OTAGO POWER BOARD

Otago Witness, Issue 4028, 26 May 1931, Page 61

OTAGO POWER BOARD

ANNUAL MEETING The annual meeting of the Otago Electric Power Board was held on Tuesday. Mr D. Boyd presided over a full attendance of members. ANNUAL REPORTS. The chairman, engineer, and the transport member (Mr W. Taine) submitted reports on the work of the year. FINANCIAL POSITION. The financial position of the board was set out at length under several headings, but the condition generally was most clearly shown in the statement headed “ Revenue Accounts of Separate Districts,” which reads as follows: — Total capital charges: Northern area £7516, southern area £12,107 16s sd, Lawrence £3lOB 19s lid, Owaka £l4OO 16s 3d;—total,. £24,133 12s 7d. Cost of power: Northern area £3956 Is 2d, southern area £7264 Ils 6d, Lawrence £555, Owaka £4oo;—total, £12,175 12s Bd. Other expenses: Wages and salaries £5633 Us 6d, general expenses £4OBB 7s, overdraft interest £1248 5s 9d, loss on trading £836 3s sd, less interest on accounts £B5 12s Bd;—total, £11,720 14s lid. This sum was divided between the districts as follows:—Northern area £3663, southern area £5BBO 14s lid, Lawrence £1603, Owaka £574. Depreciation on appliances: Northern area £365. southern area £587; —total, £952. Total expenses: Northern area £15,500 Is 2d, southern area £25,840 2s lOd, Lawrence £5266 19s lid, Owaka £2374 16s 3d;—total, £48,982 0s 2d. Total revenue: Northern area £11,928 5s lOd, southern area £18,849 6s sd, Lawrence £3562 0s 4d, Owaka £2262 3s lid; — total £36,601 16s 6d. Total losses: Northern area £3571 15s 4d, southern area £6990 16s sd, Lawrence £1704 19s 7d, Owaka £ll2 12s 4d; —total, £12,380 3s Bd. t Attached to the revenue accounts were detailed statements showing how the totals quoted were arrived at. The following commentary on the financial position ot the board was made by the retiring chairman of the Finance Committee (Mr W. B. Galloway):— It will be noted that the unexpended loan moneys in each undertaking are as follow:—Otago £4025 14s lid, Lawrence £912 Ils lOd, Owaka £1857 3s lid. The position of the Owaka account has given us some concern, for members are fully, cognisant that material and cash on hand should be expended on justifiable extensions, and so relieve this undertaking of carrying unnecessary balances. If it is found shortly that contemplated extensions are not to be guaranteed by settlers, then the only course open is to endeavour to liquidate the stocks and have tire balance of cash repaid to the moneylenders. In the Power Fund account our chief concern is to see that the overdraft limit is not exceeded. You will recognise that the matter is in the hands of the ratepayers after the board has levied the rates. Because of the stringent times more rates are outstanding than was anticipated, and consequently the limit is exceeded by £1366, or 6.7 per cent, of the statutory overdraft limit. Rating: Rates levied in the Otago, Lawrence and Owaka districts in the last year amounted to £11,964 10s Id, as against £BBOO last year. The arrears outstanding at the close of the year amounted to £2755 Us lOd, or 23 per cent, of amount levied. It will be remembered that we sought the Government’s aid not to increase the rating last year, and so relieve the position on our ratepayers. We were disappointed, but our efforts achieved relief for the ensuing two years, in that the overdraft reduction is delayed in our favour.

Comparisons with previous year: The sale of electricity has increased by £2385 (6.97 per cent.) There has been a saving on cost of power of £122. due in some measure to decreased demand on peakloading. Wages and salaries have increased as work on capital expenditure has been falling off. The main increase

in general expenses is due to expert# fees of £628, increased reticulation, maintenance, members’ fees, and bad debts. On interest there is a saving due to profit on exchange. Sinking fund and depreciation reserve charges increase because of increased capital expenditure. Increased loss on trading account of £1314 is due to writing off £952 to depreciation, and to our efforts to quit appliance stocks. Comparisons with estimates for this year: Unfortunately the estimates of sales of electricity did not come up to the experts’ expectations. The main decrease is uijder general lighting, heating, and cooking. The revenue under this heading is still the crux of our financial success, and only as it increases can there be any hope of alleviation from rating. Decreased cost of power has in some measure offset. the decreased revenue. Because of reclosing gear adjustments being delayed - longer than was allowed for, our wages and salaries’ bill has increased by £627. fhe increase of £lBl in general expenses is due to factors quoted above—viz., increases in reticulation maintenance, members’ fees, and bad debts, but these ex- ' penses were offset by decreased expenses for motor maintenance. A saving of £1355 has been made on interest due to profit on exchange and to close scrutiny of overdraft interest. Depreciation reserve. has been increased owing to the decision to pay depreciation on motors out of this fund instead of charging the actual depreciation to motor maintenance as in the past. We now follow Government regulations in this matter. In order to quit appliance stock it was further reduced by £92. The cost of the investigation was £229 more than anticipated. The increased loss on the trading account was practically offset by a decreased loss on the power account. The resulting difference of £2 in excess of estimated total loss must be considered very satisfactory in the face of the fluctuating totals that compose our income and expenditure account. ELECTION OF CHAIRMEN. Mr J. K. Simpson was elected chairman of the board for the ensuing year. Chairmen of committees were elected as follow: —Works Committee, Mr D. Boyd: Finance Committee, Mr A. E. Russell; Transport Committee, Mr W. Taine. MONTHLY MEETING The monthly meeting of the Otago Electric Power Board was held on Tuesday. The chair was occupied by Mr D. Boyd, and there were also present Messrs J. K. Simpson. H. M. Driver, A. M'Kinnon, T. A. Lowis. A. E. Russell, G. Moore, W. Taine, W. B. Galloway and the engineer (Mr J. C. Collins). The chairman referred to the absence of Mr F. Carson, who had represented Kaitangata on the board for a long time. He also extended a welcome to Mr G. Moore, who was to replace Mr Carson as Kaitangata’s. representative. On Mr Galloway’s motion, it was decided to place on record the board’s appreciation of Mr Carson’s services to the ratepayers. Several other members also spoke. FINANCE. The financial statement showed an overdraft for March of £20,384 16s 2d. April receipts, including rates for 1929-31, £609 17s 3d, debtors to goods £ll7 2s 8d and debtors to electricity £2915 14s 2d, totalled £16,742 2s Id. Payments for April, including £4OB for wages, £230 for office lighting, £203 15s for balance of experts fees, amounted to £1545 3s lid. leaving an overdraft for April of £18,287 6s. The engineer’s report was adopted.