Local authorities' operating surplus flat

Local authorities’ operating surplus fell $1.2 million in the June 2007 quarter, Statistics New Zealand saidtoday.

The seasonally adjusted surplus was $47.5 million in June 2007, compared with a $48.7 millionsurplus in the previous quarter.

Seasonally adjusted expenditure was down 0.6 percent in the June 2007 quarter.

Total expenditure for thelatest quarter was $1,458 million, down $9.4 million compared with the March 2007 quarter.

The purchasesof goods and services and donations, and all other expenditure category contributed $4.3 million to thedecrease, followed by almost equal decreases in interest paid and depreciation.

However, employeecosts rose 0.5 percent over the June 2007 quarter.

Total operating revenue for the June 2007 quarter was $1,506 million, down $10.5 million (0.7 percent)compared with the March 2007 quarter.

The main contributors to the decrease were a $30.6 millionfall in rates (3.6 percent) and a fall in regulatory income and petrol taxes (down $13.2 million or 14.1percent).

These decreases were partly offset by an increase in investment income (up 36.1 percent).Geoff Bascand Government StatisticianEND