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Operating deficit for local authorities

Operating deficit for local authorities – Media release

13 December 2013

Local authorities had an operating deficit in the September 2013 quarter, Statistics New Zealand said today. After adjusting for seasonal effects, spending exceeded income by $39 million.

“Local authorities had increases in both income and spending this quarter but overall, they spent more than they took in,” local government statistics manager Peter Gardiner said.

Operating income (funding earned for core services) for the September 2013 quarter was $2.0 billion, up $6 million (0.3 percent) from the June 2013 quarter. Operating expenditure (spending on core services) was $2.1 billion during the same period, up $15 million (0.7 percent).

The rise in operating income was mainly due to an increase in rates income (up $69 million). This rise was mostly offset by falls in investment income (down $51 million) and regulatory income and petrol tax (down $16 million).

The rise in operating expenditure was mainly due to increases in purchases and other operating expenditure (up $20 million), and interest expenditure (up $4 million). There were decreases in employee costs (down $7 million) and depreciation (down $3 million).

Local authority statistics are quarterly accounting-based estimates of the money local authorities in New Zealand earn and spend on their core business. As of today’s release, the statistics are published in tables only, without a commentary.

View the tables from the 'Downloads' box or from Local authority statistics tables.

LocalAuthorityStatisticsSep13qtrMR.pdf

lassep13qtrtables.xls

ENDS

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