MUNICIPAL MONEY

Pukekohe & Waiuku Times, Volume 1, Issue 23, 14 August 1912, Page 1

MUNICIPAL MONEY

THREE THOUSAND POUNDS WANTED BOROUGH COUNCIL TEMPORARILY SHORT OFFERS OF GUARANTEE

At the last meeting of the Pukekohe Borough Council the Mayor (Mr Dunn) submitted a statement showing how the water account and the bank balances (General Account and Loan Account) stood. The main difficulty is the account owing to the Wanganui Pipe Co, for which amount the company is prepared to wait for providing the Council pay iuterest, but which the Council is legally unable to do. Water Account. Contract Amount Amount Amount Paid Owing NivenandCo.— £ £ £ (Engine, plant, etc.) 1238 918 320 Crowley—(Reservoir) 1883 1506 377 Luby—(Trenches) 534 335 199 Fausett—(power house)3ss 280 75 Suggate—(engineer) 438 403 34 4448 3442 1005 Plus interest 160 Total still owing £1165 "The above plus possible extras has to be paid," said the Mayor. " Then there was the account of the Wanganui Spiral Pipe Co. The contract was £4756, of which £2OOO had been paid, leaving £2756 still owing. Bank Balances. General Account —Debit £438 8s 2d, plus unexpended balance of Mr Roulston's deposit (say L 120), plus current accounts (say L 200); total, say L 758. Loan Account—Credit LBOI (less contractors' deposits L 156, unpresented cheques Ll6, or net credit balance L 629. L Amount immediately due on completion of contracts other than Pipe Co. ... ... 1165 Less amount to Credit in Bank 629 536 Amount still due to Pipe Co 2756 General Account debit ... 758 £4050 This £4050 (said the Mayor) is the approximate amount of cash owing immediately upon the completion of contracts. In addition to the abovo there is almost certain to be liability for extras and sundries of which I have no data upon which to form an estimate. The above figures do not take into account any liabilities incurred and paid for supply of water to contractors, rent of pumps, engine, etc., and other sundries probably about £IOOO, which will make the liabilities incurred on account of water supply to date approximately as follows : £ Total amount for contracts let ... 9204 Estimated subsidy as above ... 1000 10,204 The sum of £10,204, plus first year's interest payable out of loan £6500, at 4£ per cent, interest and sinking fund, equals £292, plus bookerage of £ per cent £32 10s, amounts to £10,552. That is, less any amount that may arise from sale of pipes, pumps, etc. " In addition to the above we have yet to arrange for a supply of meters, etc., which will probably equal another £6OO to £BOO ; the interest and maintenance of these will of course be borne by the consumers. The councillors and the public alike must bear in mind that apparently we have been using the unexpended balance of the loan moneys raised for the purposes of road construction in payment of lia.

bility incurred in connection with water supply. And while this has been unavoidable if the ratepayers were to be protected for the loss, and the district for the disgrace attendant on a number of actions for damages and accounts due, (with which we have been and still are threatened), there is do gainsaying the fact that this appropriation is illegal and must be repaid to the account to which it is owing. Unless the people see us out of the difficulty we are personally liable for a refund of the amounts so appropriated. I omitted to mention that the bulk of the figures supplied are subject to other liabilities, having been incurred of which we at present have no knowledge, and, also to alterations when a complete statement of accounts of the last Town Board are presented. The Mayor, in conclusion, said the position was unsatisfactory, as the overdraft of £SOO was, or would be, £258 overdrawn. Practically what they wanted was £3,009 at once, and the best suggestion he could make was that say ten responsible residents should guarantee £3OO each, or that a greater number should guarantee £2OO each. For himself he was prepared to take his share of the risk—£3oo, or even £SOO. He had every confidence that if they gave this guarantee to prevent the town being saddled with a law-suit, and to save it from disgrace that the ratepayers would not go back on them Cr. Hamilton: Suppose the ratepayers do not support the loan to clear the guarantees ? The Mayor: Then we (meaningthe guarantors) would have to pay up—or go bankrupt. The Mayor, Crs. Hamilton, Bilkey, Berriman, Lawrie, Johns and Hart signified their willingness to subscribe a £3OO guarantee. Cr. Comrie thought they should take a woek to think over the matter. If the guarantors paid they could not recover it legally. Cr. Pollock said if thirty came in at £IOO guarantee each he would make one, but not if there were a losser number. Cr. Comrie thought there was no danger of being sued right away. He moved, That thn Pipe Company be informed that legal advice had been taken, and it had been found that the Council could not pay interest on the amount owing, to explain the whole position and await a reply. This motion was carried without dissent.