CITY FINANCES

Southland Times, Issue 21073, 3 May 1930, Page 8

CITY FINANCES

i REVIEW OF THE YEAR i . . ACCOUNTS IN HEALTHY < STATE CREDIT BALANCE OF £4,000 “The accounts generally are in an excel--1 lent state,” states Councillor H. J. Macalister, chairman of the Finance Committee of the City Council, in his report on the year’s operations. “I should like to snv that the greatest credit is due to the Town Clerk for the close attention which he has given to the city’s finances during the past year. The healthy state of the accounts is largely due to his loyal and efficient co-operation with the council.” The report states: —■ The whole of the 'expenditure on street works, parks and reserves, public health, sanitation, baths and administration is carried in the general account, and it is pleasing to record that the year closed with a credit balance of £3,829. The opening balance was £lO4l.

The fees received from the licensing of vehicles engaged in heavy traffic amounted to £5,485, being £lOO more than the previous year. The amount was distributed to the various local bodies entitled to receive same; the council’s proportion was £746. After providing for the maintenance of the continuations of Main Highways within the city and transferring £1,500 towards the interest and sinking fund charges on the streets Loan a balance of £1,203 is carried forward.

The balance in the Sale of Land Trust Account stands at £lO4, being amount held for the purchase of land for recreation purposes. Harbour. Jetty dues collected were £571 less than the previous year, owing to the Oreti haying been withdrawn from trading to this port. Rents from endowments increased by £220 due to the leasing of an area in the dangerous goods area to the Texas Oil Co, Ltd. The account closed with a credit balance of £489. The fund was enriched by a transfer of £5OO from the Harbour Account. Work carried out, including the construction of a groin in the estuary above the Stead Street Bridge, accounted for £9BO. The balance in the fund is £2,786, to which should be added £3OO, being amount of unemployment relief subsidy due from the Government. Town Hail and Theatre. A very good year was experienced with the Town Hall and Victoria Hall. , The fees realized from lettings were in excess of those for the previous year despite the fact that the theatre was closed for over two months. After appropriating £250 to the Renovation Fund the" account closed with a credit of £263. The Town Hall and Theatre Renovation Fund has been built up to £772, which will be required together with the loan of £5,500 to pay for the improvements, renovations and furnishings which are now being completed. The abattoir slaughtering fees received were £154 less than the previous year. The account is in a satisfactory condition. Gasworks.

'The gasworks had a profitable year. After appropriating £1,500 to Depreciation lund and £1,820 to Sinking Fund the account shows a net profit of £1,642. Renewals to the extent of £B2B were provided out of revenue. . Last year the Gas Account was charged for the first time with £1,885, being its proportion of the interest and sinking fund charges on the Antecedent Liability Loan. The sum of £1,686 was expended on capital works. Gas sales decreased by £95 and tar sales by £674. The use of a percentage of Linton dross with the Westport coal effected a saving of £l,lOO in the cqal bill. Fittings to the. value of £2,710 were sold. The Depreciation Fund stands at £5,247 and the sinking fund for redemption of loans at £23,098. The gross loan liability on the undertaking of £92,218 and the net liability £69,120. Tramways. The tramways traffic receipts continued to steadily decline, being £1,218 less than the previous year, £2,886 less than 1927-28 and £4,418 less than 1926-27. After appropriating £1,634 to Depreciation Fund and £1,140 to Sinking Fund the account shows a net loss of £2,330. Renewals to the extent of £1,618 were provided out of revenue. A sum of £3,659 was transferred from Electricity Account to Tramways Account to square the debit balance in the account. The distribution of electricity has resulted ,in another very satisfactory year. After appropriating £1,388 to Depreciation Fund and £2,800 to Sinking Fund the account shows a net profit of £9,305. Renewals to the extent of £l,lBO were provided out of revenue. The sum of £2,500 was transferred to the general account for relief of rates and £3,659 to the Tramways Account. The sum of £1,350 was received from the Southland Electric Power Board in payment for reticulation taken over outside the city. Sales of electricity increased by £2,600. Capital expenditure out of revenue amounted to £4,150. The Tramways and Electricity Depreciation Fund stands at £32,223. The accumulated sinking funds total £69,372. The gross loan liability for Tramways and Electricity is £266,168 and the net liability £196,796. Recreational Facilities.

Receipts for the year were £B2 less than the previous year and' £lBl less than the four months that the Baths were open in the year before. A transfer of £l,lBl was required from the general account to make up the deficit on the year’s working. The expenditure on the maintenance and improvement of parks, reserves and endowments was £6,637 —£25 more than last year. The Invercargill Returned Soldiers’ Association contriljuted a sum of £4OO which was subsidized by the council on a £1 for £1 basis and expended on improving the parks and reserves. It was necessary to transfer to the reserves account £2,628 which was £416 mqje than the previous, year.

The revenue from subscriptions was £45 less than the previous year. The decrease is accounted for by the reduction which was made in the subscription fee. The sum of £248 was expended on renovating the Library and Colonial Chambers Buildings. For the first time the Library account was debited with the interest and sinking fund charges on the cost of the new site on the corner'of Esk and Deveron streets. The year ended with a credit balance of £686. Mayor’s Unemployment Fund. Subscriptions received from the public and interest earned thereon amounted to £1,639. £4OO was paid to the Southland County Council-on account of £l,OOO to be contributed by council towards the cost of reconstructing the Invercargill-Bluff main highway. The closing balance was.£B3l v and unemployment subsidies are due from the Government. Greenhills Quarry. The output of metal was 'valued at £3,474 more than that of the previous year. Extensive repairs were made to the quarry residence at a cost of £lB7. The surplus in » the account, £756, was transferred to general account to balance previous transfers from that account to the quarry account,. Waterworks and Sewerage. The account closed with a credit balance of £1,466. ..... The year closed, with a credit balance of .£3,142. Large sums are being expended 'at

the waterworks to improve the plant. The sum of £1,446 was spent in repairs and maintenance of the plant as against £484 the previous year. The sum of‘£s42 was paid on account of new pumps and £474 on account of meters to be installed on the mains. The combined effect of the increased efficiency of the pumping plant and the reduction in the charge for electrical energy in consideration of the pumping being discontinued during the peak hour has reduced the power bill from £4,400 the previous year to £2,674 last year. The major portion of the credit balance will be required to pay for new pumps, etc., ordered last year for delivery this year. The transfer from General Account to make up the deficiency in the Sanitary Account was the same as the previous year. The council is indebted to the trustees of the Invercargill Savings Bank for a donation of £lOO to be used as a fund for the benefit of the Women’s Rest Room. Insurance Funds and Deposits. Deposits held for various purposes total £2131. A claim of £2OO was paid in respect of a fire which occurred in the old shop on the section adjoining the Town Hall. Investments earned £3ll and premiums received amounted to £756. The value of the.fund increased by £865 to £6229. Accident claims totalling £434 were paid. Investments earned £414 and premiums received amounted to £993. The value of the fund increased by £973 to £8674. Properties and Loans.

The income of £1073 received from the Feldwick Bequest investments was transferred to Queen’s Park Account. Constant efforts have been made during (he year to sell or let vacant sections belonging to the Corporation. Some progress has been made in this direction, with the result that the council is now receiving additional revenue in the form of rent and rates amounting to approximately £713 i>er

annum. , . , . , , The total interest and sinking fund charges paid on loans during the year was £6B 841, which was £2500 in excess of the previous year. The sum of £39,709 was paid out of the special rate account and £29,132 was met by various working accounts The year closed with a credit balance of £3649 in the Special Rate Account. The balances on hand in the various Joans are set out hereunder.

Revenue and Expenditure.

The total revenue for the year excluding loan moneys was £311,492. The total expenditure also excluding loan moneys was .£300,670. The gross public debt was increased by £76,479 to £1,110,700. The accumulated sinking funds were increased by £22,692 to £188,012. The net. public debt is £992,688. The house sewer connections loan of £2OOO which matured during the year was paid off. Debentures to the value of £4,40(1 in the Dunsdale Water Supply Loan were paid off. There is a balance of £6OO still owing and a sinking fund sufficient to redeem that amount in 12 years has been created. Debentures to the value of £lOOO in the Tramways Loan No. 6 were paid off. During the year debentures trt the value of £121,000 were issued in respect of various loans.

Interest rates paid on same'are as under: £5,100 at 5J per cent.; £109,100 at 5} per cent.; £6,800 at 51 per cent.

Name of Loan. < Amount if Loan, c Balance on hand 31/3/30. Financing sewerage installations .. ■ • . • • 2.000 1,500 Endowments, 1919 4,000 1,714 Reclamation, No. 3 1,500 1,352 Streets supplementary 7,400 1,406 Town Hall building . . 5,000 2,526 Unemployment No. 2 .. 0,700 950 Streets formation 60,000 21,483 Electricity No. 7 .. .. 50,000 1,606 Tramway No. 5 .. .. 48,000 14,965 Oreti Bridge 11,300 468 Water reticulation 32,000 565 Special No. 3— Public Works .. .. 1,115 Reclamation . . ■ . 44,500 .940 Beautifying Reserves — 491 Lindisfarne 5,200 63 Public Works, 1919 .. 29,760 9,232 South area water and drainage 62,500 24,254 Aparima Bridge .. .. 1,300 207 Middle Ward, Sth Inv. — 332 North Ward, Sth. Inv. — 184 Total £85,263