THE BOROUGH'S ACTIVITIES.

Taranaki Daily News, 24 April 1918, Page 6

THE BOROUGH'S ACTIVITIES.

I TOWN CLERK'S ANNUAL REPORT. At Monday's meeting of the Works Conjmitce of the New Plymouth Borough Council, the Town Clerk (Mr. F. T. Bcllringer) submitted his annual reports, which, as usual, covered the operations for the past year. Inter alia, he reported:— CONVERSION OF LOANS. Of the total public debt of £.*516,000 debentures to the value of £134,000 mature on the Ist October, 1922. This must be kept in mind as it will be necessary in the near future to ta! .• steps to arrange for the conversion of the above amount. It is unfortunate that sueh a large amount should mature just at this particular period as until things become normal the rate ot interest will be considerably higher than that paid in the past. There does not appear to be mueh hope of the financial market becoming normal before the time arrives to deal with this conversion loan. One bad feature in connection with the loans now falling due is that the greater proportion of them carry no sinking fund. With the other loans the sinking funds are only £ per cent, per annum, too small to be of' any material effect. Had adequate sinking funds been provided for at any rate the loans utilised for non revenue producing purposes, the total amount of the conversion loan would have been materially reduced, and a large saving in annual interest charges effected. Under the system of no sinking funds posterity is loaded with financial burdens for which it has received no material benefit. This is brought home to us when we realise that at the present moment we are paying intereset on loan moneys expended on work in Courtenay street, Gill street, Vivian, 'Powderham and Dawson streets, and for roofing the old Town Hall in the year 1880, over thirty eight years ago. This is a question which should be borne in mind when the conversion load is raised in 1922, and also when any further loans are raised by the Council. GENERAL ACCOUNT. From a casual glance at the General Account statement one might easily come to the conclusion that financially the past year has been a most satisfactory one. Looking more closely into details, however, and bearing in mind that a large number of liabilities have been incurred and works authorised but not completed, the position is anything but satisfactory. The account opened at. the beginning of the year with a debit balance of £2750 4b sd. and closed at the end of the year with a debit balance of £2900 15s sd, an increase of £244 lis. The Fire Board was indebted to the Council in the sum of £IOBO payable in sixteen annual payments of £lO5. This was for Fire Brigade Stations taken over from the Council on the constitution of the Fire Board, less payments previously made. Having sold the old central station the Fire Board commuted these sixteen annual payments by a cash payment of £1137 19s 2d. Had it not been for this unexpected receipt, the debit balance of the general account would have been increased to £1382, instead of the £244 lis mentioned above. Works authorised by the Council to be charged to the general account lmt not completed amounted to £2OOO, and in addition the Council entered into contracts for the purchase of the following plant as follows:—Electric motor bus £IBSO, electric lorry £2OOO, tar-spraycr £4OO, a total of £4250. All these have to be paid for during the ensuing year, but had the payments been made during the past year as they would have been had it not been for the present war conditions the position of the general account at the end of the year would have been, Dr. balance as shown above, £2900 15s 3d; Works'authorised, £2000; plant ordered as above, £4250; a total Dr. balance of £9,150 15s sd. Three years ago a substantial addition was made to the general rates for the purpose of reducing the debit balance, which then amounted to £5422 lfis 4d, and which at that time was considered altogether too high. Bearing this in mind, the position as disclosed by the above figures must be considered as somewhat alarming. , It will be said that in the plant purchased the Council will have valuable assets, and no doubt this is quite true. On the other hand, it should be recognised that without increasing the general rate the general account revenue is only sufficient to meet the standing charges and the general maintenance of the borough. To provide for new street works and for new enterprises and large additions to the plant out of the general account can have no other effect than to pile up financial difficulties for succeeding councils. The expenditure referred to is entirely capital expenditure, and should in my opinion be provided for by way of special loans. STREETS MAINTENANCE. One of the most difficult problems any municipality has to face is the upkeep and cleansing of its streets. Each council has its own particular difficulties. At the beginning of the year £4OOO was allocated for this work, but included in this amount was an item of £550 for work for other departments and private individuals, which would be charged to and reimbursed by them. Actually, therefore, only £8450 was available for street maintenance. The actual cost amounted to £6620 Is, being I the item £B3ll 5s 3d Bhown in the return, less £1685 4s 3d, work done for and reimbursed by other departments and accounts. Actually, therefore, the vote has been exceeded by no less a sum than £3170. The expenditure for the first five months absorbed the whole of the vote for the year. On the other hand, £I3OO was provided in the estimates for new street works, of which only £369 lis 5d was expended. It is apparent that a much higher vote for street maintenance most be allowed than for the past year. ANNUAL ESTIMATES. Usually in submitting draft estimates I have endeavored to make both ends meet, but having £6150 extraordinary expenditure to make provision for It was hopeless to attempt to do so on this occasion. Adding the present debit balance of £2900 it will be seen that unless the authority for eome of the works authorised is rescinded and the borough engineer's estimates reduced the general account at the and of March, 1319, ju&j&s * MM*) AfT'Unttr J