PETONE'S FINANCES.

Dominion, Volume 6, Issue 1724, 15 April 1913, Page 3

PETONE'S FINANCES.

SUMMARY BY MAYOR. At last evening's meeting of the Petone Borough Council tho Mayor (Mr. J. M'Ewan) 'submitted an annual report on th-u year's operations. A summary of it is as lollows: — Oil looking into the question of the "capital value" of tile borough, 1 iiud that in lUOii-7 the Government valuation of tho land and buildings malting up the .borough of Petone, stood at tlio sum of ' £1,198,a40— to-day it stands at £1,M1,852. an increase of —and that notwithstanding a reduction in some portions of tho borough of the unimproved values of tno land at tho. last Government valuation'. ■ This increase in capital valuo is due to the fact that during tho six years under review, 2(iG dwellings and 10 shops have been built, and 341 permits issutd for alterations and additions to existing buildings—the total value of which amounts to £171,321. As regards tho borough's indebtedness, on reference to the balance-sheet for 1906-7 I'find after allowing for the expenditure out of "general account" on behalf of tho unraised "wharf" and "municipal building loan No. 2," and for the accrued sinking funds and "principal repayments" for State loans, that the net "public debt" at this period stood at £84,52-1. To-day, after making similar allowances, and eliminating the sewago loan, part of which only has been raised, but very little spent, "publio debt" stands at £97,445, an increase in six years of £12,921. It may be interesting to here state that the ticcrued sinking funds and repayments of principal on account of Government and gas loans amounts to £1-1,408, and that loans amounting to-£12,500,.f0r which are now provided with a sinking fund of 1 per cent, by tho Consolidation of Loans Scheme of 1911: Although this provision makes a demand upon our revenue to the amount of £125 per annum, still I hold it: was well advised. During the period of six years ended March 31, 1913, loans have been raised amounting to £25,450. : To explain the difference'between the gross increase of the "public debt and tho net increase, I should state that the sum of £4SOI, received from Lower Hult Borough ■ Council for purchase of gas plant, has been used to reduce the capital account of the gas works. The balance is made up of accrued sinking funds, •used to reduce loans in 1911 when our consolidation scheme was completed and sinking funds in Public Trustee's hands, together with repayment on account of State loans. The borough assets amount to £85,359. In view of the fact that of tho total amount of loans raised by tho borough, tho sum. of £46,218 has been raised for drainage, street improvements, sanitation, wharf and bridges, which are liot usually -considered assets, the statement of assets must be considered as satisfactory. In addition the following lands have been vested -in the council by the Government, and arc not therefore included in the Statement of assets:—Catch-' ment area, 107 acres, - Domain; 13 acres; foreshore reserve, 9 acresi 2 roods; sanitary ' depot, 18 acres. It is not to be expected that we can put in extensive drainage systems, purchase recreation grounds, technical school sites, catchment area lands, and carry out tho varimis works undertaken without increasing rates. Leaving out tho water rate, which without any increase in tho amount of the rate will increase in volume with the increase in tho number of dwellings and the extension of tho sorvice, I find that there has been an increase in the amount levied as general rate of £1949 and the interest rates of .£162 since 190G-7. In 1906-7 wo spent £3831 Bs. lid., and in 1912-13 we spent £0050 is.-Id. An increase of £2218 12s. 5d., a sum in excess of the increased rates. When' I remind you of expenditure upon tho sea-wall, Hutt Park £75, bathing-sheds £57 55., Jackson Street extension £497 16s. lid., Park purchaso bridge site £122 17s. 3d., and other ilems of increased expenditure, it must be patent that tho ratepayers are getting full valuo for increased demands. In 1906-7 tho posi--1 tion of the gas works financially was. very unsatisfactory . To-day, however, wo can say with soino amount of, assurance that our works are in a very satisfactory position financially, and that the gas produced is-giving satisfaction. The overdraft at the cud of March 111, 1912, amoulited to , £4750 Is; lid. At the close of tho financial year it stood at -JE3SSS 12s. 2d., a reduction of £1164 9s. 9d. Tho use of money on temporary deposit has been of some (service during the years. At the present tiiiie wo'have £234 on deposit at 4 ppr cent. It may not be generally known to the public that the conlicil is_ empowered by law to receive money in this may. Ilia most important work (o be started by the new council will be the sewage 'scheme. In connection with this_ work the following points rnf|tiini stressing in view of our knowledge of the scandalous scamping of the drainage works done by contract in 1897-8:—(1) That (lie work should bo done by dav labour; (2) that the supervision should' be efficient and adequate; (3) that all materials for use should be properly tested and ' examined on receipt and of tho councillors congratulated the Mavor upon his statement and upon his work during the year, after which the ordinary business was -proceeded with.