PATEA BOROUGH

Wanganui Chronicle, Volume 74, Issue 147, 24 June 1931, Page 11

PATEA BOROUGH

REVIEW OF FINANCES SOUND POSITION REVEALED. (Own Correspondent.) PATE A, June 23. At a special meeting of the Palea Borough Council to-night, the Town Clerk (Mr L. W. Austin) submitted his first annual report on the financial position of tho borough at the end of the financial year. Those present were: The Mayor (Mr F. Ramsbottom) and Crs. C. R. Honeyfield, A. T. Christensen, F. Naismith, G. Pcddigrey, T. Bcott and C. H. Carey. The report read as follows: “The accounts have been duly audited for the past two years aud the certified copies of the balance sheets arc laid upon the table for adoption and discussion. It is not without feelings of gratification that I am able to record a healthy financial position notwithstanding the general tightness of money aud the slow manner in which most ratepayers’ obligations seem to be met in these days. “General Account.—This account opened the year with a debit balance of £BOB 13s 2d and closed with a debit of £l9 13s lOd. Revenue from general rate produced £lllO 15s 8d as against £1464 10s Id for the previous year, due, of course, to the reduction which was made in the estimates of expenditure. Licenses produced £274 7s lid which compares favourably with £279 2s 7d for 1929-30. Streets expenditure decreased from £873 14s fid to £853 6s 7d in spite of the fact that over £7O of this amount was spent in. the relief of unemployment. Tho borough reserves contributed £569 4s fid to the revenue, and the expenditure on this item accounted for £250 5s lOd (previous year £509 18s lid and £lO9 2s fid respectively). It is pleasing to be able to record a further reduction of 3d in the £ on the general rato making the current rate considerably lower than it has been for nineteen years. It may be added that the rate is back to the 1909 level. It is particularly worthy of note that the expenditure allowed for in calculating the rate required for the current year includes an amount of £504 to provide interest and sinking fund on a “legacy” of £7200 left the Council by a previous administration. This means to say that, had not this antecedent liability been bequeathed us, the rate could have been still further reduced by 9d in the £• The total receipts to general account (exclusive of transfers) were £4089 17s lOd and tho expenditure £7400 17s fid. “Cemetery.—The opening balance of this account was £lB3 Jss 9d (credit) and the account closed with a credit of £l5B 4s 4d. The loss was due to a fairly sharp increase in expenditure due to tho cost of preparing new ground as an extension to the Anglican portion which is now practically filled up.

“Town Hall. —The hall continues to be a payable undertaking, finishing the year with a credit of £573 7s lOd after contributing £650 to the relief of rates. The year was a particularly heavy one as far as expenditure was concerned owing to the installation of the talking equipment, but the expenditure has been well merited owing to the fact that a long term lease has been made possible. Had the work not been undertaken, the Council would in all probability have found itself saddled with a hall which was a continual drain upon its finances instead of one which is able to materially help in keeping down the costs of running the borough. The total expenditure was £1686 9s 9d as against £402 14s fid for the previous year. “Municipal Houses. —The municipal houses continue to increase in debit and are more of a liability than an asset. The total amount which this account is to the bad is £7B 12s fid and this is increasing at the rate of about £l2 per annum. It seems a pity that these properties cannot be realised before any further losses arc made on them. Even supposing that maintenance costs do not increase on the level they are at present, the Council will find itself saddled with a liability (on a conservative estimate) of approximately £l9OO when the loan is repaid in .1957 —as much as the houses cost to build. “Water and Drainage.-This account has still a very high debit, the amount this year being £1227 2s 2d, a reduction of £2 12s 5d over last year. Receipts exceeded the expenditure by approximate! v £5.

“Interest, Sinking Funds, etc. —The following arc the payments under the above heading for the year:— , Sinking Interest Fund. Principal. £ s. d. £ £ s. d. .1930 .. 2,727 8 4 266 616 7 6 1931 .. 2,261 10 8 226 644 5 2 “The sinking funds, with accrued interest, have now reached tho sum of £3619 7s 3d, whilst the sum of £6587 Is Id lias been paid off current loan liaI bilitics, i “Cash Balances.—lt is hoped that the trend of these balances can be maintained in the future. The actual cash i balance as at March 31. last was £lO3l 14s .Id credit. It is very satisfactory that the deficit in the general account . has been reduced in nine years from £6300 to £l9. There is no reason why this position should not be maintained ' even if not improved and only a strict I supervision of lhe finances can make, this possible. The cry of economy is . being preached from one end of the country to the other at the present time but there is such a thing as economy ending in disaster. It is sound policy , to keep service a* the highest pitch of I efficiency as economically as possible, but when the pruning knifo is used to such an extent that it lowers the standard of tho service to the ratepayers, then economy becomes extravagance. ‘‘Electricity Department.—The Electricity .Department is tho mainstay of the Council's financial position and it is gratifying to be able to record that tho sound state of the system has been maintained despite the bad year through which we have just passed. The total receipts for 1930-31 were £61.14 6s Id as against- £l3OO 7s lid in 1920-21, and. as the price per unit of current has re

mainod the same during this period, it can be seen that the supply has increased itself practically five times over since that year. When bulk supply becomes available, there should be a further sharp rise in these figures. A graph is included in the report showing the growth of tho revenue from the sale of current. “While revenue has continued to rise, operating costs have, of course, kept pace—although they are not nearly so high per unit as they have been. “The operating expenditure is responsible for an amount of 29.1 per cent, of the gross revenue whereas in 1921 they cost .137.3 per cent. —or 37.3 per cent, more than the proceeds. It is also interesting to note that, where in 1922 it cost £1383 15s 7d to produce a revenue of £1239 2s 9d. it now takes only £1265 Os 8d to produce £4337 3s 9d. which is a vastly improved position to be in. A slight increase in operating expenses for the past three years is due to a heavier burden being placed on the Diesel owing to a much lighter rainfall at tho hydro. “During the current year, tho rate payers will in all probability be asked to sanction the raising of a further loan for the development of tho supply. The Council need have no hesitation in fully recommending this proposal to the ratepayers as the expenditure will be amply repaid by increased sales of current and apparatus and. probably, by reduced charges for supplies into the bargain. “In conclusion, gentlemen. T would like to express my sincere thanks to the Council for many kindnesses shown and valuable help extended and to place on record my great appreciation of the team work of tho staff. The whole staff works at, all and any hours to give the fullest, possible service to tho public and any- extra duty required of the members is performed in the best possible spirit and always ungnidingly.”