The information in this Hot Off The Press is based on data from the Quarterly Local Authority Survey. Information for the latest six quarters is provisional until the publication of the results from the annual Local Authority Census.
While rates, dividends, and depreciation are not seasonally adjusted, all other quarterly results are seasonally adjusted unless otherwise stated. Annual results are also not seasonally adjusted. Revenue and expenditure exclude non-operating and extraordinary transactions.
Quarterly operating surplus
Local authorities recorded a $51.0 million surplus in operating revenue over operating expenditure in the December 2008 quarter. This was up $29.7 million compared with the September 2008 quarter surplus but down $13.5 million compared with the December 2007 quarter.
Quarterly operating revenue
Total operating revenue for the December 2008 quarter was $1,689.6 million, up $69.4 million (4.3 percent) compared with the September 2008 quarter. The increase was mainly due to increases in income from investment (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). Operating revenue from sales of goods and services and all other income increased by $4.1 million (1.5 percent) and regulatory income and petrol tax increased by $0.6 million (0.6 percent).
Total operating revenue increased by $111.5 million (7.1 percent) between the December 2007 and December 2008 quarters. This increase was mainly due to increases in rates (up $72.3 million or 8.1 percent) and government grants and subsidies (up $55.1 million or 28.5 percent). Regulatory income and petrol tax was down $2.1 million (2.0 percent) and investment income was down $14.6 million (13.6 percent). Sales of goods and services and all other income marginally increased by $0.8 million (0.3 percent).
Total investment income
Total investment income in the December 2008 quarter was $92.7 million, up $28.5 million (44.5 percent) compared with the previous quarter. This increase was due to a $27.9 million increase in dividend revenue which is typical for a December quarter. Interest revenue increased marginally by $0.7 million to $46.4 million. Interest revenue is seasonally adjusted, while dividend revenue is not.
Total investment income in the December 2008 quarter decreased $14.6 million compared with the same quarter in 2007. This decrease was mainly due to a decrease in dividend revenue by $14.7 million. Interest income was up marginally by $0.1 million.
Quarterly operating expenditure
Total operating expenditure in the December 2008 quarter was $1,638.5 million, up $39.7 million (2.5 percent) compared with the September 2008 quarter. The increase was mainly due to an increase 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). Interest paid (up $1.1 million or 1.2 percent) and depreciation (up $2.3 million or 0.7 percent) also contributed to the increase in total operating expenditure in December 2008. Depreciation is not seasonally adjusted.
Total expenditure in the December 2008 quarter increased by $125.0 million compared with the same quarter in 2007. The increase can be attributed to increases across all expenditure categories.
Employee costs
Employee costs in the December 2008 quarter were $390.3 million, up $8.8 million (2.3 percent) compared with the previous quarter. Compared to the December 2007 quarter, employee costs increased $38.3 million (10.9 percent).
For technical information contact:
Nalin Patel
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Local Authority Statistics: March 2009 quarter will be released on 17 June 2009.