The information in this release is from the Quarterly Local Authority Survey. Information for the latest three quarters is provisional until the publication of the results from the annual Local Authority Census.
The quarterly results are seasonally adjusted unless otherwise stated. Quarterly revenue and expenditure exclude non-recurring (non-operating and extraordinary) transactions.
Final data for the year ended June 2007 is now available. Annual data, at a more detailed level than is available quarterly, has been incorporated as a benchmark into the quarterly statistics. Therefore, there are revisions to some of the series shown in tables 1 to 9.
Quarterly results
Local authorities recorded a $72.3 million surplus in operating revenue over operating expenditure in the March 2008 quarter. This was up $10.8 million compared with the December 2007 quarter, when there was a surplus of $61.5 million. The March 2008 quarter surplus was $25.9 million higher than the $46.4 million surplus for the March 2007 quarter.
Operating revenue
Total operating revenue for the March 2008 quarter was $1,599.4 million, up $15.8 million (1.0 percent) compared with the December 2007 quarter. The rise was mainly due to increases in government grants and subsidies (up 9.9 percent to $213.4 million) and rates (up 1.6 percent to $904.6 million). Increases also occurred in regulatory income and sales of goods and services and all other income while investment income declined.
The March 2008 quarter showed an increase of $119.1 million (8.0 percent) in total operating revenue when compared with the March 2007 quarter.---PDF BREAK---
Total investment income
Investment income in the March 2008 quarter was $74.4 million, down $31.1 million (29.4 percent) compared with the December 2007 quarter. A $4.4 million increase in interest revenue was overshadowed by a $35.5 million decline in dividends, which is typical for a March quarter. While interest revenue is seasonally adjusted, dividend revenue is not.
Rates
Revenue from rates increased by 1.6 percent to $904.6 million in the March 2008 quarter from $890.5 million in the December 2007 quarter. This represented an increase of 5.9 percent when compared with the March 2007 quarter. Revenue from rates is not seasonally adjusted.
Operating expenditure
Total operating expenditure in the March 2008 quarter was $1,527.1 million, up $5.0 million (0.3 percent) on the December 2007 quarter. Employee costs rose $14.8 million and depreciation rose by $8.8 million, while interest costs and purchases both declined.
Total expenditure rose $93.2 million compared with the same quarter in 2007. Employee costs and purchases were the main contributors, increasing $35.1 million and $28.1 million respectively.
Annual results
Final results for the year ended June 2007 have been incorporated into the quarterly results. These results show a combined operating surplus of $187.9 million for New Zealand's 86 local authorities. This is up $41.5 million from the year ended June 2006. Operating revenue was $5,823.3 million, while operating expenditure was $5,635.3 million for the year ended June 2007.
Revenue
Annual operating revenue increased 8.3 percent in the year ended June 2007. Increases in general rates (up 8.4 percent to $3,094.0 million), grants, subsidies and levies (up 10.7 percent to $764.6 million) and fees and fines (up 21.8 percent to $353.5 million) were the main contributors to the increase in operating revenue. Water rates (up 18.1 percent to $230.8 million) and sales and other income (up 3.1 percent to $1,035.0 million) also contributed to the increase.
Expenditure
Annual operating expenditure increased 7.7 percent in the year ended June 2007. All expenditure items contributed to this rise with the main contributors being purchases and other expenses and employee costs. Purchases and other expenses rose 5.2 percent to $2,938.1 million while employee costs rose 10.1 percent to $1,299.3 million.
For technical information contact:
Johan van der Schyff
Wellington 04 931 4600
Email: info@stats.govt.nz
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Local Authority Statistics: June 2008 quarter will be released on 18 September 2008.