BOROUGH FINANCE

Te Aroha News, Volume XLI, Issue 66285, 2 October 1925, Page 5

BOROUGH FINANCE

HALF-YEARLY STATEMENT HEAVY STRAIN ON GENERAL ACCOUNT The following statement of the financial position for the half-year ending September 30th was placed before the Borough Council at its meeting on Wednesday night by the Town Clerk (Mr F. W. Wild):— GENERAL ACCOUNT Receipts: General rates £695 8/10, rate subsidy £197 11/3, special inter-est-rates £69 17/2, goldfields revenue and fees and fines £lB4 3/7, license fees £291 14/6, miscellaneous £2B 10/10, subscriptions to works and goods sold £146 1/5, refunds £7ll 0/6, quarry £2062 13/3, balance 30/9/25, £6403 5/8; total, £10,790 7/-. Payments: Balance April Ist, 1925, £3553 17/1, administration £576 2/8, public works (wages, material, etc,) £2613 14/9, street lighting £231 19/10, fire prevention £162 7/6, Hospital contribution £225 5/2, bank charges £9 19/9, legal expenses £398 5/9, rest room £Bl 19/10, bridge tally expenses £57 15/9, subsidies £ll4 5/4, pound, Bridge Domain and unauthorised expenditure £B4 0/10, quarry £2045 12/9, interest paid on loans £635; total, £10,790 7/-. WATER SUPPLY

Receipts: Balance 1/4/25 £I4BB 15/10, water rates £234 16/10, arrears £67 5/2, W.C. fees £54 10/10, sundries £3; total, £1845 7/-. Payments: Salaries and wages. £25 17/3, repairs an dmaintenance £Bl 5/7, extensions £205 15/4, loan interest £SB 7/-, balance 30/9/25 £1477 1/10; total, £IB4B 7/-. ELECTRIC LIGHTING

Receipts: Balance Ist April, 1925, £3749, sale of current £2461 16/3, transferred from general account £3ll 1/10, goods/ sold and license fees £29 11/-; total, £6551 9/1. Payments: Salaries £409, repairs and maintenance £l9B 18/10, current £649 17/6.. insurances £l3 10/-, telephones £ll 11/7, stationery, printing, etc., £l9 11/9, meters £2l 12/8, distribution lines £lOl 18/8, motor truck £l7O 3/-, loan expenses £l6 15/1, ininterest on loans £217 10/-, balance 30/9/25 £4722 10/-; total, £6551 9/1. The Mayor said that one fact was obvious. They would have to be very careful during the next few months and would have to work as much as possible on the loan account. They would have ,to go slow as far as any unnecessary expenditure was concerned.

Cr. Hedge: If we are to keep the men employed we must spend money. The Mayor: That is the result of trying to keep • the men on, but for the next few months they be employed on necessary work. They would have to conserve the general account and work on the loan to recover the position by the end of Mai-ch. Cr. Hedge; Till the weather improves we must spend money out of the general account. Useful work is being done but without going behind we have not the money to do it with. The Mayor said his remarks were directed to councillors who may have works in view they would like carried out.

Cr. Kennedy: The balance sheet simply shows that we have gone to the bad £3OOO if it were not for the water and electricity, and the timehad come when they would have to consider not onlv the men employed but the ratepayers. He agreed that they should try and keep the men employed, but in doing this they could not go to the bad £2OOO to £3OOO. It was very fortunate for the Council that they had the water and electricity. The Mayor: Most of the rates would not be in till after January, and it had to be remembered that after estimating the receipts and expenditure the'-" only struck a rate for the purpose of making up any deficiency. Cr. Kennedy: A rose would smell as sweet if called., by any other name, but the. fact was that they had gone to the bad £3OOO because they had been sympathetic and had tried to keep on the emnloyees. They would have to consider whether it would not be necessary to employ a smaller staff. -- ■ The Mayor: We have not actually gone back £3OOO. The rate is struck for making up any deficiency or anticipated deficiency. So far they had exceeded their receipts, but by the end of the year the position would be changed.', it was in order that they might correct the present position that he was suggesting that they should go slow. The difference between the. revenue and expenditure at Te Aroha was so small that the rate was the lowest for any town in the Auckland province and with the rates -on the present basis they would have to be careful during the next few months. That was all there was in it. They always relied upon other accounts for general expenditure, and the good profit made out of the quarry, water and electricity enabled them to keep the general rate down. In the quarry they were running a business for the ratepayers, and he often wondered whether they annreciated that fact. It was just a question whether the profit from the quarry should go entirely to the ratepayers or whether a portion should go to the employees. Both had to be considered. In the meantime it was satisfactory to know that the accounts were in credit and that as a result the rates were being kept down to a minimum. Te Aroha was par‘tfaularly fortunate. While the people were getting all the facilities they were only naying about 50 per cent, of the rates paid in other towns. Cr. Ada Gordon: It should be made quite clear that we are not incurring expenditure and going to the bad for the sake of the employees. They had been doing so much to the streets that they giving the ratepayers more than they were paying for. The Mayor: The words “going to the bad” do not convey the right idea.

We have other accounts to draw unon. Cr. Gordon: It should be made quite clear that the ratepayers are deriving the benefit. The Town Clerk: The money has been spent in anticipation of rates. Mr Wild went on to say that there was a loan of £IOOO on the electricity falling due shortlv. and he thought that should be paid out of the electricity account. It looked bad to show a profit of £4OOO and then borrow £IOOO to pay off a loan. ,The Mayor: We would be in just the same position. Cr. Woodroffe said that before the estimates were prepared the councillors made an inspection of the borough, and a list of necessary works was prepared. Were these works proceeded with automatically? He had noticed that work in Emerson street, not included in the original scheme, had been done. The Mayor: We have to prepare estimates for the coming year and it is customary to give preference to the works named in the estimates, but we are not bound to carrv out these works. The estimates are just an indication that certain works should be carried out..

Cr. Hedge: An amount is placed on the estimates for certain works and then an additional amount, which this year was about £9OO, was allowed for contingencies. It had appeared to the Works Committee that the work in Emerson street was necessary to make a finished job to other works undertaken. The work was allowed for in the £9OO. Cr. Woodroffe said he mentioned the matter because he had received a complaint from the only person living in the street. This man said that his section had been ruined by the formation of the footpath which had been unnecessarily filled up. A mound had been raised which had spoiled his own and the adjoining section. On looking up the estimates he (Cr. Woodroffe) had found that the work had not been provided for. Cr. Sellars: If we have to do work according to the ideas of indibiduals, the ratepayers generally would soon suffer He had seen the place and was satisfied that the foreman had done the best he could There was no mound The ratepayer concerned had said he was prepared to leave the matter to the committee, and would abide by their decision. The adjoining section could not be spoiled by what was done. Cr. Kennedy said he had been spoken to by Cr. Hedge about the street, and was quite satisfied. Mr Childerhouse had, however, complained to him very bitterly and had said that it would have been better for his section had thev kept the footpath a foot lower. He had told Mr Childerhouse that it would have been difficult to do as he desired.

The Mayor read an opinion given by Mr Martin, solicitor to the Municipal Association, to the effect that works named in the estimates could not be carried out without further authority from the Council.