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Local council spending increased in the three months to March.
Statistics New Zealand statistician Geoff Bascand said operating costs for local authorities were up 3.8 per cent, or $54.3 million, on the previous quarter.
"Purchases of goods and services and donations, and... increases in interest paid, employee costs and depreciation...contributed to this rise," Mr Bascand said.
The rise in spending was more than the rise in revenue, he added.
Total operating revenue was up by 2.6 per cent.
Overall, local authorities chalked up a $49.6 million surplus in the March quarter, compared to a $72.3 million surplus in the one before.
- NZPA
