BOROUGH FINANCE

Southland Times, Issue 20499, 30 May 1928, Page 8

BOROUGH FINANCE

COMPARATIVE REPORT ACCOUNTS FOR 1927 AND 1928 A SATISFACTORY YEAR To last night’s meeting of the Borough Council the acting-Town Clerk (Mr J. E. Taylor) presented a report showing a comparison between various accounts for the year ending March 31, 1927, and March, 31, 1928. The report was as follows: — The result of the year’s financial operations as disclosed by the statement of accounts may be considered satisfactory. The estimates as adopted for 1927-28 anticipated a total revenue from all sources of £242,912, which, with £32,827 credit balances brought forward, would total £275,739 on the receipt side. Expenditure was estimated at £254,660, leaving a nett estimated credit balance at March 31, 1928, ot £21,079. The actual result of the year’s operation shows a total revenue of £259,449, a total expenditure of £259,768, leaving a nett credit balance of £30,627. These figures exclude certain accounts which are operated within the district fund, but do not affect the rates or other revenue The nett cash balance at credit of district fund is £17,860 2/-, against £15,475 15/2 the previous year. The following are the important features of the borough accounts : GENERAL ACCOUNT. The year opened with a debit balance of £1,134 and finished with a credit balance of £3,769. The chief factors governing this Improved position are that transfers from separate accounts were considerably lower than was estimated and receipts for miscellaneous fees, motor lorries, drivers’ licenses, fines and penalties, etc., were considerably over the estimate. HARBOUR. Expenditure was estimated at £2,982, and was actually £2,900. This account includes £5OO set aside for dredging and now lies on fixed deposit. The revenue totalled £3,440 (£3,101 estimated) this increase being wholly accounted for by increased rentals from endowments. MUNICIPAL THEATRE. This department commenced the year with a debit balance of £172 and finished with a debit balance of £159. In view of the fact that £250 was set aside for interior renovations the nett result may be deemed satisfactory. ENDOWMENTS, RESERVES AND GARDENS. Expenditure totalled £4,339, against £3,962 last year and was £598 less than had been allowed for, chiefly owing to the levelling of Biggar street being paid for out of the Mayor’s fund for the relief of unemployment. QUEEN’S PARK.. Expenditure was estimated at £2,277 and was actually £2,169. Receipts were estimated at £l,BBO, and were actually £1,799. In this estimate an amount of £3OO donation from the Dominion Band was included. This, however, did not come to hand until May of this year. Receipts from hay, etc., were in excess of last year’s receipts by £76. CEMETERY. The year commenced with a credit balance of £278 and ended with a credit balance of £122. The factors governing the reduction of the credit balance were due to an expenditure of £79 on a new road and £6O for Returned Soldiers' Association relief work and survey. PUBLIC LIBRARY. This department had a credit balance to begin the year with of £294 and at the end of the year same was increased to £630, due to increased amounts received for rents. Expenditure was £l2O below the estimate and receipts were £420 in excess of estimate. STREET LIGHTING. Gas street lighting cost £1,140 and electricity £1,622, against £1,494 and £1,137 respectively last year. This account is in credit to the extent of £156. ABATTOIRS. This department commenced the year with a credit balance of £235. Expenditure amounted to £3,587 and receipts to £3,915. leaving a credit balance to carry forward of £563. GASWORKS.

The total expenditure estimated at £35,485 was actually £36,888. Receipts amounted to £35,520, a slight increase on last year. The result is that after providing tor loan interest sinking and renewal fund, instalments, together with a special sinking fund payment of £2,300 (in redemption of maturing debentures) the credit balance as at the beginning of the year has only been decreased by £795. Dealing with the trading account, this account is debited with the whole of the ‘amounts shown on the debit side of receipts and payments with the following exceptions: Sinking funds amounting to £4,040 and capital expenditure amounting to £1,257. These last-mentioned amounts appear in the balance-sheet as an asset. Stocks on hand go to the credit of the following accounts: manufacture, distribution and fittings. The transfer to the profit and loss account £4,569 is £1,436 better than for the year ending 1927. This, however, is largely accounted for by the fact that only £l,OOO was set aside for the renewal fund, as against £2,000 for. the year ending 1927. Referring to the profit and loss account at 31/3/22, there was an accumulated debit balance of £15,687. This has now been reduced' to £1,082 as at 31/3/28, and may be considered very satisfactory, taking everything into consideration. POWER SUPPLY. Expenditure on power supply was £25,104, against £22,967 last year. The units sold were: 1927-28 1926-27. Tramways .. .. 610,994 613,930 Electricity .. .. 4,481,866 3,962,990 5,092,860 4,576,920 Increase .. .. 515,940 5,092,860 TRAMWAYS. Expenditure, including standing charges, was £28,890, against £29,086 for the previous year, being a decrease of £196. Receipts totalled £27,677, against £28,966 for the previous year, a decrease of £1,289. This reduces the bank balance to £531, as against £1,744 for 1927. As regards the trading account, the same standing charges are debited as are referred to in the gas accounts. The nett result of the tramways working for the year is to show a loss of £135. ELECTRICITY. The expenditure of this department, amounting to £46,509, besides providing for the usual standing charges, includes the following special payments: Sinking fund £3,000, renewal fund £5,000 and transfer to general account of £5,000. Actual receipts were £43,441, being practically £l,OOO over the estimate and an increase over last year of £2,814. The credit balance in this account now stands at £16,261. Against this, however, must be reckoned the amount to the debit of stores account approximately £14,000. The electricity trading account shows a profit of £1,678 for the year, after providing £5,000 for the renewal fund and £5,000 to the general account in relief of FateS ‘ PUBLIC WORKS. Expenditure on streets, footpaths, drains, etc., was estimated at £17,760 and was actually £17,949. The estimates in the main have been closely adhered to. Receipts estimated at £2,500 were actually £2,237; the difference between estimates

and actual receipts being caused by reduced amount received for building inspection fees. | QUARRY. -J Total expenditure for this department ( amounted to £5,726, and including debit balance brought forward, £5,920. Actual ( receipts were £5,897, resulting in a transfer ( from general account of £23 to square accounts. i SEWERAGE. . This account calls for little or no com- : ment. It may, however, be noted that the expenditure £4,604 was below that of last year by £4Bl, whilst the receipts were £359 in excess, thus increasing the credit balance of this account to £998, as against £79 the previous year. x WATERWORKS. Expenditure on this department was £10,820, being £B5l below the estimate and £879 more than last year’s expenditure. Receipts amounted to £10,920, or £486 more than the estimate. The credit to this ac count now stands at £1,337, as against £1,237 last year. COUNCILLOR MACALISTER’S REMARKS. The chairman of the Finance Committee (Councillor Macalister) briefly reviewed the items in the report. He mentioned that at the previous meeting of the council the question of his making a statement on the borough finance came up and it was decided to hold lhe matter over till the next meeting so that members could digest the accounts. In the meantime his job had virtually been done for him by the excellent report prepared by Mr Taylor. There was really not much for him to do save briefly go through the accounts. The estimates for the ensuing year had to be discussed later and they were probably more interesting and more important than the accounts unless it were from the informative point of view. It was interesting in the accounts to compare the results of the past year with previous years. Referring to the baths, which were not included in Mr Taylor’s statement as there could be no comparison with the previous year, Councillor Macalister said that he was satisfied the money had been well spent. The annual loss would be about £1,500 it the figures for the seven months were a guide. He hoped that with proper appreciation the loss would be reduced. Generally speaking, the accounts were most satisfactory and compared more than favourably with those for the preceding twelve months. The Mayor said that Councillor Macalister was to be congratulated on the lucid explanation of the accounts. The Finance Committee would have further opportunity to go into the estimates for the ensuing year and he trusted Councillor Macalister would curtail the amounts as far as was consistent with reasonable economy. At a later stage in the meeting the chairmen of the various committees discussed their respective accounts briefly.