PAEROA’S FINANCES.

Hauraki Plains Gazette, Volume XXXIV, Issue 4555, 24 April 1923, Page 2

PAEROA’S FINANCES.

RETIRING MAYOR’S STATEMENT Improved Financial Position. Works Achieved During Term. Budding Progress.

His Worship the Mayor, Mr P. E. Brenan, prepared the following statement, read at the last Council meeting, on the work of the Borough Council for the benefit of the citizens of Paeroa, and deals with council matters attended to during the last four years:— “On the eve of my retirement from the Mayoral chair it is expedient that I should review the work of the Council in order to afford citizens generally some opportunity of becoming conversant with municipal affairs in their town and for the purpose of giving an account of by stewardship. I propose to commence my remarks from the time that I- assumed office, in May, 1919. FINANCE. “I feel sure that it is unnecessary tor me to- remind you that the allimportant question governing the actions of a local body is that of its financial position, which subject 1 will endeavour to deal with first. When the 1919 Council took office the financial position was in by no means a rosy condition, due in my opinion to the sudden stoppage of gold duty, consequent upon the closing down of the Gold Extraction Works, thereby depleting the Council’s revenue, by some £BOO per annum; and also v? the excessive cost of several large works not provided for in the estimates of the previous Council. The debit balance of the General Account stood at £3302, with further outstanding liabilities of £750, making a total of £4052, an enormous burden for a .-■mall borough such as Paeroa to shoulder, being in round figures equal to two years’ general revenue. “Realising their difficulties, the Council had perforce to enter an era of the very strictest, economy, and abandon any hope of development, work and confine their efforts generally to reduce their large overdraft and to maintenance as far as works were concerned. As a result of th? above policy, the Council confining itself to spending only an amount each year equal to their estimated revenue, the financial position has considerably improved; so much so., that at the end of the 1921-22 financial year we were one of the few local bodies i? the Dominion able to declare to the Minister of Internal Affairs on the coming into operation t f the new Local Bodies Finance Act that our antecedent liability was nil, or, in other words, our outstanding assets equalled our liabilities. This, in my opinion, is a feat that this Council has every reason tp be proud of, notwithstanding that some of our roads and footpaths have suffered accordingly.. “At the end of the present financial year the balance-sheet discloses that there is now a credit balance in th.? General Account of £489, to which should be added outstanding rales amounting to £693 less - outstanding liabilities of £483. This- balance is due to several large works, such as the i epairs to the main street footpaths, traffic bridge, printing of bylaws, etc., not being completed, and which when finished will absorb th? credit balance now eixoting. The special accounts are also in a sound condition. “The system of rating oil the unimproved value, which came into operation in 1920, cnosequent upen the ratepayers’ decision tv change from rating on the capital value, had also the effect of improving the General Account, the valuations disclosing a much increased valua‘i?n, especially of main street property,, so much so that that area is now providing at least 2s 3d of the Council’s rating revenue. LOAN PROPOSALS. “In 1920 the ratepayers by a 5 to 1 majority sanctioned the loan proposals of the Council, providing for a permanent sewerage scheme estimated to cost £42,750, reading improvements costing £11.500, and domain improvements £lOOO. So far the c'.'.ly work of those proposals put in hand is the sewerage, on which £22,000 has been spent or contracted for. The whole of this money has keen secured at. ■4'|2 Per cent., a feat which few other local bodies in New Zealand have accomplished. The position in connection with sewerage woik at present it not entirely satisfactory, but every effort has been made to obtain loan moneys quicker, but unfortunate ly without avail at the above rate of interest, and the Council considered it more advantageous to proceed slowly than go into the open market at 6 per cent.,, which in years to come would only mean the payment of heavy interest, charges without any corresponding gain, and I feel quite sure the Council’s policy of proceeding on the above lines will meet with the ratepayers’ approval. The pipe contract entered into in 1920 is still in existence, though the original saving of 1C per cent, has been reduced to 2|6 per cent. Nevertheless, the contract has been of considerable saving, thus endorsing the Council’s wisdom in contracting foi- pipes, supplies. The Council’s engineers have submitted a revised scheme for No. 4 Area which will show an estimated saving of £3500 by deleting certain areas from the scheme at present not populated, and doing away with the pumping station. The Council should proceed with the work in No. 4 area when able to raise the necessary funds. This, of course, will be a matter for the new Council, but I have no doubt that at least the Station Road area will be put in hand shortly. The State Advances Department has verbally intimated that not

less than' half of the estimated cost will be available in the present financial year. i would like to impress upon ratepayers the urgent necessity of coupling up with the constructed-, sewers, to provide a sufficient volume. to make the scheme successful, and at the same time saving themselves the present sanitary charges. WORKS. “It is to be regretted that no moneys have so far been available for road and footpath work, also domain improvements, but I agree with the Council's policy of concentrating on the sewerage, because with the financial stringency that the Dominion has been passing through, with money at, a high rate pf interest, it was impossible to provide money for the previously mentioned works without delaying the sewerage. Consequently I. admit our roads and footpaths have deteriorated, though they are not as bad as other roads in our adjoining local bodies. WATER SUPPLY. "During 1920, after some what protracted and lengthy negotiations involving a considerable loss of time on the part of some members of the Council, an agreement with the Ohinemuri County Council was reached whereby the water supply was purchased,, the borough now owning all the main reticulation and other plant within the borough, the purchase price being £l5OO, payment being spread over a period of five years, the Council supplying water at £3o> per annum based on the consumption at the date of purchase. “I look upon this purchase as a great advantage t.o the burgesses, no rate or loan being required, no increase charges for domestic purposes and with an estimated surplus in 1915 of £5OO per annum. An improvemen: and extension of the supply can confidently be looked forward to. I wish to place on record our appreciation of the fair-minded and liberal spirit in which the County’s representatives met. us in this important question. ELECTRICITY. “Our town enjoys the honour of being the first, town in the Dominion to be provided with electric light and power under a power board. The advantages of the flew system of lighting I leave to the judgment of citizens. We have at present 100 street, lights, as against 28 under gas. The cost is approximately £4OO annually, against £240 with gas, but I feel sure the convenience is well worth the extra £l6O a year. The best thanks of the community are due, in my opinion, to the Borough representative on the Power Board for his untiring efforts on behalf of Paeroa. FIRE BRIGADE. “In the Fire Brigade the. town is fortunate in possessing a body of volunteers who at all times are prepared to sacrifice themselves for the public good, and I' am pleased to say that al last a definite effort is being made to prov’de them with quarters that will enable tpe firemen to more adequately carry out their work and to enable property owners to profit by the low • est insurance rates. BUILDING PROGRESS. “Building has been retarded owing to the shortage and high price of material. These disadvantages are now passing away. During the pa "t two years 55 permits have been granted by the Council in respect to new buildings and alterations, the, estimated cost of which amounts to £15,997, and comparing this with the previous term, when 54 permits totalled £11:000’ the progress in building must be considered satisfactory. ROADS AND FOOTPATHS. “In commenting on tthe works of he borough, the maintenance of our roads and footpaths .which are practically all unformed and not in conformity with the permanent levels, much expense is entailed in maintaining the same, many of which have not I con attended to for many years, it being the desire of the Council to conserve the funds so as to clear off the debit balance, with a view of being able at a later date, when the sewerage in the more populated districts arc completed, of forming the roads and footpaths out of loan money, thus saving the district fund money for maintenance purposes. The best thanks of the Council are due to ratepayers for their forbearance in not asking for works beyond the possibilities of the Council at the present time. “I think I have referred to almost every part of the Councils’ work, which should give electors an idea of wnat has been accomplished by their Councils from 1919 to 1923. GENERAL UNDERTAKINGS. “I want to refer briefly to questions outside of the actual control of the Council. Firstly, to the proposed hospital, which is in the same position now as two yeras ago. The Hospital Board are at present awaiting th? transfer of the land and money held by the local trustees, who, I understand. are applying to the Supreme Court for the necessary legal authority. When the trustees hand over to the board their assets, the board will obtain the Department’s authority ami proceed with the works as soon as the necessary financial arrangements are made. “ It is gratifying to know that the Benevolent Fund is z still in credit, the necessity for utilising its money for assisting the needy being reduced to a minimum. The navigation of the river is a matter that is in an unsatisfactory state, the Public Works Department

having made little effort to remedy the present evil, despite frequent representations to the department. The business sections of the town should in my opinion take this ’ important matter in hand. “The Beautifying Society has continued to do good work during the past two years, their efforts on the railway reserve, for instance, qualifying the society for the continued support of all those who take an interset in their town. “It is to be regretted that ths necessary funds have not been collect-: ed to provide for the erection, of the memorial arch to commemorate the memory of our fallen soldiers. .Many, subscribers are unable. to contributeowing to their financial position, and probably the better course will be for the committee to recommend a less expensive design. “After due consideration I am retiring after four years’ service as? Mayor, confident in the knowledge, that borough affairs generally are in? a satisfactory condition, that some, amount of progress has been made, and that I have done my best. My: best, thanks are due to the members of the Council during my four years of office. I appreciate their spirit of co-operation and support. The same applies also to the staff, “The best thanks of Mrs? Btenan and myself are due to those ladies.; and gentlemen who have come for-? ward to assist at. all times with public functions, which has enabled us both to make what little success we have obtained in carrying out ourofficial duties, and I ask for my successor the same liberal support and co-operation, which I feel sure will be forthcoming, and our town will? continue under those circumstances.to make the same steady progress towards prosperity.** Cr. Edwards, the Deputy-Mayor, said he wished to congratulate the,. Mayor on the work he had done. When he had taken office the Council was in a very precarious position financially, and a sound man was needed to convert, a debit pf £4OOO into a credit of £4OO. The Mayor had. rendered a wonderful service, and he felt sure that the ratepayers would realise that his financial policy was : sound. Other works had been treated in the same manner. A pleasing feature was the fact that meetings of the Council had run smoothly and with the greatest harmony. This reflected great credit .on the Mayor aschairman. On public occasions the. Mayor had acquitted himself admirably. He had been ably assisted byMrs Brenan, who was always ready to assist the town wherever possible. On behalf of the citizens he congratulated the Mayor on the manner in which he had held his office. Cr. Marshall thanked the Mayor for his remarks, and without reservation endorsed the remarks of Cr. Edwords. The Mayor’s record was one of strenuous endeavour and no small measure of achievement. Personally, it had been a great pleasure to work with the Mayor. Due to his tact there had been no serious differences of opinion. AU the actions of the M’ayor were those of a man who was the soul of honour. He was pleased that; the Mayor had again placed himself at the service of ratepayers in the capacity of councillor. Cr. Flatt -endorsed the previous speakers’ remarks,, and said that the Mayor had taken office when few peo--ple had faith in him. He had gained the confidence of the people, and it was felt that if he had stood again re would not, have been, beaten. Cr. Vuglar also spoke, and said he endorsed the remarks of previous speakers. He had been told that the Mayor was a hard proposition, but hs had found him capable, unselfish, and devoted to his duties. Cr. Marshall would have a hard job to follow in Mr Brenan’s footsteps. Mr Brenan briefly thanked members for their remarks, and said he would still continue to serve the town.