Local Authority Revenue Rises

Local Authority Revenue Rises

Local authorities' seasonally adjusted operating revenue increased 4.2 percent in the three months to December 2002, according to Statistics New Zealand. The latest quarterly local authority survey reported total revenue of $1,056.9 million, a rise of $43.1 million over the September 2002 quarter.

The increase was largely due to a $68.0 million increase in dividend revenue. There was also a $1.9 million increase in rates, petrol tax, licence fees and fines. These increases were partly offset by an $18.1 million decrease in government grants and subsidies and a $10.4 million decline in sales of goods and services. Total revenue for the December 2002 quarter was $85.0 million or 8.7 percent higher than the $971.9 million recorded in the December quarter a year ago.

Local authority expenditure rose to $1,011.5 million in the December 2002 quarter, a $3.4 million rise compared with the September 2002 quarterly result of $1,008.1 million. The 0.3 percent increase was the result of a 1.7 percent rise in purchases of goods and services, which was partly offset by a 7.2 percent fall in interest paid, a 0.8 percent decline in depreciation, and a 0.5 percent decrease in employee costs. This was the first decrease in employee costs since the June 2000 quarter.

Overall, local authorities recorded a $45.4 million surplus of operating income over operating expenditure in the December 2002 quarter, an increase of $39.7 million over the September 2002 quarter surplus.

Brian Pink

Government Statistician

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