BOROUGH FINANCE.

Taranaki Daily News, 20 April 1920, Page 4

BOROUGH FINANCE.

ESTIMATES FOR THIS YEAR. HEAVY DEBIT BALANCE. HIGHER RATES SUGGESTED. The following comment on the annua! draft of estimates submitted by the town clerk, was before the Borough Council last night:— "I enclose herewith draft estimates for the ensuing year. It will be noticed that these show an estimated debit balJ" c f of c £11,773 at the end of March, *921, after bringing forward last year* debit balance of £7049 15a lOd. In addition provision will require to be made for the works in Currie Street, Gill Street, and part of St. Aubvn Street which were authorised but not completed prior to the end of last March, ihe Borough engineer will submit an estimate of the cost of these works wjtmn a few days. a hea 7 debit Mance as til,us cannot of course be permitted, and it will be for the Council to say wl? balance shall be reduced: whether by an increase in the general rate or by reducing the individual votes or P er haps by a combination of both. Personally, I think it should he reduced by at least one-half during the coming y eflr . If tbe Counci , | ecMe not to reduce the individual rotes in the estimates, the end desired can only be attained by increasing the general rates and a so by appropriating for a further year the profits of the electric lighting department. AS" previously mentioned, the estimated debit, balance at slit March, 14)21, is plus the expen. (titure authorised in. Currie Street, etc. above reared to. To bring this deficit within reasonable bounds an increase in the general rate of 5Jd in the £ on the annual value should be made. This would produce approximately £2500 The tramway rate of .2d in the £ on the annual value should be discontinued this .year thus leaving the net increase J'/bd in the £.

™ uld "duce the deficit to .10-/3 The sum of £6OOO was transenTtf m* l' eC i tric light proflts at ths end of March last, and when ths ic H i ß ',' ! 1 are now awaiting the completion of the department's stocktaking are compiled, it i s probable that it wilt be possible to transfer something additional. Taking all things !"'? < j on ' ld " at ' on it appears to me that including this balance.£6ooo should be again available before the end of March, , ' If 'J 1 , 13 , provffi,correct the debit balance would be reduced to,. £3273 The position is unfortunate,'-but the Council having embarked upon a po i W7 0 f tarred streets it is essential that these tarred streets- should be kept in prober lepair, and to ensure this there appears to be no option but to increase the rates and appropriate the proflts of the trading departments. "The estimates submitted are merely draft estimates, and no doubt upon consideration some of the votes can he reduced, but the reduction will not be sullicient to appreciably affect the position as stated above. The position disclosed is such that very careful consideration will have to be given durine the ensuing year as to how the position m the following years will be met when the electric light profits will not be available and when the interest on loans will probably be increased as a result of the consolidation to be effected in 1022."

The matter was referred to the Finance Committee for consideration.