The February 2004 floods had an impact on the June 2004 quarter financial results of a number of local authorities in the lower North Island, according to Statistics New Zealand. Additional government grants, mainly for road repairs, saw total government grants and subsidies to all New Zealand’s 86 local authorities increase to $156.0 million for the quarter, when seasonally adjusted. This was an increase of $15.4 million (11.0 percent) on the March 2004 quarter.

The same floods also contributed to a record quarterly expenditure figure of $1,125.8 million, an increase of $23.4 million (2.1 percent) compared with the March 2004 quarter. Purchases of goods and services, grants and donations, and all other expenditure was the largest component, accounting for $615.6 million, an increase of $18.8 million. Overall, local authorities produced a combined operating surplus of $52.0 million in the June 2004 quarter, a decrease of $23.1 million on the March 2004 quarter.

Provisional figures for the financial year ended 30 June 2004 show local authorities reporting a combined operating surplus of $236.9 million. This is an increase of $11.5 million on the June 2003 annual result. Revenue for the year was $4,616.7 million, an increase of $364.9 million (8.6 percent) compared with the 2003 year. Rates, petrol tax, licence fees and fines increased 7.3 percent, sales of goods and services increased 8.0 percent, government grants and subsidies were up 17.6 percent, and investment income rose 6.6 percent.

Expenditure was $4,379.7 million in the June 2004 year, an increase of $353.3 million (8.8 percent) compared with the previous year. Employee costs increased 7.2 percent and depreciation rose 4.8 percent. Interest paid decreased 2.3 percent. The largest expenditure category, purchases of goods and services, grants and donations, and all other expenditure, rose 11.8 percent to $2,359.4 million.