BOROUGH FINANCES.

King Country Chronicle, Volume VII, Issue 529, 28 December 1912, Page 5

BOROUGH FINANCES.

REPORT OP COMMITTEE,

The following report of the Legal and Finance Committee of the Te Kuiti Borough Council was submitted to the council on Monday evening last: —

Treasurer's Financial Statement.— A detailed statement showing the borough's expenditure, and also the amount of revenue receivable from rates struck for the period Ist April, 1912, to 31st March, 1913, was submitted by the borough treasurer, which statement was duly considered in conjunction with his report submitted to the council on Bth December, 1912. After going carefully into the financial position of the borough, the committee have to report a3 follows: —■

District Fund. —The amount of estimated expenditure on the General account the year ending 3Ut March, 1913, is £2030, and the approximate receipts for the same period is £2212, thus leaving a credit balanca on the year's working of £lB2. The committee wish to point out that when drafting up th 9 estimated expenditure for next year the following items, for which provision has had to be made this year, will be non recurring, viz.: —Contribution to library building, £250; office furniture and fittings, £120; repairs to King street bridge, £80; iota), £450. Thus enabliing the incoming council to strike a General rate of Id in the £, which will be found quite sufficient to meet all the financial requirements of the borough for the year 1913-14 —Id in £ on capital value £237,444: £1484.

Loan £27,275, Water, Streets, and Sewerage. —The lid rate struck to meet the interest and sinking fund charges on this loan will produce a sum of £1236 and the amount actually required for the year ending 31st March, 1913, is £IO3O, thus leaving £206 surplus towards meeting the payment of the following year's interest and sinking fund. With this surplus in hand, and an increased ratable capital value of the borough owing to the revised valuation now being made, the committee consider that the council will be enabled to reduce this rate nest year to Id in the £. The interest on this loan is 3J per cent., and the sinking fund 1£ per cent. In connection with the additional 10 p.c. on this loan which has been applied for a formal declaration has been forwarded by the New Zeaand State-guaranteed Advances Office for the Mayor's signature which has been duly executed and returned. It is anticipated that this money will be to hand some time during the month of January.

Loan £7035 Electric Light.-—The maximum rate which the council pledged itself to strike to meet the. yearly interest and sinking fund charges on this loan is 9-16 din the £, which would, upon the present capital value, produce a sum of £556. The amount actually required being only £457 a race of Jd in the £' producing £494 will be sufficient to meet all the charges in connection with this loan. This rate will require to be collected next year, and when the undertaking becomes revenue producing the rate can be reduced accordingly. The interest on this loan is 5 per cent., and the sinking fund H per cent, per annum. Loan £IBSO, Municipal Buildings and Fire Station. —The amount required to meet the annual payment of interest and sinking fund on this loan viz., 5 per cent, and 1£ per cent, respectively, is £l2O. It will not be found necessary to strike any rate upon this loan, as the rece'pts from the letting of the Municipal Hall, together with the amount of rent, viz., £75 per annum, which it is proposed that the council should pay this Loan account out of the District fund, by way of office rent, will be sufficient to meet the interest and sinking fund charges on the whole of the loan. There is at the present time a credit balance to this loan account of £643, but, as the cost of the section, viz., £776, upon which the buildings stand was, for convenience sake, paid for out of the £27,275 loan section D, the committee recommend that the council do now transfer this credit balance of £643 back to Loan account No. 2 section D, in part liquidation of the debt, and to make up the balance owing of £133 out of the District fund account upon which, a as previously stated, there is a surplus of £lB2 to work upon. The committee decided to make the following recommendations:- -

Sinking Funds. That the town clerk be instructed to write to the Public Trustee and enquire from him the exact amount of interst required by way of sinking fund to wipe off the loans of £7035 and £IBSO in years and at the same time apply for copies of the necessary deed of covenant and resolutions to be passed by the council in connection with the appointment of a commissioner of sinking funds, also to ask if it is possible for him to arrange to invest the sinking funds in our own district, and at what cost.

Engineer's Salary.—That the borough's engineer's salary in future be debited to Loan No. 2 section D. £13,000 Loan.—That his Worship the Mayor and Cr M. Jones.be authorised to make enquiries with regard to the possibility of negotiating for the flotation of the £13,000 Joan for public works duly carried this day, the intention being, if possible, to obtainthe money from the Government at lowest possible interest. Turncock.—That the services of the borough turncock be dispensed with forthwith, and that the borough foreman of works take over the turncock's duties in conjunction with his own. Charwoman.—That the charwoman s services be dispensed with, and the town clerk be instructed to make more suitable and less expensive arrangements for having the Municipal Hall, Library, and Council Chambers and Offices cleaned. By this reduction in .the sfcajff the council will save 'an ex-

nised as follows: —Water, Works, and Drainage: Cra Julian, Lever, Lusk, and Tammadge. Sanitation and Fire Prevention: The Mayor, Crs Somerville and Tammadge. Finance, Legal, and Electric Light: The Mayor, Crs Fawlasser, Jones, Somerville, and Walsh. On the motion of Crs Somerville and Tammadge the report was received.

Cr Jones said he thought the idea with respect to sinking funds was to enquire if it was possible for the Public Trustee to invest the 3ame in our own district before requesting that he should administer the same. The council concurred with this and the report was altered accordingly. With respect to the £13,000 loan the Mayor said he proposed to try the Government for the loan.

Cr Tammadge said he did not think they should tie their hands in the matter.

Cr Jones said they had every incentive to endeavour to get the money from the Government but should have discretionary power to try other sources On the motion of Cra Lusk and Somerville the words "if possible" were added to the clause. In cjnnection with the recommendation concerning the committees Cr Lusk said he thought the Legal and Finance Committee had exceeded its duties in making the recommendations.

The Mayor said that was so, but it was open to the council to accept or alter the suggestions as it thought

The committees were then considered and adopted as recommended.