The information in this Hot Off The Press is from the Quarterly Local Authority Survey. Information for the latest four quarters is provisional until the publication of the results from the annual Local Authority Census.
The quarterly results are seasonally adjusted unless otherwise stated. Annual results are not seasonally adjusted. Revenue and expenditure exclude non-operating and extraordinary transactions.
Quarterly operating surplus
Local authorities recorded a $22.7 million surplus in operating revenue over operating expenditure in the June 2008 quarter. This surplus was lower than the $60.1 million surplus recorded in the March 2008 quarter. The June 2008 quarter surplus was down $13.4 million compared with the June 2007 quarter surplus of $36.1 million.
Quarterly operating revenue
Total operating revenue for the June 2008 quarter was $1,569.1 million, down $15.7 million (1.0 percent) compared with the March 2008 quarter. The decrease was due to decreases in rates (down $8.2 million or 0.9 percent), government grants and subsidies (down $8.1 million or 3.8 percent) and regulatory income and petrol tax (down $7.9 million or 7.1 percent). Investment income was up $5.5 million (7.6 percent) and sales of goods and services and all other income was up $2.9 million (1.0 percent).
Total operating revenue increased $102.6 million (7.0 percent) between the June 2007 and June 2008 quarters. This increase was mainly due to increases in rates (up $73.9 million or 9.0 percent), sales of goods and services and all other income (up $20.2 million or 7.5 percent), government grants and subsidies (up $13.5 million or 7.1 percent), and regulatory income and petrol tax (up $10.1 million or 10.8 percent). Investment income was down $15.0 million (16.1 percent).
Total investment income
Investment income in the June 2008 quarter was $78.0 million, up $5.5 million (7.6 percent) compared with the previous quarter. This increase was due to a $9.4 million increase in dividend revenue, which is typical for a June quarter. Interest revenue decreased $3.8 million to $43.2 million. Interest revenue is seasonally adjusted, while dividend revenue is not.
Investment income was down $15.0 million compared with the June 2007 quarter. Dividend revenue contributed $12.1 million and interest revenue a further $2.9 million to this decrease.
Quarterly operating expenditure
Total operating expenditure in the June 2008 quarter was $1,546.4 million, up $21.7 million (1.4 percent) compared with the March 2008 quarter. The increase was mainly due to an increase in depreciation (up 5.4 percent to $328.8 million) and employee costs (up 1.1 percent to $370.0 million) over the March 2008 quarter. Purchases of goods and services, grants and donations, and all other expenditure increased 0.2 percent to reach $772.3 million. Interest paid decreased 1.2 percent (down to $75.3 million) between the March and June 2008 quarters.
Total expenditure increased $116.0 million compared with the June 2007 quarter. Increases were recorded across all the expenditure categories.
Annual operating surplus
The annual surplus for the year ended June 2008 was $158.6 million. This surplus was down by $29.3 million compared with the year ended June 2007 surplus of $187.9 million.
Annual operating revenue
Comparing the June 2007 and June 2008 years, total operating revenue increased $405.4 million (7.0 percent). This increase was mainly due to increases in rates revenue (up $236.4 million or 7.1 percent) and sales of goods and services and all other income (up $91.8 million or 8.9 percent). Regulatory income and petrol tax (up $38.7 million or 10.1 percent), government grants and subsidies (up $27.4 million or 3.6 percent) and total investment income (up $11.1 million or 3.5 percent) all increased compared with the year ended June 2007.
Annual operating expenditure
Total operating expenditure for the year ended June 2008 was up $434.8 million (7.7 percent). Purchases of goods and services, grants and donations, and all other expenditure (up $136.2 million or 4.6 percent) and employee costs (up $133.2 million or 10.3 percent) were the main contributors to this increase. Other increases came from depreciation (up $96.9 million or 8.4 percent) and interest paid (up $68.5 million or 28.4 percent).
For technical information contact:
Nalin Patel
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Local Authority Statistics: September 2008 quarter will be released on 16 December 2008.