Local authority deficit doubles in a year as expenditure jumps 9.5%

Local authority deficit doubles in a year as expenditure jumps 9.5%
Local authority expenditure was up 9.5% in the June quarter from the same time a year ago as total revenue collected rose 7.1%, widening the local authority operating deficit to NZ$84.8 million, double what it was in June last year. Consumer Price Inflation in the year to June was 1.9%. There was NZ$965.1 million worth of rates collected during the June quarter, up from revised figures of NZ$956.4 million in the March quarter and NZ$899.1 million in the June quarter of 2008. Rates figures are not seasonally adjusted and rose 7.3% from a year ago. Seasonally adjusted figures show regulatory and petrol tax income rose 4.1% from March to NZ$106.1 million in the three months to June, while the amount of government grants and subsidies rose 4.4% over the quarter to NZ$228.4 million. Seasonally adjusted figures also show employee costs rose 3.8% over the quarter, while unadjusted figures show these costs were up 9.4% to NZ$410.9 million from June 2008. Seasonally adjusted figures show the local authority operating deficit widened by 66% between March and June to NZ$101 million. Revenue was up 0.8%, while expenditure rose by 3.2%. In the March quarter, local authority expenditure was up 9.9% from the year before, while revenue was up 5.9% year-on-year. Investment income in the June 2009 quarter was $90.2 million, up $17.1 million (23.4 percent) from the March 2009 quarter.

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