H.—2

10

The revenue of the town from all sources since its incorporation in 1901 has been as follows: —

The total increase in revenue for the last year—viz., to £5,150, from an average of £4,022 for the previous five years, a difference of £1,028 —is thus made up mainly of non-recurring itema —viz., .£.127 in Crown rents, and £437 in nightsoil fees—leaving a normal revenue for the pas! year of £1,400. The actual increase in normal revenue is thus only from £4,000 in 1904 to £4,400 in 1908, and for the ourrenl year the total estimated revenue is still less—viz., £4,300. During this period the population has approximately doubled, and the municipal requirements have increased three- or four-fold. The revenue is still sufficient to meet these requirements, but failing any new sources of revenue, it is necessary to spend every pound that is available on such permanent improvements as are calculated to reduce the cost of cleaning and maintaining the mads and streets in future, when the increasing municipal needs will overtake the practically fixed revenue. This is particularly necessary, since under the Rotorua Town Act the town litis no power to raise a loan to cover such permanent improvements. With this object in view, the works carried out during the past year have been of as permanent a nature as possible in the streets and roads, and of a revenue-producing character in other directions. With careful administration the existing revenue should serve the needs of the town for some years to come. Hut the question of seeking supplementary sources, or of increasing the existing sources of revenue, will require to be dealt with later, in order to meet the municipal requirements of a growing community. In addition to the realisable assets shown in the balance-sheet, amounting to £4,328, the following is an approximate estimate of the value of the permanent improvements to the streets and roads, the greater portion of which has been carried out from the municipal revenue of the town during the past eight years: — £ Earth roads formed (1,600 chains, at £2) ... ... ... ... 3,200 Roads formed and pumiced (800 chains, at £4) ... ... ... 3,200 Streets metalled (30 chains, at ... ... ... ... 600 Streets metalled and tarred (80 chains, at £28) ... ... ... 2,240 Wooden culverts (40 chains, at £2) ... ... ... ... 80 Pipe culverts (20 chains, at £4) ... ... ... ... ... 80 Concrete kerbing (200 chains, at £2 55.)... ... ... ... 450 Concrete channelling (200 chains, at £2 55.) ... ... ... 450 Tarred pavements (160 chains, at £6) ... ... ... ... 960 Total £11,260 The expenditure for the year under review has been £5,833, which has been distributed over the following items, the expenditure on the corresponding items for each year since the incorporation of the town being added for comparison: —

1901. 1902. £ 1,198 474 279 168 38 21 29 14 15 1903. 1904. 1905. J L_ L £ £ £ 2,016 1,940 i 1,976 869 ! 1,269 I 1,442 374 411 ; 512 169 ' 165 184 93 81 124 23 34 70 28 ' 81 77 14 22 ' 47 34 22 15 1906. £ 1,870 1,203 517 186 169 62 39 36 25 1906. 1907. 1908. £ £ L.618 , 2,277 1,324 1,294 513 , 950 189 182 128 ' 189 58 | 81 47 50 29 34 57 93 1907. 1908. /rown rents 5ath fees ... lightsoil fees 'ublicans' licenses ... ieneral licenses .library fees 'ound fees )og-registration lundries £ 873 106 149 6 9 15 "*6 Total 1,164 2,236 3,620 3,975 4,447 4,107 3,963 | 5,150

1901. 1902. 1903 1904. 1905. 1906. 1907. 1908. Works Nightsoil Fire-prevention Isolation hospital Licensing expenses ... Library Pound Charitable aid £ 330 186 £ 1,160 269 £ 2,797 363 £ 2,710 314 39 56 39 104 £ 3,195 412 153 46 20 62 £ 3,429 394 4 17 17 50 5 2 20 374 64 124 £ 2,723 417 151 38 37 170 £ 4,240 485 154 92 22 110 24 6 23 337 157 183 11 13 15 26 Insurance ... Salaries Office expenses Sundries 98 16 74 192 52 105 13 334 55 104 1 19 337 47 42 1 20 335 102 101 18 334 170 70 Total ... 3,707 3,708 4,447 4,500 4,128 5,833 904 1,802 Assets ... 1,387 1,383 4,328