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Local Authorities' Surplus Up

Local Authority Statistics: June 2000 quarter

Local authorities generated a seasonally adjusted surplus of $104.0 million from non-trading activities for the June 2000 quarter, Statistics New Zealand's latest Quaterly Local Authority Survey shows. This represents an increase of $3.6 million on the surplus for the previous quarter. There was a 0.7 per cent decrease in operating expenditure and a 0.3 per cent drop in operating revenue.

The decrease in operating revenue was due to a decline in investment income , down $18.4 million from the March 2000 quater to $84.0 million. Revenue from interest is at the lowest level since the December 1994 quarter. Rises were recorded for all other revenue items with: rates, petrol tax, licence fees and fines, up $11.1 million; government grants and subsidies, up $4.6 million; and sales of goods and services and all other income, up $0.2 million.

Current expenditure for the 86 local authorities was $854.8 million for the quarter. Purchases of goods and services was the only item to record an increase, up $4.1 million. Decreases were recorded in: employee costs, down $6.3 million; interest paid, down $2.3 million; and depreciation, down $1.6 million. Depreciation has been gradually decreasing since peaking in the June 1999 quarter at $207.6 million, following the introduction of legislation requiring councils to fully fund asset replacement.

Ian Ewing DEPUTY GOVERNMENT STATISTICIAN

END

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