CITY FINANCES

Dominion, Volume 14, Issue 165, 8 April 1921, Page 4

CITY FINANCES

STATE OF DISTRICT FUND EXCESS EXPENDITURE £12,000 A DIFFICULT YEAR, SAYS THE MAYOR

When credit had been given for urgent works that would in due course be covered by loau moneys, said the Mayor (Mr. J. P. Luke) in discussing last night the state of the City Council’s district fund, the council wia s "out" by only £12,000 on the past year's working under all heads (apart from electric power and lighting, which were separate from the distWct fund account).

Mr. Luke stated that twelve months ago—at March 31, 1920—there was a debit balance of £104,780, which, with temporary loans amounting to £38.210, and the loan for electric light, £25,000, made a total debit of £167.990. The position as at March 31 of the present year was that the debit balance had increased to £147,0f)0, plus temporary loans £40,900, and the loan for elktrio light £25,000, making a total debit of £212,900. The increase in the overdraft during the year was thus £44,910. At first blush, that would alarm conn, cillors. but there was an explanation, and a satisfactory one. Land purchased could account for the major portion of the extra debit on tho year. This land represented £BlOO. A good deal had. been bought at Island Bav for the making of a recreation reserve along the seashore. Then the council had spent, on housing, in excess of loan moneys, £4600. Tho fund had advanced in connection with the Orongorongo scheme £6BOO. Alterations to the offices in Mercer Street accounted for £3lOO. The balance on the Constable Street fire station and plant was £l3OO. Thore had furl lie* been advanced from the district fund for repayment of the street widening loan, the sum of £87(10. The actual excess of expenditure on ordinary working had been £12.300. He wished iihe people to understand that it was no use discussing the balance-sheet in any hostile ' spirit. The conditions with which the council had been confronted during the past year had to be considered. After the council hadbrought down its estimates and struck the rates, it had had tremendous unforeseen charges to meet, including increases of salaries in all directions and increases in the cost of materials. There had been the bonus awarded by the Court to pay. To his mind, the £12,000 of actual shortage on the working of the district .fund (or whet was called the current account) during the year wan one that councillors ought not to feel ashamed of. The council had been as conservative as possible in its finance. It would welcome criticism provided that the critics recognised the special difficulties of the times. He had shown some time ago that an amount of £130,0(11) expended on extraordinary works was recoverable as soon as the loan moneys were available. That £130.006 did not include some very important works that would rightly be chargeable to capital if one were critical in dhe examination of the matter. The amount had been increased now to £167,060, but the credits that he had already shown must be given effect to when the council rai-to its loan money, which wouM J*® council in the position it ought to have been in had th» loan money been available to carry the works out. Every act of the council could be reviewed by any man who wished to along and get the information, "here had been no infidelity to the public interest in .the conduct of any of the expenditure. In due course the works which had been carried ’out in anticipation of the actual raising of lonn money Xd be charged up to the proper aefounts. He had told the. Government that the council must obtain the saiy loan, - and charge to tbe ‘ c all the money advanced from tne district fund during the lasu eight years.