RAETIHI

Wanganui Chronicle, Volume 75, Issue 244, 15 October 1932, Page 3

RAETIHI

BOROUGH FINANCES. SERVICES OF SURFACEMAN DISPENSED WITH. At the meeting of the Raetiln Borough Council on Wednesday night, a report on the financial position of the borough, prepared by the treasurer, after having been considered by the Finance Committee was adopted and the services of the surfaceman who has been engaged on highway board work wa dispensen with on the recommendation of the Works Committee. The. treasurer reported in detail on the situation ami the activities of the council for the half-year ended September 30. 1932. Ho stated inter alia:— Electricity Department. —The gross revenue of this department lor the half year amounted to £2.963 13s lid as against £3.100 4s lOd for the corresponding period last year, a decline of £136 10s lid, but these figures do not afford an accurate comparison in view of the amendments to the tariff scale put into operation in Juno last. Taking the cash receipts under all heads as a truer basis for comparison, it i-' found that these amounted to £2,380 4s 8d for the current six months, as against £2.632 19s 24 last year, a reduction of £252 14s 6d. To arrive at the probable decline in revenue, through falling off in thp consumption of consumers, the reduction made in the scale of charges, estimated to cost £385 for the year, must be taken into account. Allowing half this sum as the amount of decline for the six months due to reduction of charges, it would appear that loss of revenue through less consumption by users was only £6O 4s 6d for the period, and this must be considered highly satisfactory during the present period of depression. The estimates provided for a reduction in revenue of £764 for the year, and it seems probable that this amount will not be reached, much less exceeded. Turning to the expenditure, there appears to be every prospect of keeping this within the reduced limit, made necessary by the reduction of charges passed in June, provided that no large amount of unforseen expenditure becomes necessary. Capital expenditure to date is £36 Ils 3d (estimate £36 15s), renewals and replacements £2BB 13s 6d (estimate £590), repairs and maintenance £2,397 6s 4d (estimate £4,983 ss). It must be borne in mind, however, that the contingency allowance and various appropriations wore eliminated from the estimates when those were revised at the time of reducing charges, so that, in order to wipe out the debit balance of this account as March 31, 1932, and to reach the very desirable goal of a cash credit at ATarch 31, next, even further saving must be made in the limited expenditure estimated, or an increase in revenue over that estimated must be recorded. Present indications are, however, that this object is by no means unattainable. To sum up the position as far as this department is concerned, revenue has not fallen to the, extent anticipated, and expenditure is being kept within the limits imposed, so that the present situation gives no cause for anxiety. Any betterment of the estimated figures will automatically provide for the reduction of the debit balance brought forward from last year. The net ordinary revenue of the General Department amounted to £2,674 Bs. It is very difficult to forecast this revenue in these times, but it appears certain that licenses will not reach the figure set, due to only one auctioneer’s license being taken out, while on the other hand, by-laws and various other items should show an increase. Net receipts from rate at £2.132 16s 5d are fairly satisfactory, and as action is at the present time being taken against a largo number of defaulters, the amount received from arrears should be much larger within the next few months. Tn order to reach the total revenue estimated. it will be necessary to enforce collections of all items of revenue to the limit, and this is duly having attention.

Total expenditure, less re-imbur.e-ments, for the period, reached £3,431 10s lOd, and of this expenditure, only one item calls for any serious comment or action. This is as follows; — Alain Highways.—The estimates provided for a total expenditure on the three highways within the borough of £6OO. but only £172 has boon approved hv the Highways Board for this purpose, thus leaving a deficiency of £428. From this amount, £ll5. thp cost of the proposed culvert on Parapara Road can be eliminated without disturbing the estimates to any great extent, as the major cost was for materials, and by reducing the amount of work to be done by the Aforris No. 4, and further limiting thp labour spent on maintenance. it is estimated that the deficiency can bo reduced to approximately £lOO. Of the £172 expenditure authorised by the Highways Board, it is estimated that, at least £72 is required for hire of lorry, leaving only £lOO for labour and materials, and as this amount has already been nearly spent, it is obvious that any further highway -..ork must he done without the subsidy of £3 for £l. Tf expenditure is limited to £10(1 for labour and materials and £72 for hire of truck, the general estimates will not bo affected as far as cost, of highway maintenance to the council is concerned, but the seriousness of the position lies in the fact that if work on highways is practically suspended, the present surfaceman must, bo employed on general maintenance almost entirely, ami as the estimate for this expenditure was based on only a small proportion of his tinio being spent on general Tnaintenance, it is quite insufficient to carry such a burden, and would probably be exceeded by more than £lOO. After going carefully into the position, and taking into account the fact that thp contingency allowance will be absorbed by the cost of office extensions, I am reluctantly compelled to recommend that, if the council wishes to keep within its estimates. th ( > services of the highway surfaceman should be dispensed with for the balance of the current year. The saving under this proposal would be approx imal el v £lO6. and should ensure *hc balancing of this part of the council’s estimates. Tf the above recommendation is given effect, and revenue is maintained at. the amounts estinv ' ', the department. should have no difficulty in keen ing its expenditure within the limits of its income for the year ending ATarch 31 next. Councillors expressed regret at, the necessity but agred flint for th - nresont the services of A. H. Davis be dispensed with.