Local authorities post another surplus

Last updated 11:12 13/06/2012

Relevant offers

Industries

No visitor levy but other sweeteners possible - Steven Joyce Union pushes for tighter lift safety rules following death of Wellington man Brendon Scheib 'Perception' the problem as super changes bring ageism into sharper focus Chart of the day: Sharp drop in value of exports from Port Taranaki Wellington's Amora Hotel says it is closing for up to 12 months TVNZ outlines newsroom cuts to staff No fine but demolition company director pleads guilty over asbestos danger Fletcher Building is a target for bored investment banks, fund says Budget will bump up NZ's infrastructure spending, finance minister signals NZ Mint seals $60m export deal to China

Local authorities have run surpluses for the past two quarters - the first surpluses since the end of 2007.

The surpluses were achieved in part due to better investment income and other sales income rather than a big rise in rates.

The operating surplus in the March quarter for all local authorities was $50 million. Income also exceeded expenditure by $63m in the December quarter last year, Statistics NZ said.

They were the first surpluses since the $14m surplus in the December quarter of 2007.

Operating income - money for core services - for the March 2012 quarter was $2.0 billion, up 0.3 per cent from the previous quarter.

Operating spending on core services also increased during the same period, by 1.0 per cent, to $1.9b.

Investment income (up $19m), and sales and other operating income (up $10m), were the main contributors to the rise in operating income.

There were smaller increases in regulatory income and petrol tax (up $7m) and rates (up $3m).

These rises were partly offset by a fall in current grants, subsidies, and donations income (down $34m).

The rise in operating expenditure was mainly due to increases in depreciation (up $14m) and employee costs (up $11m). These increases were partly offset by decreases in purchases and other operating expenditure (down $6m) and interest expenditure (down $1m).

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content