BOROUGH FINANCIAL STATEMENT.

Pukekohe & Waiuku Times, Volume 8, Issue 477, 27 May 1919, Page 2

BOROUGH FINANCIAL STATEMENT.

THE ESTIMATES* At the last meeting of the Borough Council, the Finance Committee presented the following statement, as prepared by the Treasurer (Mr F. J. Deane) " As instructed at the last meeting, your Finance Committee has met, and prepared an estimate of the receipts and expenditure for the year ending March 31st, 1919, and a copy of the estimates has already been supplied to each member of the Council. In view of the large debit balance on the General Account at March 31st last (£2,164), and the greatly increased cost of labour and material, your committee feel compolled to recommend that a general rats of ljd in the £ be struok for the coming year. Even with the increased rate, the very strictest economy must be exercised in road expenditure if the debit balance on the General Account is not to be increased at the end of the year. You will notice on the estimates submitted that it has been possible to reduce several of the special rates, notably that over the town district area which is reduced from f d to Jd, while only one has been increased—viz., ! that over the new borough area—i which has had to be raised from ; 11-24tha of a penny to Jd, owing to the new loan for the technical school site."

The estimates were as follows .• - General Account: Receipts from general rate of in the £, £2,800; license fees and building permits, £200; dog registration, -£25; Government subsidy on rates, £lB7 10s; Government subsidy on peace celebrations expenditure, £75; hire of teams and roller, £440; dr balance 31st March, 1920, £2,100 3s sd; total, £5,327 13s5d. Expenditure: Dr balance 31st March, 1919, £2,164 18s sd; salaries (clerical and foreman), £336; office expenses, £SO; printing and advertising, £80; audit and valuation fees, £ls; bank charges and interest, £125 ; fire prevention, £SO; legal expenses, £25; elections and rolls, £25; insurance, £2O; peace celebration, £l5O ; machinery acoount—wages, repairs, etc , £SO; teams account—wages, repairs, etc., £860; miscellaneous and contingencies, £200; library account, £10; sanitary account, £26 15s; upkeep and repairs general roaas, £1,500; total, £5,322 13s sd.

WATIRWORKS. Receipts, £1,070. Expenditure: pumping expenses, £'24o; maintenance £l2O ; engineer's salary, £156; office expenses, insurance, and contingencies, £144; interest on loan, £4lO. ELKCrRICiTT. Revenue, £1,235. Expenses : ilr. balance, March 31st, 1919, £l7O Mi sd; engineer's lalary, £156; powerhouse expenses, £500; maintenance, £150; office expense*, and contingencies, £l5O Cs fit!; interest on loans, £IOB. LIBRARY. Revenue, £45. Expend. : Books, £3O ; papers and magazine, £••>; insurance and lighting, £5. HOSPITAL AXD OUARtTABI.E AID. Credit balance, March 31 it, 101'.), £6 2s 21; rate of l-o:li J Id in the £, £316 2i 21. Expjntitura: £3lO 6s 6d.

STREET LIGHTING. J Receipts, £2ll 2s. Fxpenditure Lighting and maintenance of electric lights, £190; oil lamps and sundries, £lO.

SANITARY. Receipts, £309 15s. Expenditure: wages, £156 15s; team hire, £104; rent, £39 ; repairs and sundries, £lO. REVIEW A statement of the public debt showed that £53,140 had been received in loans, of which £8,675 8s had been paid, leaving a nett debt of £14,461 12s, of which sinking funds accumulated amounted to £486 15s. The Mayor, in reviewing the financial position, said there was one thing necessary that would have to be done before they could go oa for another year, and that was they would have to increase the general rate from Id to 1H in the £. l'he Town Clerk said that the Hospital and Charitab'e Aid Board rate would have io be increased from 1 -6th of a penny to 1 o h of a penny in the

£. Tho Mayor continuing said the Finance Committee could not see any other method but to increase the rate He wis the last man in the town to advocate an increased rate for the simple reasou that it hit him rather heavily as he was one of the largest ratepayers. They could go on in the same old wiy with a one penny ra'e an 1 ni ike themselves popular but tint wn not much good They wanted *o d >thdir duty to the ratepayers. Ihe reason why the Committee advocate I the increased rate was because tin coat of everything had gone up newly doable. The rate at the present time was the same as it was so.en or eight years ago. Everything had gone up in price and now they only had about two thirds of the money to spend as the balance weiu to pay the extra cost of labour ftiore was one alternalivo aud that w is to bring down loan propoials, ar.d the other alternative was raise tho overdraft to the limit. The fumn.ial stress wa« so great that he wis i raid they could go no furthe . In the face of necesMfy it would ' e a good thing to raise the rate t > 1A d in the £. By so raising the rate 'hey would have approximately £2 UK) A rate of Id would bring in the rrvenue to the extent of £1.5.00, 1! 1 would realise £19(0 while the proposed general rate would them £2330 He estimated the expon'li.ure on a rate of Ud on 'he general roads at £ 1500 the rumainder would be utilised for other purposes to maintain the affairs of the B trough, whereas if they remaiued wi ii a iate of Id, they would for the whole year only have £7OO to expend on general road work for the next 12 months. The ad iitional revenue would he thought do every-

thing pertaining to keep the road* in the Borough in good order. Last year between £ISOO and £I6OO was spent on road works and he hoped this year to be able to have about the same amount. For these reasons the Finance committee recommended that the general rate be increased for the next 12 months. After that the position may be more favourable and the Council could then consider reducing the rate. Cr. Dent said His Worship had outlined the position very well. Whilst not altogether in favour of a high rate, he thought that under the circumstances it was necessary to have tho rate risen. With a rate of only one penny they would find themselves with only £7O(V to spend for the year. The people wanted something done in the Borough and as far as he could see nothing much could be done without an increased rate. Speaking with reference to the loans, Ct Dent said even if they did raise a loan tothing could be done with the money during the next 12 months. The alternative to increase the overdraft further would not in bis opinion be advisable. They were nearly up to the limit now. The Mijor said that loan proposals for roads and a drainage scheme were* mooted by the previous Council and a report thereon was being compiled by Mr McArthur the Council's consulting engineer. Cr Hamilton supported the previous speakers and added that in view of ihe fact that some of the spc cial rates had been reduced the extra in the £l would only mean an increase of fd in a certain portion of the Borough. That is the old Town Board area. Cr Morrow : What would be the position if loan proposals were brought down, and the general rate increased. The Mayor said that loan proposals were really the better proposi tion. They could spend tho loan money on the roads. They were paying interest on an overdraft and got really nothing for it. At any rate even if loan proposals were carried the loan would be of no use this year. It would probably be next March before they could do anything with it. Cr Dent: The general rate of Id would do nothing to decrease the overdraft.

Cr Hamilton : A rate of l.Jd would only keep it where it is. The Mayor : Certainly we could not decrease it much, but probably it might be increased a little. Ci Armstrong said he would like to 9ee some stable position reg-irding reads. Tbe electric light and waterworks were on a good wicket. They derived no revenue at all from roads, but did so from the electric light and waterworks If they could only get the present Works committee to endeavour to keep down the cuirect cost, and derive some means whereby they could supply three or four yards of metal which at the present time was the cost of supplyiDg one yard He claimed that the Council should do for the borough what they would do for themselves. There was only one alternative, and that was for one and all to assist and work up the Works committee to introduce modern ideas, so as to do away with the antique method of horte and dray. Fortunately, the borough was connected with water and electric light. He thought it was up to the Works committee to consider doing away with some of the old plant it had on hand, and sink the money into a Fordson tractor. A good road had been supplied to the power house, and when the tractor was not engaged carting metal it oould be utilised for the purpose of hauling coal. It cost at the present time about is a ton to cart the coal, and he wasjeonfident by the introduction of a tractor that the cost woule be reduced to about 2s fid or 2s per ton. The work would be carried out more expeditiously, and, besides, the tractor could do all the heavy work. By purchasing a modern plant te no the work, would show in itself that the Council was out to run the cost to the borough down to bedrock. To keep running round with a horse and dray—why, if any one of the Councillors, who were keen business men with a little foresight, they would not tolerate it. Speaking with reference to the question, Cr Armstrong said that the previous Finance committee had recjmmf nded raising the rate twelve months ago At that time they were experiencing exceptionally hard times, due to the war, and no one could predict (or know) what was going to happen in the forthcoming twelve months. Now there was a different aspect, as compared with March twelve months ago. The wtr was over, and thev had every reason to expect that matters would soon be j restored to normal conditions The! people then were up against it, and n took thnn all their time to h"ld up their end of the stick ifiven'ually, said ' r Armstrong, the Council >e-(ommende-i the Finance committee not to increase the rates, but to run the cost to the borough on a bedrock basis. The Council, by purchasing another engine, had assisted the Lighting Committee to bring down the lighting- expenses, and it was up to the Council to assist the Works committee and Foreman to bring down the cost of the upkeep of roads and other matters There was no other alternative hut to increase the rates, and he asked the Works com mittee to give the suggestion favourable consideration. In connexion with loans for road works, he urged the Council to endeavour to «i-t metal as close to Pukekohe an pousiMe. The Mayor said he <jnite recognised that the electric li«ht an')

water were apparently holding theii own, and were two institutions that be kept going If they managed to extend the electric lighthroughout the borough, and succeed in getting outside districts adjacent to Pukebohe toco-operate in the dis trict scheme, they could establish a Power Board. The matter could be pushed on, and would benerit Pukekohe, but not as much as it would the outside districts It would giv» a source of revenue. He pi iuted out that he intended to take steps to

again get the local bodies to co operate in the matter. Lr Daysh said the Works committee wanted another month, and it would then have something to lay before the Council. He would not like io see the rates raised, but considered this had to be done under the present circumstances. Tb9y would endeavour to try and cut down the working expenses of the roads. The estimates were then approved, on the motion of the Mayor seconded by Cr Hamilton; and the Mayor gave notice to move at next meeting " That the general rate be increased from Id to 1 Jd in the £, besides the striking of the various special rates, i and the hospital, water, and lighting rates." lI.VANCE. The debit balance of the District Fund account was shown at£1,998 Is.