DEFICIT ON YEAR

Timaru Herald, Volume CXXXVII, Issue 19474, 26 April 1933, Page 14

DEFICIT ON YEAR

BOROUGH FINANCES. At Monday night’s meeting of the Timaru Borough Council, the chairman of the Finance Committee (Councillor G. Benstead) gave a detailed statement covering the financial position of the borough. At the outset, he said that they had had a very trying two years as regards revenue. On 31st March, 1932, there were rates outstanding amounting to £6058, and on 31st March last £8323, so they had been handicapped during the two years to the extent of £5158 more arrears than formerly. Critics of the Council would doubtless point to the fact that they commenced their term of office with a cash surplus of £4409, and ended with a cash deficit of £2472, or an apparent loss of £6BBI. It was just as well that any such possible misapprehension should be removed. In the first place, it was not good budgeting to have a surplus, and if one started with a commencing balance of some thousands of pounds, one should estimate to end the year with neither a surplus nor a deficit. They succeeded the first year practically in so doing, having a small cash balance of £4OB. They did not commence their term of office with £4409 credit balance, as £1556 had to be deducted therefrom in respect to loan money overspent, which reduced the balance to £2853, which j made the apparent loss over the two years £5325. Though the total amount of rates outstanding, £8323, was a matter for concern, yet he thought the Council was to be congratulated on collecting 90 per cent, of its rates this year. The rates outstanding did not represent loss; they would be collected in due course. In view, therefore, of the assets of £8323 rates outstanding against their deficit of £2472, they could truly claim to have ended the year more than square. Councillor Benstead went on to say that during the year, on several occasions, they incurred various amounts of expenditure for which no provision was made on the estimates. This more than offset the amount by which the borough engineer had to curtail his expenditure during the last quarter of the year. The speaker dealt with reductions in water charges, and the two reductions made in the rates, id the first year, and id last year. He said this meant a total relief to the ratepayers for the two years of £11,569. without in any way having curtailed the services of the borough.