WAIROA BOROUGH FINANCE

Poverty Bay Herald, Volume LV, Issue 17236, 16 April 1930, Page 18

WAIROA BOROUGH FINANCE

MAYOR’S ANNUAL REPORT AN ILLUMINATING DOCUMENT An interesting statement showing the position ot tile Wairoa iJorough finances dining the past three years was submitted at the monthly meeting ot the, Borough Council by tlie .Mayor” .Mr 11. 1. k'stligr. The ..Mayor said in opening that lie proposed to show that i’or years the council had been steadily losmg ground, and that instead of the general rate being raised so that each year should bear its fair proportion of the increased expenditure, previous councils had increased the bank overdraft beyond their legal limit, and bad left it to the present council to raise the rates to make up the loss. In November last when the balancesheet for the year ended March 31, IS2B, was put -before the council, the finance committee reported : "The balance-sheet for the year ended March 31, 1928, was ‘tagged’ by the Audit Department on account of the council having exceeded its legal limit. The balance-sheet for the year ended March 31, 1929, is now available, and shows a still more serious position. Your committee, therefore, recommends that the Audit Department lie requested to audit the borough accounts to date at the earliest possible time, so that the council will Know exactly how it stands.” The press, unfortunately bad ommitted to publish this report, and the ratepayers were deprived of the opportunity of learning the council’s position In a subsequent, report the finance committee advised councillors that members individually were liable to a line of up to EICO for such illegal borrowing. The following tables give a general survey of the position : General Account

In view ot tiie position at March 31, 1829,” continued Mr. Father, "I have, during the year, urged tho coi.mil to keep down expenditure, liven with the utmost. economy the general account is it3so worse than last year; the bank interest is £SB more, and the hank balance is reduced by but £494—-largely the result of the >,d increase in rates i.e.essarv to pay interest on the water loan. The balance-sheet for the year ended .March 31, 1929, is just now to hand, and (lie Auditor-! Jeneral says that he ‘will he pleased to'hear a .'an early date what action the council intends taking to adjust. the various matters referred to therein.' “The matters chiefly referred to are that ‘ln the opinion of the audit oflice the outstandings on account of rent and water charges are excessive. 'The bank overdraft exceeds the limit allowed by the Local Bodies Finance Act by £4700. “Handicapped though we have been hy the financial position when we took office, the council has done a large amount of useful though not spectacular work. Amongst other things it has arranged to lease the courts to the Tennis Club, which is now a contented borlv interested ii. managing its own affairs The council secured a vote from Hie County Council which has enabled us to improve greatly the parking ground at the cemetery. Many of the large drains have been thoroughly cleaned; several footpaths have been formed, and numerous jobs carried out, which though small in themselves, have been of very great benefit to residents. The sports ground lias been improved, and the commnnitv. appreciates the council’s efforts to make Hie Maying areas attractive. "The borough roads have been deteriorating steadily for some years, and the excessively wot Summer lias intensified the mischief. The council has spent as much ns possible on metal, and has now let satisfactory contracts for the supply of all classes of metal. Large quantities of pit metal will lie used during the present year. I am bound to say, however that irrespective of who. even should he in charge of borough affairs, (he reading problem for a large borough with limited revenue must he a matter of ever-growing concern. ‘ The writer simply lrr, been a constant source of anxiety, and is so still. The whole svstem is faulty in design and instfillation. The turnips at Fraseitowu are in the wrong locality, and are not low enough for the riser to feed them satisfactorily. The pipeline from Frasertown is a low pressure one, precluding the installation of a gravitation scheme from there . The second pumping to Hie borough tank puts enormous pressure on the, mains, and causes endless breaks and ia, leu v a stage Vet any suggested alteration would involve such heavy expenditure that it is doubtful if a loan proposal would he earrie I. The original short-dated water loan of £4B.CTO falls due in February, 1931. and approximately C45.0C0 must he renewed. The prescot rate is 6 per cent, and 1 per rent, sin' ing fund, Id l.o'-d Bodies * naps Board will probably roriuiro a 3 per cent sinking fund for the renewal.

“o'l* e lat'di»ir rates wore hnr'V'd to the borough solicitor for collection. He reports that t!6T> has been paid In the eoppcjl. Judgment ‘■ummonses have been obtained for a further £367. and rliargig orders have been made on native lands for £lB3. H’ action bad not been taken a Inrep proportion of these ■i mounts would b.'i'e been lost, owing to (lie atat’dorv period within which summonses must be issued lapsing.’ The Mayor referred also to the .sanitation system demanded by the Health Department which would tic introduced this year. An endeavor also would be made to arrange for sports bodies to take over part control o* Hamilton Square, and the question of the permanent surfacing of (lie main highwnv through the borough and also of Marine Parade would receive attention. Socially, the vear Ins been of particular interest, and Mr. Esther referred to the visits of the late Governor-General, Sir Charles Fergusson, and Ministers of the Crown.

"Tn conclusion,” ,•aided the Mayor, ‘‘l would say. that though this report will not make pleasant reading, yet the facts must he stated. The council is but trustee for the ratepayers, who are entitled to a frank statement of the position. and 1 do ask them to take an interest in their borough. and to realise that when they ask for improvements and further expenditure, tliev must he prepared to pay the price, through the rates”

C s. (1. At March 31, 1927 .. dr. 10,823 0 3 1928 .. dr, 13,348 4 9 „ „ 1929 .. dr. 16,162 12 4 1930 .. dr. 16.515 12 10 Bank Balance „ ,, ,, 1927 dr. 19C8 5 8 „ 1928 ... dr 4477 16 11 „ „ 1929 .. dr. 6679 17 4 1930 .. dr. 6145 15 6 Interest on Overdraft at H.N.Z. „ 1927 177 14 6 „ „ „ 1928 411 4 0 „ „ „ 1929 •509 5 0 „ „ ,, 1930 563 0 9