BOROUGH FINANCE.

Taranaki Daily News, 15 January 1921, Page 5

BOROUGH FINANCE.

EXPENDITURE FOR NINE MONTHS. DEBIT EXCEEDS ESTIMATE. r REVIEW BY GENERAL MANAGER. The borough expenditure in New Plymouth out of general account during the past nine months is reviewed by the general manager (Mr. F. T. Bellringer) in a report to be presented to the Borough Council on Monday evening. . In the course of his remarks, Mr. Bellringer makes a comparison with the estimate of expenditure made at the beginning of the financial year (last April) and the actual liability incurred. The debit balance at December 31, he states, was approximately £4OO in excess of the amount set down as the estimate for the full year, which ends in March next. The report states: “In vie'w of the fact that substantial increa'ses have taken place in both the cost of labor and materials, and also in view of the fact that loan moneys were not available for liew works, it has been for some time realised that the gravest difficulty would be experienced in keeping the general accounts debit balance within reasonable limit's. For many years loan moneys have been available, and it has been possible to keep the majority of the working staff and the whole of the plant engaged „■ upon loan work for a good portion of the year. This had the effect of relieving the general account of very heavy expenditure in the working costs and overhead charges upon the plant. This year very little loan account money has been available for street works, and the general account has had to carry the whole of the burden. In addition, stocks of boulders and metal were accumulated with a view to supplying the loan works later on, but in view of the circumstances, there is very little ihance of liquidating these stocks before the end of the financial year. The effect is seen in the attached statement comparing the estimated receipts and expenditure for the. year ending March 31, 19&1, with the actual receipts and. expenditure for the past nine months. This statement will be more readily understood if the details are eliminated and lump sum totals substituted. In the following summarised statement this has therefore been done. EXPENDITURE.

“From this it will be seen that when the estimates were prepared in February, 1920, it was anticipated that at March 31, 1921, the debit balance would be £3898, and that at December 31, 1920, the debit balance was £BB7l. 10s 9d. Included in the estimated receipts, however, was an item of £5OOO to be transferred from the waterworks account. This transfer will not be mado until March 31 next, but there was available for transfer on December 31 the sum of £4568. This amount can therefore legitimately be deducted from the £BB7l debit balance. This would reduce the balan’ce to £4303, which is the actual position. The debit balance at December 31 is, therefore, approximately £4OO in excess of the amount it was hoped it would be three months hence.

“The position is unfortunate, as the next three months will be the busiest months of the year—the dry months, during which it is possible to rush the tar work through. A large amount of this work must be completed in order to put the tar-sealed roads in a thorough state of repair for next year’s traffic. It is a question, however, whether the full programme of works originally contemplated can be adhered to, and this is a matter the council will have to take into immediate consideration. In order that the council may be in a position to decide this question I have prepared revised estimates showing what the actual position should be at March 31 next if the full programme is adhered to. Briefly these are as follows: EXPENDITURE.

“As already shown, we commenced the year with a debit balance of £7763. This was the highest debit balance this account has ever shown, and was caused by the extremely heavy expenditure incurred the previous year in the successful attempt to save several miles of tarsealed roads, principally those comprising the tram route, which had been permitted to get into a very bad state during the war period. The very heavy expense rendered necessary thereby played havoc with the general account. There is no question, however, that the right thing was done, and that many thousands of pounds were saved to the ratepayers thereby. At the samg time, I think that an attempt should be made this year, even at some sacrifice, to reduce the debit balance. Owing to the circumstances mentioned, a great- deal cannot be effected, but I think - an earnest attempt should be made to see that the debit balance does not exceed £6500 at the end of the year. COLLECTION OF REVENUE.

“The return shows that the collection of revenue has been very satisfactory. The principal i\em is, of course, rates. The total rates levied, including special rates, amounted to £31,642 9s Bd. Of this, £30,398 2s lid has been collected, leaving £1244 6s 9d outstanding for the current year. There are no arrears for years. Of the amount outstanding, the greater proportion will probably be collected prior to the end

firlst year upon the system of upon unimproved values, and the greaU difficulties experienced in regard to ations, thia result is very much than coul<i possibly have been antici/ pated at the beginning of the year, TAR-SEALING TOO COSTLY. “As mentityied in a report in thq early part of last year, it is becoming more and more apparent that some better and more permanent method of lay-’ ing down streets than by tar-sealing niust soon be adopted. A tar-sealed road requires retarring every year, or, at the outside, every eighteen months. This means a high cost of upkeep, and causes a very serious drain upon the general account, as once constructed, the road must be regularly maintained, or the capital cost is soon entirely lost. What is required is something that,*once constructed, will stand for a comparatively long period with very little cost for annual upkeep. It was claimed that concrete roads would meet the situation, but experience gone to prove that such is not the case, and it appears that even in America, the home of the concrete road, this method of, construction will eventually be abandoned in favor of roads laid down wlthj various forms of bitumen and macadam. This coincides with viewa which both the borough engineer and I have previ* ously expressed when concrete roads were advocated for New Plymouth.” ‘‘Before new streets are constructed, the fullest consideration should be given to this question. The methods mentioned are by no means new, and figures arc obtainable showing, not only the capital cost, but also the annual maintenance charges over a long period, of years. Our principal streets are tarsealed, and in several cases the levels cannot be altered, even for a few inches, owing to the tram rails. The problem we have to solve, therefore, is how to modify the methods mentioned in order to obtain the advantages of the lowmaintenance costs without reconstructing the roads. It is hoped that this may be effected by giving the roads a coating of bitumen, top-dressed with Napier gravel. Both these materials have been obtained, and Devon Street, from Robe Street to Gover Street, will shortly be treated this,, way. The result will be watched with interest, and there appears to be no reason why they, should 1 ndt Be entirely successful. If anticipations are realised, a very large saving of annual maintenance charges will be effected.”

Estimated Actualto 31/3/21. 31/12/20- ' £ £ » <1 Dr. balance, 1/4/20 7640 7763 18 11 Expenditure 35294 34025 0 1 42943 4178819 0 RECEIPTSReceipts 39045. 32917. 8 3 Dr. balance, 31/3/21 3898 ' 8871 10 9 42943 41788 19 0

'£ s d Dr. balance, 1/4/20 7763 18 11 Actual expenditure to 31/12/20 34025 0 I Estimated expenditure 3 months to 31/3/21 ... 11430 0 0 Total ..... 53218 19 0 RECEIPTS. Actual to 31/12/20 32917 8 3 Estimated 3 months to 31/3/21 10570 0 0 Estimated Dr. bailee 31/3/21 9731 10 9 Total ....... 83218 19 0