The polyline graph illustrates the financial position of a New Zealand local authority in millions from 2012 till the present and also shows the estimations till 2022.
Overall, it is clear that rates revenue and user charges are predicted to increase over the period. While, borrowings and grants and subsidies are likely to remain much lower.
Rates revenue and user charges increased moderately till 2018 and they are forecasted to follow the similar pattern over the rest of the time frame. Rates revenue stood at just under 1. 5 billion in 2012, which was the highest of the four criteria. Though it remained stable for a year but then increased gradually until 2018, it is expected to climb to approximately 2. 4 billion dollars in 2022. Like rates revenues, user charges are predicted to increase continuously. They began the period at 1 billion and are likely to become twice by 2022.
Borrowings, on the other hand, showed considerable fluctuations and are expected to do same in the following years. Initially, they rose dramatically to about 1200 million in 2014 and followed a drop of 600 million in 2016. After that although they increased steadily but they are predicted to reach at peak of just under 1. 5 billion in 2020 and likely to finish the period at around the same level from where they began. Grant and subsidies were the lowest of the four, at under 500 million in 2012. Despite moving up to exceed borrowing briefly in 2016, this lowest value is forecasted to decrease marginally over the rest of the time period.
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