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.
Quarterly operating results
Local authorities recorded a $63.2 million deficit in the March 2010 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 March 2010 quarter was the result of total operating revenue of $1,711.8 million and total operating expenditure of $1,775.0 million. The operating deficit in the March 2010 quarter was $39.5 million larger than in the December 2009 quarter, when the deficit was $23.7 million.
The actual (not seasonally adjusted) deficit in the March 2010 quarter is $23.5 million. This is $43.1 million smaller than in the December 2009 quarter, when the deficit was $66.6 million.
Operating revenue
Total operating revenue for the March 2010 quarter was $1,711.8 million, down $39.6 million (2.3 percent) compared with the December 2009 quarter. Contributions to the fall in operating revenue came from decreases in:
- investment income, down $36.1 million (37.5 percent)
- sales of goods and services, down $9.5 million (3.3 percent)
- government grants and subsidies, down $5.9 million (2.4 percent)
- regulatory income and petrol tax, down $3.7 million (3.2 percent).
The fall in investment income was driven by a decrease in revenue from dividends (down $35.5 million).
Partly offsetting these falls was a rise in rates, up $15.7 million.
Total operating revenue increased by $63.3 million (3.8 percent) from the March 2009 quarter to the March 2010 quarter.
Investment income
Investment income for the March 2010 quarter was $60.3 million, down $36.1 million (37.5 percent) compared with the December 2009 quarter.
The fall in investment income was driven by a decrease in revenue from dividends (down $35.5 million). Revenue from dividends, which is not seasonally adjusted, has peaked in the December quarter of each of the last four years due to the timing of payments of dividends to local authorities from Council Controlled Organisations such as airports and water providers.
Interest revenue fell (down $0.6 million) from the December 2009 quarter to the March 2010 quarter.
Sales of goods and services
Income from sales of goods and services in the March 2010 quarter was $274.4 million, down $9.5 million (3.3 percent) compared with the December 2009 quarter.
Revenue from sales of goods and services includes income from metered water, refuse collection and disposal, commercial and social housing rentals, parking fees, and other sources.
Sales of goods and services decreased $24.4 million (8.2 percent) from the March 2009 quarter to the March 2010 quarter.
Rates
Rates income for the March 2010 quarter was $1,020.8 million, up $15.7 million (1.6 percent) compared with the December 2009 quarter.
Rates are now $64.4 million (6.7 percent) higher than in the March 2009 quarter. Revenue from rates is not seasonally adjusted.
Operating expenditure
Total operating expenditure for the March 2010 quarter was $1,775.0 million and remains unchanged from the December 2009 quarter.
Downward contributions to the operating expenditure for the March 2010 quarter came from falls in:
- employee costs, down $9.9 million (2.4 percent)
- interest paid, down $0.2 million (0.2 percent).
Upward contributions to the operating expenditure for the March 2010 quarter came from rises in:
- depreciation, up $7.1 million (1.8 percent)
- purchases of goods and services, up $3.1 million (0.3 percent).
Total operating expenditure increased by $64.5 million (3.8 percent) from the March 2009 quarter to the March 2010 quarter.
Employee costs
Employee costs for the March 2010 quarter fell $9.9 million (2.4 percent) to $401.7 million, compared with the December 2009 quarter. This is the first quarterly decrease since the December 2004 quarter when employee costs fell 1.6 percent.
Fifty-seven of the 86 surveyed councils reported falls in employee costs in the March 2010 quarter.
In the March 2010 quarter, employee costs were $11.6 million (3.0 percent) higher than in the March 2009 quarter.
Depreciation
Depreciation for the March 2010 quarter rose $7.1 million (1.8 percent) to $394.4 million, compared with the December 2009 quarter.
In the March 2010 quarter, depreciation was $39.7 million (11.2 percent) higher than in the March 2009 quarter. Expenditure on depreciation is not seasonally adjusted.
For technical information contact:
Lyall Payne or Gareesh Madhas
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Local Authority Statistics: June 2010 quarter will be released on 15 September 2010.