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Local Authority Expenditure Continues to Increase

Embargoed until 10:45am – 18 September 2006

Local Authority Expenditure Continues to Increase

Local authorities' seasonally adjusted expenditure increased 2.5 percent in the June 2006 quarter, Statistics New Zealand said today. Total expenditure for the June 2006 quarter was $1,353.6 million, up $32.4 million compared with the March 2006 quarter.

Depreciation showed the largest increase of the expenditure items, rising $20.6 million (8.1 percent) from the March 2006 quarter, to reach $276.0 million. This rise is typical for a June quarter which is the last quarter of the financial year. Employee costs increased $4.5 million (1.5 percent). Purchases of goods and services, grants and donations, and all other expenditure (up 1.0 percent) and interest paid (up 0.5 percent) showed marginal increases.

Total operating revenue for the June 2006 quarter was $1,370.8 million, up $31.1 million (2.3 percent) compared with the March 2006 quarter. The increase was mainly due to a $23.8 million rise in investment income (30.9 percent). Other increases came from government grants and subsidies (up $7.6 million or 5.2 percent), sales of goods and services and all other income (up $10.0 million or 3.8 percent) and regulatory income and petrol tax (up $0.7 million or 0.9 percent). Overall, local authorities produced a combined operating surplus of $17.2 million in the June 2006 quarter, down from $18.5 million in the March 2006 quarter.

Provisional figures for the financial year ended 30 June 2006 show local authorities reporting a combined operating surplus of $119.8 million, down $1.8 million on the June 2005 result. Revenue for the year was $5,339.1 million, up $422.5 million (8.6 percent) compared with the 2005 year. Expenditure increased $424.4 million compared with the year ended June 2005, to reach $5,219.3 million .

Brian Pink
Government Statistician


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