GAIETY AND ITS BIG PRICE

Sun (Auckland), Volume 1, Issue 110, 30 July 1927, Page 1

GAIETY AND ITS BIG PRICE

SYDNEY’S COLOSSAL BURDEN SERIOUS FINANCIAL POSITION DISCLOSED FIFTY-THREE per cent, of Sydney’s total revenue from rates this financial year will be required to pay interest and sinking fund charges on the city’s debt. A report by the City Treasurer discloses a serious financial position.

By Cable•- —Press Association.—Copyright Reed. 10.20 a.m. SYDNEY, To-day. serious financial position of the City Council is revealed in a report of the City Treasurer to the Finance Committee. This shows that the present debenture debt of the citv is £14,553,121, of which £6,950,000 is chargeable to the electricity depart-, ment, and £7,602,000 to city rates. To the last-mentioned sum has to be added £3,068,000, estimated as required for the resumption of commitments and other loans amounting to £126,000, bringing the total debenture debt and commitments to £10,797,000. In addition the debt on electricity has to be augmented by contract com-

mitments approximating nearly £3,000,000, thus bringing the electricity department’s indebtedness to about £10,000,000, and making the total council debt nearly £21,000,000. The annual interest and debt sinking fund on £10,797,000, which is chargeable to city funds, amounts to £640,000, or a rate of approximately 2gd. in the £ on the present city assessments. It is estimated that 53 per cent, of the revenue from rates in the current financial year will be required for interest and sinking fund charges. The City Treasurer added that £3,194,000 will have to be borrowed to meet uncovered council commit-ments.—-A. and N.Z.