HIGH COSTS, FLOOD DAMAGE

Hawke's Bay Herald-Tribune, Issue 110, 26 May 1937, Page 6

HIGH COSTS, FLOOD DAMAGE

Chairman Urges Need of a Reserve Fund BIGGER LEVIES THIS YEAR Exfcensive expenditure on repairing cyclonic storm damage; the Increased cost of the new office "buildings "because of increases in the costs of laboor and materials impfovements in the standard of interior office fittings; and the general Increase in wages and the price of anaterials hrought ahout by ^ recent legislation are stated hy the chairman of the Hawke's Bay County Council, Mr P. B. Logan, to he the causas of a falling-hacls of $5,290 in the connty's fnnds dnring the past year. Tn Ma anmial Tepori to the council, presented at tMs morning 's meeting, Mr Logan says that, although $he year was commenced with a credit balance of £1,312, it finished with a deMt "balance of £3,978. No reimbursement has yet heen made for the storm damage. During the yeaT it had hecome apparent that the foregoing factors mustinevitably xeenlt in a financial decline, commepted Mr Logan, and that only one course "was open — to postpone the tar-sealing programme which had been included in the estimates on the ehance that assistance would be forthcoming in the. shape of flood-damage subsidy. Even this had not been suffieientto enable the council to keep within the law, and* it had hecome necessary to apply fgor an overdraf t loan on account of fleod damage. The necessary permission had beeh granted, and^the couneil was enabled to "keep on side. ' ' "During the yeaTS pridr to the slump tMs council had a credit balance of approxhmately £30,000,"' he added. "When the price of wool fell and the earthquake caused considerable damage, m very substantial reduction was made in the county rates, wMch was naturally reflected in the figuxes of the suceeeding financial yeaxs, as follows:—* "Year ended March. 31, 1932. — Credit £32,378. ' • • " * 4 YeaT ended March 31, 1933. — Credit * £30,114. "Year ended March 31, 1934.— Credit £16,680. "Year ended MaTch 31, 1935.— Cxedit £12,585. ** Year ended March 31, 1936.— Credit . fl 312. ear ended March 31, 1937.— Debit £3,978. "Now that pxices of farm produce •re better," he added, "I wifeh members to consider again the establishment of a reserve fund. It proved a great boon during the depression and would have obviated the postponement of the sealing during last year, which was the canse of much ill-advised critioism from people who were not fairminded enough to acquaint themselves with. the true position. A reserve of £30,000 seems a laTgetsum; yet it represents only three mOnths of the conn- , eil's expenditure. "Another rise is expected this year in the Hospital levy, the anticip&ted levy "being in the vicinity of £18,500,. against £14,883 dnring last year — a. 26 per cent. increase. This is the highest inark yet reaclied. I regret to report that no further progress has been made in the direction of obtaining relief from this heavy burden. Including the ; levy for this year, tMs conneil has con- " tributed through rates over a period of 15 years the Sum of £203,138 out of a total levy of approrimately £346,346. "Although no offieial notification has , been xeceived as yet, therre is no doubt that the county ratepayers will have to face a further serious set back in the re-imposition of a Harbour Board rate. This was last struck for the financial year ended March 31, 1931, when the tatai amonnt which the county was called upon to pay amounted to £7,019. It would appear from the information • xeceived that the amonnt for the curTent year will be approximately £5,165, necessitating a further rate of 3/16d in the £1."