marked for theTown Hall construction fund), called for £77,970, or 14.87 per cent., while the balance of £65,273 remained as net surplus and represents 12.45 per cent, of the total income.

“ The average rate of interest payable on the loan capital of £l-743,500 is shown as 4.83 per cent., while the declared surplus is equal to a further 3.74 per cent, of tho loan liability. In a year marked ny a certain degree of trade depression and when a well-recognised effort was made to do all that could reasonably be expected of the several departments in meeting tho unemployment troubles, the result is such as to provide ample grounds for satisfaction.”

Per cent. Total Working to Revenue. Revenue. Revenue. 1925 ... £455,648 £231,343 53.10 1926 ... 539.731 269,833 50.00 1927 ... 524,347 295,931 56.44