Local authorities record higher operating surplus

Seasonally adjusted local authority revenue rose $15.8 million (1.0 percent), while expenditure rose $5.0 million (0.3 percent), to produce an operating surplus of $72.3 million in the March 2008 quarter, Statistics New Zealand said today.

This compared with a December 2007 quarterly surplus of $61.5 million.

While earnings from interest and dividends fell $31.1 million (29.4 percent), income from all other revenue sources rose $46.8 million.

Increases in revenue were recorded for government grants and subsidies, up $19.1 million (9.9 percent); rates, up $14.1 million (1.6 percent); sales of goods and services and all other income, up $8.4 million (2.9 percent); and regulatory income and petrol tax, up $5.2 million (4.7 percent).

Expenditure increases were recorded for employee costs, up $14.8 million (4.2 percent) and depreciation, up $8.8 million (2.9 percent).

These rises were mostly offset by falls in expenditure on interest paid, down $13.4 million (14.8 percent) and purchases of goods and services and all other operating expenditure, down $5.2 million (0.7 percent).

Results from the Local Authority Census are now available for the year ended June 2007.

Annual operating revenue increased 8.3 percent and operating expenditure rose 7.7 percent since June 2006, resulting in an annual surplus of $187.9 million.