AUCKLAND CITY COUNCIL.

Press, Volume LX, Issue 11502, 7 February 1903, Page 8

AUCKLAND CITY COUNCIL.

ITS FINANCIAL POSITION.

{PEESS ASSOCIATION TEL-WHAM.) AUCKLAND, February 6. At a meeting of the City Council, the Finance Committee presented a report upon the financial position. It stated that the result of an important item of a necessary expenditure has.been that the credit balance of £3576 of two years ago is expected as on MaTch 31st, 1903, to have been converted into a debit - balance of £14,500. Now that the call for much of the expenses has passed away it ought to be expected that the estimates for the ensuing year should show a return to the normal condition, and this would be so but for some three or four items. ~ The estimates for the ensuing year, including these items, still show a deficiency of , £4600, and it is high time the Council took into its serious consideration how this expenditure is to be met and the existing debit balance reduced. Borrowing in order to pay off the accumulated debit would only be to add to the annual expenditure and permanent charge for interest, without making, any provision for the deficiency shown to exist by the estimates. The Oommittee call attention to the only two alternatives . open—Tiz., either to make the general rate sufficient to meet the calls thereupon' for the adequate and due upkeep of the city, or by retrenchment in the expenditure upon street works, and other Buch services. Should the Council entertain a proposal to borrow, say, £16,000, to pay off the debit balance, the money Tvould require to be raised »t 4J per cent., placing an increased annual. charge of £6759 on the interest account, and restricting the Council's power to overdraw in future. The estimate of receipts and expenditure for the coming year to March, 1904, showed, on the assumption that the rate continues as at present, an estimated deficiency on the general account at March 31st, 1904, of £19.120—an increase of £4620 on the Council's debit balance, which ds estimated to be £14,500 at March 31st next. Mr J. Stichbury said that the position was by no means alarming. Tlie total liabilities were about £550,000, and the assets' over £740,000, so _ T!st the Council

had really a quart*.- of a million to go and come on. Mr Parr said he was satisfied that the ratepayers would not agree to an increased rate. -He thought it would be folly in the extreme to increase the rates, and with an economical administration of the Council's funds such a step would not be necessary. Consideration of the report was adjourned.