BOROUGH WORKS..

Taranaki Daily News, 21 March 1921, Page 5

BOROUGH WORKS..

THE YEAR’S PROBLEMS. ' (THE ANNUAL ESTIMATES. GENERAL MANAGER’S REPORT, The general manager of the New Plymouth Borough Council (Mr. F. T. .Bellringer) repots as follows to tonight’s meeting of the council:— The estimates of the general rate required is based upon the existing valuations, as it is not anticipated that the new valuations will be available in time for striking the new rates in June next. I do not deem it advisable to wait for the new valuatioils. If the rates are not struck until late in the year the date for adding the 10 per cent, additional charge will be so near the end of the year that a large proportion must necessarily be outstanding. This, although it would adjust itself the following year, would seriously embarrass the council during the ensuing year. From the draft estimates it will be seen that it is anticipated that we will commence the year with a debit balance of £8751. It may be possibile during the present month to slightly reduce this amount, but the reduction, if any, will not be very large. RECEIPTS. On the receipts side the following items call for explanation. Electric Light Profit, £4soo.—For several years the whole of the profit of the electric light department has been transferred to the general account. I understand that it is the desire of the department and of several councillors that the transfer should not be continued this year. This course, however, cannot be adopted without a very substantial increase in the general rate. Rents.—The estimated rents to be received is put down at £2BOO, compared with £875 received last year. The increase is due to the conversion of the Ngaere leases. Reimbursement Streets.—This item is mainly for refunds for running the plant for loan works, and for sale of materials t? loan account. The borough engineer sets this amount at £l7OO Tor the ensuing year, it being improbable that any loan works will be undertaken owing to the loan not being floated. The amount is very low compared with last year, but the point is immaterial, because if a larger amount be received there will be a corresponding increase on the expenditure side, the item being merely a reimbursement of expenditure. Sanitation.—This item is shown at a considerable increase. , The reason for this is explained under the same heading on the expenditure side. General Rate.—An increase of £9OO is shown in this item. This represents an increase equal to 2d in the £ on the annual value. This will be adjusted by discontinuing the. tramway rate, Which equals the same amountj, but is not required. If the electric light profits are not included in the estimates it will be necessary to increase the general rate. I am unable tc recommend any such increase in view of the fact that the total rates must necessarily be increased by an amount equal to approximately 3d in the £ on the annual value to provide interest on the portion of the £57,000 loan raised. EXPENDITURE. Streets maintenance, asphalting, tarring.- This item has been set down at £12,754, which is a considerable reduction upon the amount expended last This is due to the fact that many of the tar-sealed roads are»now in firstclass order, and will not require re-coat-ing next year. The borough engineer, in his estimates, asks for £10,754. I have added £2OOO for contingencies, as my experience is that owing to unforseen expenditure this vote is always greatly overspent at the end of the year. Reserves.—l have allowed £5OO for groynes to,prevent th© sea erosion at the East End Reserve. Sanitation.—This item is now separated into two parts —sanitary £1340, dust removal £B4O, total £2lBO. The inspector’s estimate is for a total of £1960, but it is necessary to allow at least £2OO for contingencies. Last year the vote for this was £1475, and the expenditure £2480. During the past year the service was so dislocated and the expenditure increasing to such an extent that in November last I instructed the inspector to submit a report as to how the service could be made efficient, and suggested that th« contract system would provide the best solution. This was approved by the council, and early in January a contract for three years was let. The saving to to the council will not be very great, but it will have the effect of eliminating labor troubles and preventing the expenditure from soaring still further. Last year there was a loss of £l>l3o upon the service, the deficiency having to be made up by the general account. f Services of this sort, however, be self-supporting, and it will be necessary to increase the charges as follows: Sanitary from 26s to £2 2s 6d, rubbish removal from 7s Gd to 9s 6d. The loss to the general account since this service commenced is £2265. Previously the amount which could be charged for these services was limited by statute, but we were successful in obtaining an amendment in the Municipal Corporations Act (which comes into operatio on April 1 next) whereby the fees can be fixed to cover the actual cost. THE DEBIT BALANCE. Debit balance at end of year.—This is shown at £4255, being a reduction of £4496 for the year. Two years ago the general account was in credit £1948. At the end of this month it will be in debit £8751, so that for the two years the expenditure in excess of the receipts has been £10,699. This, however, was the natural and expected result of the policy of the council that the tar-sealed roads which had been allowed to get into a bad state during .the war period should be immediately and effectively repaired in order to save the very large capital expenditure incurred in their construction. The expenditure upon the streets during the last two years has avenaged £23,395 per annum, compared with the average for the five previous years of £7433 per annum. The streets in question are now in good order, and the expenditure for the ensuing year has therefore been cut down nearly one half. Every effort, however, should be made to wipe out the debit balance at the earliest possible moment, and the reduction of £4496 shown in tbo

cannot be considered excessive, and should be the absolute minimum to be aimed at. We must also remember in this connection that in October, 1922, loans to the amount of £134,000 fall due, and will require to be refloated at a considerable increase in the interest rate. It is essential therefore that at this period the general finances of the council must be in as strong a position as possible to stand the additional strain placed upon them. HYDRO-ELECTRIC LOANS. During ths previous month a letter was received from the Prime Minister granting authority to the Council to sell the debentures of the above loans at such a price as would not produce more than 5| per cent, interest per annum to the lender. The council Had applied ?or permission to pay 6 per cent., and even at this rate anticipated the greatest difficulty in disposing of the debentures. Considering that at per cent, the task was hopeless, the council directed that a further appeal should be made to the Prime Minister, and this was done, a lengthy letter reiterating the facts being placed before him. He, however, declined to accede to the request, but from his letter it appeared that there was a possibility of his agreeing to permit 6 pe” cent, to be paid provided the ratepayers specially authorised it at a poll. He has been askeu to state definitely whether this is correct, and, if bo, a poll will be taken on the same day as the general election of councillors. MUNICIPAL TRADING. During the month a deputation representing all the retail electrical traders in the town waited upon the council requesting it to withdraw from the electrical house-wiring and fitting business on the grounds that private enterprise was being greatly affected by the borough’s competition. After the fullest consideration the council, however, decked that it could not see its way to accede to the deputation’s request.