MACKENZIE COUNTY

Timaru Herald, Volume CXXXVII, Issue 19484, 8 May 1933, Page 10

MACKENZIE COUNTY

FINANCES REVIEWED EXPLANATION OF OPERATIONS. “In placing a financial review before the ratepayers, an endeavour has been made to give simple, understandable figures of comparative value, in order that ratepayers may see for themselves the difficulties which have been successfully overcome by the Council during the past year,” said Mr F. J. Carter, chairman of the Finance Committee of the Mackenzie County Council, in the course of a statement to Friday’s meeting. Mr Carter pointed out that a comparison had been drawn as follows: Average Re-

“In other words,” continued Mr Carter, “the receipts last year showed a reduction of over £IO,OOO on those received in 1928-29-30.” Out of the £4163 of rates received last year, the Concil had to pay £2515 to the Hospital and Harbour Boards. That meant that out of every £1 paid by the ratepayer, 12/3 went in Hospital and Harbour Board levies. During the past three years, the Council had been compelled to pay £2650 more to the Hospital and Harbour Boards, than it had collected on behalf of these two bodies. Comparing the amount collected last year with the tri-year average, this meant that where 20/- was collected from a ratepayer in 1928, 1929 and 1930, only 6/9 was collected last year. To show that the county was not underrated, but that the rates were still bordering on the taxation limit, it was seen that while the amount of rates levied in 1933 showed a drop of 45 per cent, on those levied in 1930, the amount of rates collected in 1933 showed a drop of 63 per cent, on those collected in 1930. The average amount of rates outs ending during 1928-30 was under 2 per cent, while last year they amounted to 34 per cent. In 1930 the total amount of all rates and charges outstanding was £513; last year despite heavy writing off, the amount stood at £5435. The deficit of £IO,OOO had not been counter-balanced by increased receipts from the Main Highways Board. In 1930, the amount received from the Highways Board was approximately £4OOO. Last year, despite an increase of 9 per cent, in the length of highways, and the increased reconstruction work from Tekapo to Pukaki, the amount received was £5300. It was to be remembered that the general subsidy to all counties had been increased from a £2 for £1 basis to a £3 for £1 basis. The average credit balance during the years 1928-30 was £6324, while at March 31st last the credit was £6338. “An explanation of county balances might also be of help to ratepayers," remarked Mr Carter, who pointed out that at the close of the financial year, all counties endeavoured to end with what was termed a “credit balance.” This was altogether different from the credit balance with which a commercial firm ended its year. With a commercial undertaking this usually represented profits on the year’s working, but with a county this so-called balance might even result after severe losses. Mackenzie County ended last year with a credit “balance” of £63.38. This was made up of:— Power Board debentures from sale of Fairlie Light Plant (this sum could not be touched for county work), £1400; war bonds (from sale of Tekapo Hotel and Burke’s Pass office) £6OO (this under Statute Law could be used only at a later date for the purchase of fresh property); war bond (a bequest for upkeep of the Ross Grave) £SO; Gonville Town Board debentures (similar to war bonds), £600: invested with Perpetual Trustees, Limited), £25 (Gillingham bequest for libray prize for school); cash in P. 0.5.8. (interest on £I4OO Power Board debentures; could be used only in Fairlie township), £283/14/9; cash in P. 0.5.8. (balance of loan for Rollesbv Valley telephone construction), £29 13/-; cash in bank (less unpresented cheques), £3515/5/10; cash in hand £134/15/3; total working cash balance £3650/1/1. On April 1, accounts due and met at the April meeting amounted to £1194/9/7, leaving a balance of £2455/11/6.

On May 1, accounts due and met at the May meeting amounted to £1950 leaving approximately £SOO to carry on for the year until the rates started to come in. in February of the following year. All other receipts for the first five months of the year, April to August inclusive, amounted to approximately £2OO per month, and the payments to £IBOO per month. Towards the end of July the first quarter of the Highways money was due. but as Parliament did not pass authority until after that date, it was usually towards the end of the year before the Government subsidies were received. In March each year all counties endeavoured to obtain all the monies outstanding, and the Government departments endeavoured to pay ail subsidies due. with the result that the receipts during March ran into between £3OOO and £4OOO, while the previous monthly averages were only as many hundreds. On April 1. 1932. the county had a working balance of £SBOO. and the Council budgeted to relieve the ratepayers of £2OOO during the year by reducing this working balance to £3BOO by April 1. 1933. The actual balance was £3650. Following were the balances at the commencement of each month last year:— Credit. Debit

Mr Carter said that after Mav. the county operated on bank overdraft for the remainder of the financial year. It would be understood that the £2OOO of accumulated balances which was used up to relieve ratepayers last year would not be available again this year and rates would have to be struck to cover this deficiency. It will be seen that the county was operating on a bare working balance and the calls for increased expenditure and new works when the annual “balance” was announced. could not. unfortunately, be put into effect. The Finance Committee felt that it had faithfully accounted for all monies received and had obtained the best possible value for all monies expended during the year. The Committee trusted that their work during the past year under the enormous handicaps outlined would receive the full approbation of all thinking ratepayers.

1928-30 1933 duction £ £ £ Rates collected . 11290 4163 7127 Rate subsidy received .. 1797 600 1197 Govt. Grants .. 1085 — 1085 Land Fund “fourths” received 742 50 692 Reserve rents received 535 396 139 15449 5209 10240

April 5801 — May 1413 — July 52 — August — 17?8 September — 174° October — 2177 November — 3910 December — 4157 January — 1574 February, March . 77a April 3650 —