OVERDRAFT OF £23,687

Wanganui Chronicle, Volume 80, Issue 242, 12 October 1937, Page 8

OVERDRAFT OF £23,687

BOROUGH OF GREYMOUTH MEMBERS EXPRESS ALARM GREYMOUTH, Oct. 9. Alarm at the fact that the Greymouth Borough. Council's expenditure is exceeding its receipts at the rate of £lOOO a month was expressed at the council’s meeting last night, when it was decided to call a special meeting next week to consider means of reducing the overhead expenditure.

The town clerk, Mr. F. W. Denton, said the councillors were jointly and severally liable for the bank overdraft in excess of the outstanding revenue at the end of the year. On August 31 the bank overdraft was £16,332. Mr. Carroll pointed out that the expenditure since then had brought the overdraft to £23,687, but a refund from loan money, if the sewerage and street improvements loan of £25,000 were carried, would reduce this to about £14,000. Continuing at the present rate, the overdraft would be £20,000 to £21,000 at the end of the financial year.

Mr. J. B. Kent pointed out that the position was due to the increase in the hospital levy by £l3OO and the fact that the council had not increased rates during the year. The main trouble was the council’s continuance of its policy of doing all capital works out of revenue, the result being that £BOOO had been expended in this manner in the current year. It was decided that the engineer should prepare an estimate of the amount of work done out of revenue in the past two years, and that if necessary validating legislation should be obtained to permit the overdraft to be increased.

The town clerk said to-day that the council had authority for an overdraft equalling 75 per cent, of last year’s revenue, or approximately £50,000.