THE MUNICIPAL FINANCES.

Taranaki Daily News, Volume LIII, Issue 15, 11 October 1910, Page 8

THE MUNICIPAL FINANCES.

NEED FOR CAUTIOUS EXPENDITURE

The half-yearly comparison of estimated and actual expenditure was before the Borough Council last night, and was referred to by the Mayor. He pointed out that the Council had already spent £1324'13s 9d in labor andmetal, out i;f a total vote of £2200. As yet they had. to face the metalling of tue Devon road to the Henui bridge, the metalling of St. Aubyn street, and new work in forming and metalling th«s new piece of Clemow road—this latter having been rendered necessary by the erosion of the road by the river, and not having been taken into consideration when the estimates were framed. The sundries account so fair showed an expenditure of £l7B 10s 6d, whilst only £IOO had been provided. This 'large drain had been due to the expenses (£3O) incurred in presenting the local Bill re the Racecourse Reserve, and to the fact that an account had been received and paid for live years' rent on certain education reserves leased by the Council. The Gill street loan was overspent. The amount borrowed had beei £5{»U. O.f this £3801) had l>ecn paid lor property for the new street, leaving on.;> £ I'2','j for the bridge, etc. But .egal expenses, including the taking of the poll, had amounted to £125. Then they let a contract for a full-width bridge, costing £1125, with the result that the loan was £55 short. On top of that the Council had to form ! and metal the new roadway, which would cost another £3OO. The Powder* ham street culvert and filling and metalling would cost £97 more than had been provided by loan. So the Council could see the necessity for "going slow," in the face of this Heavy expenditure. A sum of £4OO had been voted for coa--1 crete kerbing and channelling. Of this £BO odd hid been spent, and it would be advisable, he thought, not to expend the remainder. The position was complicated by the recent decision to institute a reserve fund for the electric light account. Was this to take effect his year? He was of opinion that at tin. start of the year it had not been anticipated that the electric light department's earnings should •■ be set aside fo» this specific purpose, but rather the intention had been to pay them into the general account. Cr. Dockrill could not see how the earnings could be appropriated for *• sinking fund this year, seeing that tb«y had been taken into account as receipt* when the estimates were framedCr. Watkins moved that the resolution to set aside a reserve fund in the electric light department be not carried into effect this year. Cr. Browne, chairman of the Electric Lighting Committee, strongly objected to the proposal to pay the department's earnings into general revenue, on the grounds that if this were done it would effectually prevent the necessary extensions being made this year. Cr. Wilson pointed out that the electric light earnings had been excluded when the schedule of estimates bad been made, up, and. the Cowl. when J * passed the resolution to set up that re> serve fund had fulty intended it tq take ; effect this year. The pr6posal to 3 t°Ke this electric light money and spend it on the streets showed how much their estimates were "out." The whole trouble was due to the Powderham street and Gill street works, for which the engineer's estimates 'had worked out so very wide of the mark. The councillors had taken great credit to privately, if not openly—for having prodded an electric light sinking fund which should honestly have been set up four years ago. And why should they now borrow this money to cover up their deficiencies and the mistakes of their officers? The Council was bound in honesty to go on with these sinking funds, and if they were £IOOO short at the end of the year, to tell the ratepayers of it and shoulder the blame.

Cr. Clarke objected to the suggestion : to rob the electric light department, which meant that that deparment would get into a bigger hole than the Council was manoeuvring to get out of. He thought the Council would be ova* £IOOO out at the end of the year. There was nothing for the Council to do but to start that sinking fund and give the department its profits, for they needed them more than the general account did. Cr. Browne pointed out that the Council could raise 10 per cent, on the amount of the loans. Cr. Gilbert said that the Council had leained that engineers could not alway* correctly estimate the cost of work, and it bore out his repeated contention that the true estimate was the contractor's price. He believed the public would fully appreciate the benefit accruing from these two works, despite what might be said of the engineer. Ha didn't place much reliance, either, in these "estimates" brought down by the Council every year, for they seemed made to be altered, and money allotted for a particular work was frequently spent in some totally different way. He understood that hundreds of pounds scheduled for expenditure in one ward had been "sneaked away" into another ward. The town clerk (appealed to) said that, unless otherwise instructed by the Council, he would institute the reserve fund in this year's accounts. The Mayor repeated his admonition to the Council to be careful. Cr. Bellringer thought the Finance Committee should go through the estimates and revise them. After some further discussion it waa decided that the Finance Committee should go fully into the matter and report to next meeting.