WORK OF COUNTY COUNCIL

Southland Times, Issue 23210, 27 May 1937, Page 9

WORK OF COUNTY COUNCIL

Close Of Financial Year ADDRESS BY RETIRING CHAIRMAN A survey of the work of the Southland County Council during the past financial year was made by the retiring chairman, Cr F. F. Trapski in an address at the annual meeting yesterday. The total revenue of the council last year was £129,465 and the total expenditure was £135,686, he stated. Cr Trapski’s address, which was presented in the form of an annual report, stated:

The county clerk and the county engineer have furnished their reports to the council, and members have already received copies. These reports give an indication of the work handled by the respective departments. The county clerk, in his report, gives an indication of the volume of business handled by the council. The total revenue last year was £129,465, and the total, expenditure was £135,686. These figures are a slight reduction on last year’s totals, but this is accounted for by the fact that for this year the council has not been associated with any of the Government’s schemes for the relief of the unemployed. This council in March 1936 relinquished all control of labour under the No. 5 and No. 11 relief schemes.

At the close : of the financial year on March 31 the amount standing to the council’s credit with the Bank of New Zealand was £16,026, against £22,247 at the same date last year. As an offset to the credit on March 31 the council had contract liabilities of £7112; unpaid accounts and wages due and payable for the period ended March 31, 1937, totalled in round figures £2OOO, and after taking into consideration the subsidy due and payable to the council by the Highways Board and the Public Works Department, •’ these amounts reaching a total of £3892, the net credit was approximately £11,173. Credit Balance Small When we take into consideration the volume of business handled by the council, which last year reached a total on the expenditure side of £135,686, and the fact that the majoi portion of our revenue is not received until the latter end of March in any year, I think you will agree with me that the amount of our credit balance at the end of our financial year is small for economic working. This council’s policy in past years has been to endeavour to carry on its business for the first half of the year without having recourse to an overdraft. During this year, with the small amount of credit balance available at the beginning of the year, we will be working on overdraft after the expiry of the first quarter The council’s staff has been increased, the scope of the council’s operations has been materially widened during the last two years and the daily expenditure by the council on its own staff and plant has practically. doubled in the last three years. , The total rates levied by the councilinclusive of the Hospital Board special rates —last year was £64,400, and the collection percentage was 85.67. Outstanding arrears were £24,213 and the amount collected was £Bl5O, giving a collection percentage of 33.24 The total arrears at March 31. 1937, was £24,155, so that even with the exceptionally good collection of arrears last year, we have only bettered our position by £5B in the arrears section. The total amount of Power Board rates collected was £3787 and *■ amount still to be collected stands at £12,297.

Hospital Board Rate

For the year ended March 1936, the amount of hospital board rate levied in the county was £10,484. Last year the amount levied was £15,739, and we are faced with a further increase this year of £3836. This means in round figures that the amount of hospital board levy on the county is approximately 50 per cent, of the total amount levied by the county by way ot general rate. Undoubtedly the burden of hospital board taxation is too heavy on the farming community and it is time that the whole question of hospital board taxation was dealt with by the Government and the farming community relieved of the major portion of the burden of hospital board taxation. The loan debt of the county now stands at £61,380 and the amount credited to the sinking fund is £12,594. During the past two years additional payments to the sinking fund have totalled £8346. . . The only loan authorized during last year by the Local Government Loans Board for this council was £4OO for the Waihopai river embankment, and this amount is being advanced from the general account. , We now have authority to deal with the first instalment, £25,000, of the road loan of £50,000. The first instalment falls due on May 31, 1937. The sum of £10,500 accrued sinking fund is to be used for partial repayment of the original loan and a redemption loan of £14,500 is being raised to deal with the balance of the original loan. The new loan is for a term of 10 years with interest at 3 J per cent. The value of plant owned by the council stands in the council’s records at the end of the year at £20,303, and during the past two years the council has established renewal funds for its plant and the amount of this fund is now £7203. This fund is lodged in a special account and is created purely for plant renewals, replacements and capital expenditure. The cost of operation of all our plant is a steady drain on our funds and a considerable amount of supervision is required to prevent wastage and undue losses. Government Legislation During the past twelve months legislation has been passed affecting hours of work and rates of pay and awards have come into operation so that all of this council’s employees on the outside staff are covered by awards for their particular class of work. The hours of work have been shortened from 48 hours to 40 hours a week, and the rates of pay have in all instances been considerably increased, thus adding materially to our cost of operation. The same thing applies to all of this council’s contractors; they are faced with increased costs and shorter workin® hours and the cost of contract work in this county on construction work particularly has shown an increase of at least 40 per cent, over last year’s figures. As far as this council is concerned with its own staff, the awards came into operation at the end of the calendar year, and the higher costs have only been met on the last quarter of the year. For this year it will be necessary to budget for increased costs over the whole year and it is just questionable whether the council will be in a position to employ for the full year all of its present staff and carry out its usual programme of works. The position of the collection of our rates has not improved to the extent that was anticipated, and it is just questionable even yet whether the farming community is in any better position to meet commitments than it was at this time last year.