The information in this Hot Off the Press is compiled from data collected in the quarterly Local Authority Survey. All series have been seasonally adjusted with the exception of rates, dividends, and depreciation. For more information on seasonal adjustment, see the 'Technical notes' section.
The order of the tables attached to this Hot Off the Press has been changed to make it easier to compare published data with percentage movements used in the Local Authority Statistics quarterly release.
Quarterly operating results
Local authorities recorded a $20.2 million deficit in the December 2009 quarter. This deficit excludes non-operating items, such as extraordinary gains or losses and asset revaluations, which are included in the annual local authority results.
The deficit in the December 2009 quarter was the result of total operating revenue of $1,752.0 million and total operating expenditure of $1,772.1 million. The operating deficit in the December 2009 quarter was $45.4 million smaller than in the September 2009 quarter, when the deficit was $65.6 million.
Operating revenue
Total operating revenue for the December 2009 quarter was $1,752.0 million, up $69.2 million (4.1 percent) compared with the September 2009 quarter. The rise in operating revenue was due to the following increases:
- government grants and subsidies, up $26.7 million (11.9 percent)
- investment income, up $26.0 million (37.0 percent)
- rates, up $10.0 million (1.0 percent)
- regulatory income and petrol tax, up $9.3 million (8.6 percent).
The rise in investment income was driven by an increase in revenue from dividends (up $27.9 million).
Partly offsetting these rises were falls in sales of goods and services (down $2.9 million) and interest revenue (down $2.0 million).
Total operating revenue increased by $102.1 million (6.2 percent) from the December 2008 quarter to the December 2009 quarter.
Government grants and subsidies
Government grants and subsidies income for the December 2009 quarter was $251.3 million, up $26.7 million (11.9 percent) compared with the September 2009 quarter. Government grants and subsidies support local and regional infrastructure such as roading, rail and bus services along with civil defence, sport and recreation, and the arts.
Government grants and subsidies increased $34.6 million (15.9 percent) from the December 2008 quarter to the December 2009 quarter.
Investment income
The rise in investment income was driven by an increase in revenue from dividends (up $27.9 million), which was partly offset by a fall in interest revenue (down $2.0 million). Revenue from dividends has peaked in the December quarter of each of the last four years.
Operating expenditure
Total operating expenditure for the December 2009 quarter was $1,772.1 million, up $23.7 million (1.4 percent) compared with the September 2009 quarter.
Upward contributions to operating expenditure in the December 2009 quarter came from:
- depreciation, up $10.8 million (2.9 percent)
- employee costs, up $8.5 million (2.1 percent)
- purchases of goods and services, up $4.6 million (0.5 percent).
Partly offsetting these upward contributions was a fall in interest paid, down $0.2 million.
Total operating expenditure increased by $96.0 million (5.7 percent) from the December 2008 quarter to the December 2009 quarter.
Depreciation
Depreciation for the December 2009 quarter rose $10.8 million (2.9 percent) to $387.3 million, compared with the September 2009 quarter. In the December 2009 quarter, depreciation was $44.9 million (13.1 percent) higher than in the December 2008 quarter.
Employee costs
Employee costs for the December 2009 quarter rose $8.5 million (2.1 percent) to $412.9 million, compared with the September 2009 quarter. In the December 2009 quarter, employee costs were $26.4 million (6.8 percent) higher than in the December 2008 quarter.
For technical information contact:
Lyall Payne or Gareesh Madhas
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Local Authority Statistics: March 2010 quarter will be released on 16 June 2010.