STEADY PROGRESS MADE

Taranaki Daily News, 12 May 1934, Page 5

STEADY PROGRESS MADE

OPUNAKE POWER BOARD YEAR SATISFACTORY ANNUAL REVIEW. DETAILED REPORTS .OF OFFICERS. Steady progress in all departments during th 4 year and a marked improvement in the financial position was disclosed in the report on the year’s operations submitted by the treasurer, Mr. W. A. Sharp, at the annual meeting of the Opunake Power Board yesterday. Members expressed their satisfaction with the position, which they considered was a cause for gratification, particularly in view of the strenuous times through which the county • was passing. The continued increase in the number of consumers and the consumption, with the way in which consumers were meeting ,their obligations, ' was most encouraging. The chairman’s report also struck an optimistic note. ' i • . The total income was £12,601 and with a total expenditure of £11,040 there was a nett surplus for the year of £1561, from which had to be deducted £Bl6 refund from the excess overdraft, which was £2784. The income compared with the estimates was: Nett electricity sales, estimated £12,000, earned £12,559; rent and sundry, £6O, £42; totals, £12,060, £12,601. The gross revenue from the sale of electricity was £13,922, against £13,535, an increase of £387, but the rebates increased by £307 from £1056 last year to £1363 this year so that the net revenue showed an increase of £BO. The increase of £541 over the estimates showed that more electricity had been used, perhaps due to new consumers connected. The summary, of expenditure was; Purchase of bulk power, estimated £7OO, expended £839; generation charges, £7lO, £786; distribution charges, £l7lO, £1357; public lighting, £5O, £4B; management and general, £1460, £1455; capital charges, interest on loans, £4250 £4220; sinking fund, £1940, £2068; bad debts written off, £267; depreciation, £l5O, nil; totals, £10,970, £ll,040; repayment bank overdraft (excess), £lOOO, £816; totals, £11,970, £11,856. The cost of bulk power was up by £139, due to much more use being made of the supply from New Plymouth, but against that fuel showed a reduction of £126. The reason for the increase in other generating charges was that wages were £lOB more than estimated, and nothing was allowed for maintenance and repair charges (£97), accounting for £205 of the increase of £215 in bulk power and generation charges. , DISTRIBUTION CHARGES. Distribution charges showed a substantial reduction of £353. Wages estimated at £975 were £B4B and supplies £3OO totalled only £65. Public lighting was practically as estimated, management and general was within £5 of the estimates, bank interest was down by £3l and interest on loans by £3O, salaries were up by £3l. Sinking fund showed £2068, against £1940 in the estimate. Bad debts totalling £247 had been written off, an amount not indicated in the estimates. Depreciation reserve appropriation was estimated at £l5O but nothing had been .appropriated, for after providing for depreciation as in the past and making allowances for capital payments out of revenue and renewals ’ for the year the proportion of sinking fund payments on depreciable assets was greater than the total of £1902 to be provided. It was two years since an appropriation was made to depreciation reserve. The bank overdraft (legal limit £1764, excess £2783, total £4547). showed a highly satisfactory reduction and while the aim was to reduce the excess overdraft by £lOOO the total reduction was only £lB4 short. The reduction has been very much greater, for in last year’s balance-sheet the total was £6047, less £3600 excess, leaving the ordinary overdraft at £2447, whereas legally it should have been £2172, so that the total overdraft had been reduced by £lO9O. The capital expenditure for the year was £lBl, comprising £l5l for land purchased from the town board and £3O for meters and transformers. The total expenditure to date was £109,176. On the income side was loan indebtedness £86,700, £13,913 redemption from sinking fund and £B3Bl advanced from revenue. The balance-sheet liabilities showed that the capital account was the same as last year. The sinking fund reserve stood at £5903 with £2068 appropriated and £155 earned in interest at 3J per cent. Depreciation reserve had been increased by £9 interest. The nett revenue account was in credit £4527 but until the bank overdraft was overcome and the cash at bank was built up no use would be made of the credit. Of the assets stock in hand, £6lO, was £72 more than last year. Sundry debtors, £1733, showed a decrease of £665 on last year’s figures. Sinking fund was £5903 and depreciation fund £414, a total of £6317. The sum of £l5O was paid into the depreciation fund investment, leaving only £270 to be paid in to pay for all back years. SATISFACTORY YEAR. In conclusion the treasurer considered that his first report covered r. satisfactory year, the main points being the nett profit in the year’s workings of £1561, and the fact that the £5OO reduction of the excess overdraft had been met in addition to £316 of the £5OO that should have been provided last year. Regarding the excess overdraft, it must be realised that the total was £2783, but there were only three years to go in which

to pay it off according to the validating clause in the Act, so that a sum of nearly £lOOO was required each year from now on. The chairman and members considered the financial report was very satisfactory. In his review of the operations of the board during the past years the chairman said members would agree that a

very satisfactory result had been attained in view of the very difficult times experienced by the dairying industry, the main source of revenue. The headworks were in good order and a large amount of work had been put into the clearing of the silt from the lake and would be the means of considerably more storage capacity. More use had been made of the bulk

supply available from New Plymouth, but the cost of generation had dropped proportionately so that on the whole the cost of power and generation remained about the same. The Diesel engine had not been used so much but had been a very satisfactory standby plant. The whole of the reticulation lines of the board were in good repair. Nearly all the poles in the area had been de-sapped

and treated with tar and in the course of inspection very little fault had been found with them. Although no capital work was undertaken a number of new connections were made and there, were very few to be linked up with the board s scheme who were accessible to the present mains. Finance was kept well on the right side and the year’s operations showed

a profit of £1541, which increased the 'nett revenue account to £4527. The overdraft was down considerably. This was really the main object of the board’s operations, to have it liquidated as soon as possible. While the board had to keep costs down to a minimum it was in no way detrimental to the system and the service had never been of a higher standard.

The chairman formally moved the adoption of the report, which was seconded by Mr. A. J. Brennan and carried. A finance committee comprising the chairman, Messrs. A. J. Brennan and J. S. Tosland was set up and was authorised to go into the question of the revision of wages and salaries. The chairman was voted the same honorarium as last year,