Local authorities' surplus falls

Local authorities recorded a $22.7 million seasonally adjusted surplus in operating revenue over operating expenditure in the June 2008 quarter, Statistics New Zealand said today. This surplus was down $37.4 million compared with the March 2008 quarter.

Total seasonally adjusted operating revenue for the June 2008 quarter was $1,569.1 million, down $15.7 million (1.0 percent) compared with the March 2008 quarter. The decrease was due to decreases in rates (down $8.2 million or 0.9 percent), government grants and subsidies (down $8.1 million or 3.8 percent) and regulatory income and petrol tax (down $7.9 million or 7.1 percent). The decreases were partly offset by increases in investment income (up $5.5 million or 7.6 percent) and sales of goods and services and all other income (up $2.9 million or 1.0 percent).

Total seasonally adjusted operating expenditure for the June 2008 quarter was $1,546.4 million, up $21.7 million (1.4 percent) compared with the March 2008 quarter. Of the expenditure items, depreciation showed the largest increase, up $16.8 million (5.4 percent) from the March 2008 quarter to reach $328.8 million. Employee costs increased $4.0 million (1.1 percent).

Provisional figures for the financial year ended 30 June 2008 show local authorities reporting a combined operating surplus of $158.6 million, down $29.3 million from the year ended June 2007 result. Operating revenue increased $405.4 million (to $6,228.7 million) compared with the year ended June 2007. Operating expenditure for the latest year was $6,070.1 million, up $434.8 million (7.7 percent) compared with the 2007 year.