THE CITY FINANCES

Dominion, Volume 14, Issue 255, 22 July 1921, Page 6

THE CITY FINANCES

CHARGE OF OVER-SPENDING EXPLANATIONS MADE A discussion on finance was opened at tho City Council meeting last night by Councillor T. Forsyth, who claimed tlijt the council in the first three months of the current financial year had been guilty of over-spending. Councillor Forsyth said that the council in the first three months of the current financial year bad exceeded the estimates by over <£12,600 (that was. if an average per quarter was taken). He said that the street works estimate was <£61,000 for the year, and that in three months the council had spent £2B.ooo—nearly 50 per cent, of the whole. One could, he stated, go "right down tho list" and show that in practically 90 per cent, of the items the council had over-spent considerably. The old council had - been blamed for allowing the finances to get out of hand by spending more than its income. The estimate for the motor workshops was £57G9; in three months £4OOO, all but £l5, had been spent. How wks the council going to get on during the next nine months? The reserves estimate was £19.000. The council had already spent £6 , ' > 9' 1 The office wages and expenses estimate. was £6500; £3300, or more than 50 per cent., had been expended in one q Tll°Mnyor (Mr. R. A. Wright. M.P.) said that nil the points raised by Councillor Forsyth had been considered by the Finance Committee. and brought under the notice of all chairmen of committees. As Councillor Forsyth said, the council had expended more than the proper proportion in the last three months. A councillor: Question! Air Wright: "There is no question about it.” The Reserves Committee the Mavor continued, had exceeded the proper proportion of expenditure by £l3OO in the first three months. It expenditure went on at the same rate, nn<i the estimate was exhausted before the end of the year, it would mean that the whole staff would have to Ire dismissed For tho remaining nine months the various departments would have to take care to keep very much within the estimate to make no for what had been ov« r -exp“ n ded. With reference to Jlre £12.000 mentioned by Councillor rorsvth, the department had had to purchase a far macadam plant, a steam roller, and a large quantity of imported cement. ~, , ~ Councillor Forsyth: But will not the fact that you have made, those purchases out of revenue reduce the engineer’s power to carry out street works Mr. Wright: The plain feet is that the engineer needed these things, and where el=e was the money to come from? Councillor W. J. Tlremp-n said that the exnenditure for the three months was really the expenditure of five months, because the last council, being hard UP." had left certain payments to be made bv the new council. Councillor C. H. Chapman said that Councillor Forsyth was very fond of making alarmist statements. H.x (the sneaker) had taken the trouble to go through nil tire items shown in the Finance Committee’s report, and.lie had not found Councillor Forsyth’s stnfenrents warranted. There were something like 2" or 28 items on the sheet in question. Five were over-spent in the sen«e that more money had been spent in tire first three months than a throe months’ aver-, age warranted. If was rather striking, however, to note how much under-spent the council was on certa’n items. There was the estimate "Hutt Rond £3500”; of that amount only £413 had been spent. For sanitary services the estimate was £1987; £239 had be-n gnent. He thought if councillors analysed the statement they would find flint there was absolutely no warrant for the alarmist statement that tho council had over-spent. Councillor L. Mackenzie said that more work of certain kinds hnd to be carried out in tho winter than in the other seasons. Moreover, what was tire use of buying machinery nt the end. of the year P 'it was needed' at the beginning? He was sorry that matters were not looked nt in a broader way. Reasons for all tire expenditure had' been given , tho Finance Committee, and the committee hnd found the exnenditure justified. Councillor W. H. Bennett hoped that when the present council went out of office ft would go out with all its accounts square, and leave no outstanding bills to be’rrret bv tire incoming council. Councillor C. .L B. Norwood thought the council ought, to have a loan of seme kind to which if could charge capital expenditure—such as th-» sum expended upon the roller mentioned that night—that this camtai expenditure would not conre unon. fire estimates. The roller and similar purchases would be ns-d not this year only, but in succeeding years. . Tire Mayor finally explained that such expenditure as that incurred in the purchase of tire ’team rolter had been allowed for in th* estimates, so that fire city was not goi”" to Ire deprived of anv stree.t works. Tire evnend ; tiiTO was allowed for in fht making of tho total estimate, £6l fWI-