WELLINGTON: Local government finance statistics (GFS) had a net operating surplus of $0.9 billion for the June 2014 year, Statistics New Zealand said today.
The majority of local authorities showed increases in rates tax revenue. The increases were consistent with a 4.1 percent price increase for local authority rates and payments, and a 1.1 percent increase in the estimated number of private dwellings.
“The taxation revenue from property rates increased 5.9 percent, to $4.8 billion, but this was offset by a drop in capital transfers from central government,” local government manager Gary Dunnet said.
The offsetting drop in capital transfers resulted in relatively flat growth for total operating income – to $9.1 billion.
Total operating expenses for local government increased 2.0 percent, to $8.2 billion in the June 2014 year. Employee expenses and depreciation pushed expenses up by $0.1 billion.
GFS net borrowing for local government was $0.7 billion in the June 2014 year, down from $1.2 billion in the June 2013 year. Net borrowing means that the operating surplus was insufficient to finance the net additions of fixed assets.
Local government net worth increased 5.5 percent, to $106.8 billion at 30 June 2014, largely due to an upward revaluation of assets.
The statistics released today includes aggregated statistics for local government transactions for the year ended June 2014. The Local Authority Financial Statistics are available for each local authority, and can be found on Infoshare.
