BOROUGH FINANCE

Bay of Plenty Beacon, Volume 2, Issue 148, 17 April 1940, Page 5

BOROUGH FINANCE

TREASURER'S REPORT ANNUAL STATEMENT OF ACCOUNTS The Borough Treasurer, Mr D. V. Saunders, presented the annual state I mcnt of accounts to the Council on Monday night. In his report, Mr 'Saunders said:—"I have pleasure in presenting herewith the Annual Statement of Accounts for the year ended March 31, 1940. In continuance of the trend of previous years buoyant revenue is an important feature disclosed and a comparison of the gross figures of 1939-40 with those of the previous year and those of ten years ago, as follows, is of considerable interest. The figures for 1928-29, 1938-39, 1939-40 are, respectively:— Receipts. General Account: £13,886, £16,746, £18,313. Electricity Department: £6387, £9516, £11,190. Total: £20,273, £26,262, £29,503. Payments. General Account: £13,£509, £16,685, £18,581. .Electricity Department: £6031, £10,908, £11,078. Total: £19,540, £27,593, £29,659. "It also is of interest to note that the total Capital Value of the Borough in 1929, £362,000 has increased to £589,000 over the period. The figures must be accepted as illuminating evidence of the growth and development of the Borough over the past decadc. To deal in some detail with the figures relating to the General Account (i.e. all\ accounts with the exception of those of the Electricity Department) these disclose a cash credit balance Aof £2261 (£2027 at March 31, 1939) after credit of a refund of £500 advanced in the previous year to the Electricity Department. Receipts from License Fees. "Rate revenues are satisfactory. Rates levied during the year totalled £8934 (excluding native and Harbour Board) of which £8558 (95.(1 per cent) was collected during the year. The total of arrears of rates outstanding at March 31 £1072 is made up of £222 crown, £220 native rates and £630 due by European ratepayers. Receipts from license fees totalled £1368 compared witlv £1100 in the previous year (£568 in the principal increase being in heavy traffic, fees. 745 drivers licenses were issued this I being a new high level for the .Borough (1929-30 449).

"The high total of £569 from "works, sales, material, etc.," is mostly refund from the Housing Department for reading work (sealing kerbing, concrete paths) at Soutar's Avenue, a non-recurring item, and being work performed during the preceding year. The decision of the Council to clarify the position respecting Workers Dwellings, making them assets of the Borough as distinct from the Electricity Department,, results in the receipts of rentals and expenditure on maintenance featuring in the General Account. Centennial Park Expenditure. "Expenditure on streets, drainage, general,, at £2260 is down £258 on the figure for the previous year, but expenditure at the Centennial Park £1418 occupied the time of the Borough Foreman and staff for a period. The total gross cost of this project was £1459, apportioned £250 to the County Council, £365 to the Government and £844 to the Council. Collections and donations for children's playing equipment at the Park now total £34 5s 9d which with Government subsidy will make £45 14s 4d available for this purpose. Relief wages paid at £890 show a reduction of £1085 on the previous year. "For a short period the Council worked on overdraft to finance its

pending the main rate collections in December. "Expenditure in the Water Supply Account exceeded receipts by £325, and in making a transfer from the Working Account occasion wast taken to place the account substantially in credit to assist in making provision upon new pumping plant, which is imminent. Main Highways Account. "Expenditure on main highways at £1196 was relatively considerable: (and this figure is apart from the cost of the considerable resealing work carried out by the Public Works Department on the GisborneWhakatanc state highway) and it must occur to -Councillors in this connection the very considerable assistance afforded by the Main Highways Board. The balance in the Main Highways Account is fully covered by subsidy payments which! are due from the Main Highways Board* "The cost of removal of the dwelling from the head works amounted to £668 of which £600 was borrowed under a special loan authority and the balance paid from General Account Funds. Reasonably substantial credit balances are maintained in the Plant Working Account and the Conversion Loan Interest Account. "Principal totalling £2397 was re--paid on Conversion Loan Account the balance of principal remaining owing at March 31, being reduced to £87,807 being on General Account £53,276 and on Electricity Account £34*531. Electricity Matters. "Sales of electricity to sundry coii sumers totalled £9592 (£8474 1938-39) an increase of 13.2 per cent. In the main expenditure groups £1472 was paid out' on maintenance (£lsll in the previous year) £3523 including. £489 from loan) on Capital worksr (£4525) and £2045 for power purchased (£IOO4 for 8 months). NVi loan moneys yet have been raised [but the obtaining of legal authority ! to borrow, with the consequent ease upon the legal limit of expenditure in the account, has released the strain of the "Legal Limit" which was felt acutely some 12 months ago. The electricity Working Account! [opened with a cash debit balance of £235 and closed with a cash de-» bit balance of £134. A recovery of the account from its financial ailments should be experienced during the ensuing year. With the closing down of the headworks plant the balance sheet figures relating ta headworks assets and main transmission line are largely fictitious and consideration will require to be given to the question of writing oft this loss within the limits of the resources of the account."