Local authorities operating revenue increases

Local authorities’ seasonally adjusted operating revenue increased 4.3 percent for the December 2008 quarter, Statistics New Zealand said today, following a 3.1 percent increase in the September 2008 quarter.

Total seasonally adjusted operating revenue for the December 2008 quarter was $1,689.6 million, up $69.4 million compared with the September 2008 quarter. The increase was mainly due to increases in investment income (up $28.5 million or 44.5 percent), government grants and subsidies (up $22.4 million or 9.9 percent) and rates (up $13.7 million or 1.4 percent). Total investment income includes interest revenue and dividend revenue. A significant increase in dividend revenue is typical for a December quarter.

Total seasonally adjusted operating expenditure increased 2.5 percent for the December 2008 quarter. Total expenditure for the December 2008 quarter was $1,638.5 million, up $39.7 million compared with the September 2008 quarter. Increases in purchases of goods and services, grants and donations, and all other expenditure (up $27.4 million or 3.5 percent) and employee costs (up $8.8 million or 2.3 percent) were the major contributors towards this increase.

Local authorities recorded a $51.0 million seasonally adjusted surplus in operating revenue over operating expenditure in the December 2008 quarter. This surplus was up $29.7 million compared with the September 2008 quarter but down $13.5 million compared with the December 2007 quarter.