Economies Carried Out to Offset Shortage of Funds:
Treasurer Reports The Shanghai Munjeipal Couneit last Wednesday afternoon approved the minutes of a Finance Committes meeting at which were considered the departmental accounts for the nine months ended September 30 which the Treasurer and Controller surveyed in a verbal statement in the course of which he outlined the Couneit's Ananciat position.
In a report submitted to the Fin ance Committee, the Treasurer Controller stated that in forwarding. the departmental accounts it was ne-assary for him to point out, in regard to the summarized results, that the surplus on the ordinary budget as on September 30 last was shown at. $1,923,593, as against an estimated Surplus of $95,810 for the full year. This result did not reflect the position which would be disclosed at the end of the current financial year, inasmuch as the income side of the statement included the full year's revenue from land tax. On the other hand.
was to be observed that the amount shown under the heading of "revenue from public and municipal undertak-Ings" did not include the third quar-{er's Income from this source in Fespect of royalties, ele, computed halt-yearly. The total ordinary ome from general municipal rate and special rate for the period under review was approximately $563,000 below the proportion estimated for the nine months. This shortage had been influenced by reduction in new buildings as compared with previous years; reduction in rentals; and an Ineretse in unoccupied premises.
'A further shortage had arisen under wharfage dues and licence fees, The Treasurer and Controller remarked that It was satisfactory, however, to note that the foregoing de-Aciencles were more than offset by the aggregate reductions in departmental expenditure, In response to request by the Chairman verbally to amplify his Feport, the Treasurer and Controller stated that the financial statement for the nine months ended Sepember 30, 1985, recently furnished to them had deen complied for the purpose of advising departments and relative committees of ascertained expenditure for the nine months, thereby provid ing a further check on expenditure during the remainder of the financial your, and also to form a basis on, Which to prognosticate the results of the full year's operations, As regarded Municipal revenue. this had been very seriously affected during 1035 by the general economic depression through "which the city was. passing. As already. indicated, income from Municipal rates, licence fees, and other sources of revenue had' been considerably lower than ipated, though he believed that the situation in regard to amply pre mises and the decrease in new buildings as compared with previous yearn year, and with due reserve he estimated that this would be in the rnelghbourhood of $00,000 as compared with an estimated surplus of $36,000 and an actual surplus of approximately $700,000 in 1934. Considering the unprecedented difficulties that had to be met during the current year, he considered that, if'this was Ultimately achieved, it would be matter for some satisfaction.
"Greater Dimeutties"
As regarded the budget for 1996, which would be materially affected a surplus were carried forward, he lwarned that greater diMculties than these encountered during.the past [few years would have to be met and that," assuming Municipal ' taxation }was' continued on its present. basis ind was for another year stabilized at 14 per cent, to which it was reduced in July, 1990, he anticipated there would be' an initial deficit of Jsome $3,500,000. The ordinary budget for 1035 was cut even to a grea-for extent than that of 1994, which Jat that time was considered to have been seriously curtailed. The 1896 budget, as already Indicated, would require still more drastic treatment. Tt must be recognized, however, that these successive reductions In expenditure on the essential services ould not be indefinitely, continued for. otherwise the final result could" only be a reduction femicieney" and in. the amenities provided for the community.
The Treasurer stated that It had been possible. with the close co-Joperation of the Commissioner of [Public Works, to reduce expenditure below that contemplated by a sum which It was anticipated woul amount to approximately $1,500,000; this result could, of course, only be achieved by holding up of postponing Various capital projects, In this connection it should be noted that Such under-expenditure had been of material advantage during this aim-cult year of fuancing, All Commitments fet It was, of course, impracticable to float @ Municipal Loan, but by means an addition to the temporary sterl-Ing overdraft, this being in the absence of normal facilities, and to the sale during the year of available Investments at favourable rates, it been possible to finance the fage securing the loan made in 1933 to the Shanghai 'Telephone Company had also been of advantage in that Jan instalment payment of approximately $1,000,000 was received on June 50, lost, and that a similar sum' was due at the end of the year.
In regard to loan obligations, the 'Treasurer stated that, under' the authority of the Council, be had Jarranged earlier in the year with the trustees of the debenture holders
Text read from the printed page and cleaned; old type leaves the occasional error.