Campbell said a key factor in this drop was Israel Dagg missing out on the All Blacks.
"We get extra money from the New Zealand union if any of our players make the All Blacks Championship squad."
However, for the third consecutive year the union's equity was more than $1 million — $1,277,426 to be precise, an increase of $107,934 on last year.
The New Zealand Rugby Union's grant dropped by $38,612 to $1,592,131.
Total expenses for the union dropped $211,924 to $4,019,037.
Expenses for the Magpies amounted to $1,772,577 which was $19,724 less than the previous year.
Outgoing union finance chairman Mike Smith was thrilled to deliver a second consecutive surplus before stepping down from the board to focus on his Magpies manager's role.
Smith and Campbell said the union will aim for a $4,207 surplus during the 2019 season.
They pointed out the union intends to put a further $100,000 into the funds for the Community Training Centre which will be built at Napier's Park Island.
More money will also be invested into the community game with more staff and video technology.
While the union's sponsorship dropped $11,982 to $1,929,905, income from grants increased by $9514 to $284,789.
"We are extremely fortunate to have such amazing commercial partners who provide significant funding in order for us to deliver the many community initiatives and activations we have as well as fund our Magpies and other representative programmes," Campbell said.
NPC match income increased by $13,604 to $106,383.
Rugby development expenses dropped $12,860 to $1,139,003.
Team expenses dropped $2318 to $1,961,372. However, expenses for the Hawke's Bay Tui women's NPC team increased by $4512 to $30,101 and for the Hawke's Bay women's sevens team by $5615 to $17,893.
The union's administration expenses increased $16,733 to $326,986.
The union's chairman since 2011 and a director since 2004, Brendan Mahony, was re-elected as a director after retiring by rotation. At the first ballot Mahony scored 19 votes while former Magpie Peter Davis scored six and Central club president Tony Mackie scored four.
Davis beat Mackie 19-10 in the second ballot for the other director role vacated by former union president Peter Fleming. Current co-opted director Steve Lunn and Napier Old Boys Marist finance director Craig Riddiford were elected unopposed as the co-opted directors.
Lunn told the meeting a review of the union's constitution had been under way since last year's annual meeting and it will be re-presented for consultation at a special general meeting in the near future. Taradale was the only club which responded when it was first sent out last year.
One of the key points for discussion will be the voting structure for union meetings and changing it to a one club, one vote system. Under the current system several clubs with a certain amount of teams are allowed two votes.
Details of an independent review of the union were released. It revealed almost 60 per cent of 800 people who participated in the review were satisfied the union was on the right track with its sense of direction and leadership. The majority of people who participated in the survey believed more support to the development, retaining and training of players was a must.
Participants in the survey were concerned with the drop off in the number of junior players which is a nationwide concern.
Officers elected: Patron, Neil Thimbleby; president, Paul Daniel; directors, Brendan Mahony, Peter Davis, Steve Lunn, Craig Riddiford, Mark Hamilton, Mavis Mullins, Danny Gough, Mark Sowman.
