Local authorities operating expenditure rises

Local authorities' seasonally adjusted operating expenditure increased 3.2 percent to $1,762.1 million, while operating revenue rose 0.8 percent to $1,661.1 million in the June 2009 quarter, Statistics New Zealand said today. These rises produced a seasonally adjusted operating deficit of $101.0 million.

All expenditure categories increased in the June 2009 quarter, with significant contributions coming from depreciation (up $22.5 million or 6.4 percent), and employee costs (up $14.6 million or 3.8 percent). Although income from the sales of goods and services fell $25.8 million (8.7 percent), earnings from all other revenue sources rose $39.6 million.

For the year ended June 2008 compared with the year ended June 2007, local authority operating expenditure increased 10.2 percent to $6,209.1 million and operating revenue rose 6.9 percent to $6,152.9 million, to produce an annual operating deficit of $56.3 million. After allowing for non-operating items such as extraordinary gains or losses and asset revaluations, local authorities recorded a surplus of $1,303.3 million. These results are from the annual Local Authority Census for the year ended June 2008, which are now final.
All expenditure items contributed to the annual expenditure increase, with significant contributions coming from purchases and other expenses (up $257.7 million or 8.8 percent), employee costs (up $125.5 million or 9.7 percent), and depreciation (up $112.4 million or 9.7 percent). The main contribution to the increase in annual operating revenue came from general rates (up $242.6 million or 7.9 percent).

Geoff Bascand 16 September 2009
Government Statistician