Finance De Luxe

Sun (Auckland), Volume I, Issue 293, 2 March 1928, Page 8

Finance De Luxe

Higgledy-Piggledy Estimates Deficit on City Street Works WITHOUT the necessity of asking the ratepayers for their sanction, the City Council last evening took the preliminary steps necessary to add £140,000 to the city s loan indebtedness.

TITERE coincidence brought five loan i’-*- proposals—amounting in all to some £157,358 8s —before the council in a heap. Of this huge sum the city ratepayers could only have their say at the ballot-box on one proposal—a mere £17,358 Bs—for the proposed Point Chevalier baths, and that was once more referred back to the Parks Committee. The others were: £30,000. —Already authorised by the Loans Board and already practically expended on abattoir extensions. This will be raised forthwith.

£12,000. —For drainage purposes, and in the same position. £71,000. —As an additional 10 per cent, on the £710,000 secondary streets loan (1924), which has been overspent.

£28,000. —As an additional 10 per cent, on the tramways loan (consolidated 1924), also overspent, and in debit to the revenue account. The city treasurer, reporting on the £710,000 loan, stated that £113,953 15s, the remainder, had to be remitted from London this month. The amount spent on streets has reached £578,192 3s 7d, and costs have amounted to £30,342 2s lOd, so that there remains a sum of £101,463 13s 7d yet to spend.

The accounts, made up to January 31, show that on certain streets, in all, £54.598 0s Id has been spent over estimates, while the set-oif is that on a number of other streets, in all. there remains a credit of £20,713 13s lid. In other words, the allocations have so far been over-spent by £33,384 6s 2d. The city treasurer carried his report a little further and pointed out that the council decided on April lc, 1025. nearly three years ago, “that instructions be given to the city engineer that in no case, in any circumstances, is expenditure to exceed, on any street, the amount allocated therefor in the schedule.” The record in the minutes further pointed out that this was essential in view of past experience, and if not observed would result in streets being excluded for lack of funds at the end of the work. Even If the street could not be completed the allocation must not be exceeded. It was also instructed that an allowance of 5 per cent, be allowed off all money allocated to meet loan expenses. DISTURBING READING “This is rather disturbing reading,” commented Cr. J. A. C. Allum to the council. “Should we not give the engineer a chance of putting his side? I’ll move that he be asked to report. I realise that whatever we do internally, however, we must complete our undertakings.” That was all the comment made before the council, with the exception of a few remarks about the baths loan, which was sent hack. The council will proceed to raise the £30,000 and £12,000 loans, and will seek permission to raise the £7,100 and £28,000 loans, without reference to the ratepayers, the first of the last two on the recommendation of the Finance Committee and the second at the request of the Tramways. TRAMWAYS POSITION The city treasurer’s budget covered the £280,000 tram loan, and he pointed out that this was now overexpended by £10,502 19s 2d, though he did not consider that portions of this amount—£4,l6s 14s 7d for Ponsonby Road feeders, and £1,117 9s 5d for Dominion Road to Page’s store tracks —were legally chargeable No money remained In capital account to meet the amount.