BOROUGH COUNCIL

Southland Times, Issue 20206, 17 June 1927, Page 10

BOROUGH COUNCIL

OFFICIAL REPORT OF ACTIVITIES. (Continued from yesterday’s issue) The following is the text of the official report of the Borough Council for the year 1926-27 BOROUGH FINANCE. The result of the year’s financial operations, as disclosed by the statement of accounts, may be considered satisfactory. The estimates as adopted on May 25, 1926, anticipated a total revenue from all sources of £210,421, which with £40,974 credit balances brought forward would total £251,395 on the receipts side. Expenditure was estimated at £228,436, leaving a nett estimated credit balance at March 31, 1927, of £22,959. The actual result of the year’s operation shows a total revenue of £243,679; a total expenditure of £255,219, leaving a nett credit balance of £29,439. These figures do not include certain accounts which are operated within the district fund, but do not affect the rates or other revenue. The nett cash balance at the credit of the district fund was £15,475 15/2 against £27,232 10/4 the previous year. The following are the more important features of the borough accounts: GENERAL ACCOUNT. The year opened with a credit balance of £3,425 and finished with a debit balance of £1,134. This was caused by the fact that the cost of erecting the verandah round the Athenaeum building and carrying out shop alteration (£2,136) was financed by advancing the money from the general account. to be repaid in 23 years, on the amortization principle, at the rate of 8 per cent, per annum; and by a portion of the cost of the Royal visit £477 being incurred. On the other hand, some unexpected receipts came in. Notably, motor lorry license fees £968 (£375 estimated), £504 motor drivers’ fees (£3OO estimated) and £497 sale of abattoir land. The deficit on general account, however, demonstrates the wisdom of allowing a reasonable margin for contingencies when compiling the estimates. HARBOUR. Expenditure was estimated at £3,441, and was actually £3,408. It includes £5OO banked separately for dredging and that money is, of course, not spent, only set aside. The revenue totalled £3,241 (£3,325 estimated) and was leas than the previous year by £76. Jetty dues were £1,131 against £1,495 last year. The deficiency was partly made up by increased rentals from endowments and reclamation. The nett transfer from general account to square the account was £167. SANITARY DEPARTMENT. Expenditure was £3,416 (estimated £3,433) against £3,269 in 1925-26. The cost of rubbish removal £1,793 naturally increases as more houses are built, while the cost of nightsoil removal £4lB is lessened as sewerage connections are extended. The year opened with a credit balance of £521 and closed with a deficit of £lB5, which was transferred from general account. This was less by £67 than the estimate anticipated. ENDOWMENTS, RESERVES AND GARDENS. Expenditure totalled £3,962 against £3,812 last year, and was £Bl3 less than had been allowed for, chiefly owing to reduced outlay on Sandy Point Domain and to the Biggar street reserve improvements not being completed. The transfer from general account was £1,663 (estimate £2,070) against £1,584 in 1925-26. VICTORIA PARK. Expenditure was £3,416 (estimated aside towards cost of erecting a new band rotunda. Allowing for this, it exceeded the previous year by £155. Receipts increased from £1,218 in 1925-26 to £1,390 in 1926-27, being due to sale of more hay and the one-third share of the Myross Bush racecourse reserve rent which is credited every other year. CEMETERY. The year commenced with a credit balance of £470 and ended with a credit of £278. £l9B was spent on the East road frontage fence. PUBLIC LIBRARY. This department had a credit balance of £439 to begin the year with, and finished with a credit balance of £294. Expenditure totalled £3,914 against £3,657 the previous year, accounted for chiefly by extraordinary outlay on buildings. Receipts were estimated at £3,775 and actually were £3,770 against £3,728 in. 1925-26. STREET LIGHTING. Gas street lighting cost £1,494, and electric £1,137, against £1,500 and £1,154 respectively last year. ABATTOIRS. The year commenced with neither a credit nor a debit balance. Expenditure totalled £3,563 and receipts £3,798 leaving a credit balance of £235 to carry forward. GASWORKS. The total expenditure had been estimated at £33,815 and was actually £33,906 against £30,250 the previous year. Receifrts increased by £1,169, being £35,217 against £34,048 last year. Sales of gas, tar and coke all showing increases. The result is, that after paying full interest charges on loans, £1,670

into sinking fund and £2,000 into renewal fund (both funds being in the hands of the Public Trustee) the credit balance carried forward (£2,941) has been increased to £4,219 at the end of the year. The increased use of gas for cooking and heating is very desirable not only from a financial point of view but also because the by-pro-ducts, tar and coke, are urgently needed for other industries. POWER SUPPLY. Expenditure this year includes £12,483 for ten months’ supply of current from the Power Board and is, therefore, not exactly comparable with the cost of steam production in 1925-26. However, the figures can be recorded, viz., £22,967 against £18,815 last year. The .units sold were: 1926-27 1925-26 Tramways .. .. 613,930 617,299 Electricity .. .. 3,962,990 3,883,513 Total 4,576,920 4,500,812 TRAMWAYS. Expenditure (including £1,471 running expenses on the motor omnibus) totalled £29,086 against £27,293 last year, showing an increase on tramways of £322. It includes £1,121 paid into sinking fund and £1,225 into renewal fund, also full interest charges on loans. Receipts totalled £28,966 of which £1,173 came from the ’bus and £27,793 from tramways, against £27,510 last year. Credit balance £1,864 31/3/’26 was reduced to £1,744 at 31/3/’27. ELECTRICITY. Special provision was made during the year for reducing this department’s loan debt and for strengthening the reserve fund for renewals. The expenditure of £48,772 therefore included £3,929 paid into sinking fund and £lO,OOO into renewal fund. It also includes £5,000 transferred to general account in relief of rates. Actual receipts were £40,627, very close to the amount estimated viz., £40,010, and are £1,444 over last year, the figure being £39,183. The credit balance of £27,474 at the beginning of the year was thus reduced to £19,329 at March 31, 1927. PUBLIC WORKS. Expenditure on streets, footpaths, drains, etc., was estimated at £18,885 and was actually £21,082 against £13,857 in the previous year. Receipts were estimated at £2,050 and were actually £3,663. The nett transfer from general account was estimated at £16,835 and was actually £17,928 against £11,326 in 1925-26. QUARRY. Extraordinary expenditure on alterations to plant necessitated by the change over from steam to electricity, together with a largely increased output of metal, resulted in an increase over the previous year, the figures being £7,726 against £4,586. Receipts are based on a price per ton, on trucks at Greenhills, of 10/6 and totalled £7,310 against £4,596. The credit balance of £216 at 31-3/’26 was turned into a debit balance of £199 at 31/3/’27. SEWERAGE. Expenditure was less than the previous year, being £5,085 against £5,137. A rate of .750 d. produced £4,967 which with arrears collected leaves the account in credit to the extent of £79. WATERWORKS. Expenditure was as follows:

Receipts were estimated at £7,834 and were actually £8,775, the increase being due almost entirely to. the fact, curious though it may seem, that the water rate is so low. It was fixed at only half what it had been the previous year, with the result that in hundreds of cases the minimum prescribed by Statute had to be charged. This mainly accounted for the increased yield. The year commenced with a credit balance of £2,424 of which it was proposed to expend £2,000 on “contingencies.” The year closed with a credit balance of £1,237 and the contingent liability of about £l,lOO for the cost of installing the Rees Roturbo Pump ordered last December. AMALGAMATED INTEREST AND SINKING FUND CHARGES ON LOANS OTHER THAN DEPARTMENTAL. Expenditure on this account naturally increases as loans for street works and other non-productive public works are expended. The special rate levied in this connection represents 43.47 per cent of the total rates collected during 1926-27. RATES. These are levied on the unimproved value system, with the exception of the hospital rate which is levied on the annual value, arrived at as being 6 per cent of the capital value. Town valuations have not been revised since 1916. The total is less now than it was then, owing to land becoming exempted

for churches, Sunday schools, schools, etc. Thus in 1916 the unimproved value was £1,482,745, whereas in 1926 it has shrunk to £1,476,126. The following comparative statements of rates explain themselves: —

PUBLIC DEBT. I would take this opportunity to remark that out of a total outstanding public debt of £958,385, £542,775 represents capital expenditure on public works and other general purposes, while the balance £415,610 has been used in establishing public utilities which are self-supporting, viz., gasworks, tramways, electricity, abattoirs, theatre, library, harbour and quarry. Of a total interest bill of £48,279, £27,331 was paid out of rates and the balance out of departmental revenue. Annual sinking fund instalments in reduction of loans totalled £14,317, of which £5,948 was paid out of rates and £8,369 by departments. It is therefore somewhat misleading to assert that the public debt of Invercargill is nearly a million, without qualifying the statement as aforesaid, and the fact that there is an accrued sinking fund of over £140,000 should also be borne in mind. It may here be remarked that the policy adopted where new loans are raised is to provide a 1| per cent sinking fund which is sufficient to repay the loan in about 30 years. It is anticipated that debentures will be issued maturing in from 15 to 18 years and then be renewed without disturbing the accrued sinking fund. By carrying this forward as the nucleus of the redemption sinking fund, the repayment of the whole of the original loan within 30 years can be ensured. All redemption loans recently issued are provided with sinking funds which will repay them in full on due date. During the year, debentures to the value of £93,950 were sold at par, all in New Zealand, and mostly in Southland. Of this amount £48,950 was new money, the balance being raised to pay off existing loans. £63,900 carries 5| per cent and £30,050 5j per cent interest per annum. It was only during the second half of the year that money became obtainable at 5| per cent, probably due to the New Zealand Government 5| per cent loan being taken off the market and replaced by one at 5[ per cent. The average rate of interest on the whole Invercargill public debt is now £5 0/9 per centum against £4 19/6 the previous year. SPECIAL FUNDS IN SEPARATE BANK ACCOUNTS. The Council has adopted the policy of setting aside separate funds for special purposes as follows: Fire and Marine Insurance Fund: This fund was commenced in 1916 with a capital of £250, and has been credited each year with ordinary fire premiums on corporation buildings, with certain exceptions such as the Athenaeum Building and Colonial Chambers. Adding interest earned on investment and after meeting all claims, the fund now amounts to £4,145. Accident Insurance Fund: This was also inaugurated in 1916, with, a similar capital of £250, and now amounts to £6,264. Claims by Corporation employees under the Workers’ Compensation Act paid during 1926-27 amounted to £197 2/5. Feldwick Bequest: This Trust Fund of £20,000 earned £1,033 11/- which was expended on Victoria Park. Motor Omnibus Account: Two buses were provided for, £3,500 being set aside. One has been purchased Cr. balance 31/3/27 is £2,028 7/9.

Rugby Union Gift Account: (Towards completion of Public Baths). Cr. balance, 31/3/27 . . £1,558 15/Harbour Dredging Account: Cr. balance, 31/3/27 . . £2,068 2/6 Band Rotunda: Cr. balance, 31/3/27 .... £3OO Rest House for Women and Children: Cr. balance, 31/3/27 . . . £153 18/5 SPECIAL FUNDS IN HANDS OF PUBLIC TRUSTEE. Gasworks Renewal Fund:

CONCLUSION. The following reports by the heads of departments constitute a valuable record of the municipal operations during the year, and I take this opportunity to thank all of them and the staff generally for their hearty co-operation with the Town Hall organisation in carrying on the important and numerous public services controlled by the Invercargill Borough Council. I also beg leave to express appreciation of the courtesy and kindness extended to myself and the staff by his Worship the Mayor and Councillors, and trust this brief record of the events of 1926-27 may be found both useful and interesting. Yours faithfully, F. BURWELL. Town Clerk. (To be continued daily.)

Estimate ’26-27 £ ’26-27 25-26 £ £ Administration . . 672 654 625 Pumping Wages and Maintenance . . 1,800 2,371 19,259 Electricity . 4,000 4,256 3,902 Reticulation Maintenance . 400 381 402 Services and Meters 800 74S 772 Sundries .... 60 74 204 Contingencies . 2,000 8,484 7,864 New Bore . . . 1,332 Report 125 £9,732 £9,941 £7,864

’26-27 £ ’25-26 £ Arrears at beginning of year 5,445 5,612 Rates Collectable . 68,972 67,509 Discount Allowed . . . 417 537 Actually Collected .... . 68,422 66,326 Written Off 68 882 Refunded 74 63 Arrears at end of year . . 5,510 5,376 RATES FOR 1926-27. Collected Collectduring Name. Amoun-. able year. £ £ General: 3.335 U.V. . . 20,533 19,148 Special: 4.863 U.V. . . 29,755 28,354 Lighting: .465 U.V. . . . 2,863 2,728 Sewerage: .750 U.V. . . . 5,215 4,975 Water: .440 & .220 U.V. 3,068 2,885 Nightsoil: 35/- & 25/- . 325 231 Rubbish: 32/6 & 7/6 . . 1,977 1,862 Surcharge: 10 p.c. . . . 397 38 Discount: 21 per cent. . . 417 64,133 60,638 Hospital: 4.667 A.V. . . . 4,838 4,624 Power Board: 7-8d. U.V. . 5,384 5,051 Power Board Surcharge . 42 6 £74,397 £70,319 DISTRICT FUND. Actual receipts and payments may be summariesd as follows:— '26-27 ’25-26 £ £ Credit balance at beginning of year 40,979 48,216 Debit balance at beginning Actual receipts .... 243,679 227,517 Actual payments .... 255,219 216,541 Credit balances at end of year 30,946 40,979 Debit balances at end of year 1,506 — Cash in District Fund at Bank N.Z. at end of year 15,475 27,232

£ s. d. Accrued Fund, 31/3/26 £3,157 14 0 Interest 197 19 3 Instalments 2,000 0 0 Accrued Fund, 31/3/27 £5,355 13 3 Tramways and Electricity Renewal Fund £ s. d. Accrued Fund, 31/3/26 17,278 14 6 Instalments 11,225 0 0 Interest 1,039 17 6 29,543 12 0 Less refunded for renewals of plant, etc. 2,428 4 10 Accrued Fund, 31/3/27 £27,115 7 2 Sinking Funds: £ s. d. Accrued Fund, 31/3/26 112,347 3 9 Interest 5,642 11 6 Instalments 14,244 0 0 Other Receipts .... 12,114 10 0 144,348 5 3 Less Commissions: £15 15 7 Less Redemptions: £2,000 2,015 15 7 Accrued Fund, 31/3/27 £142,332 9 8