Local authorities' operating deficit increases – Media release

12 December 2014

Local authorities’ operating deficit increased in the September 2014 quarter compared with the previous quarter, as expenditure continued to exceed income, Statistics New Zealand said today.

Expenditure was $214.1 million higher than income (after adjusting for seasonal effects). This follows a similar pattern to previous quarters.

“Local authority income has fallen, but expenditure has continued to rise,” local government statistics manager Gary Dunnet said.

Operating income from core services for the September 2014 quarter was $2.0 billion, down 3.2 percent from the June 2014 quarter. Operating expenditure on core services increased to $2.2 billion, up 4.3 percent from the June 2014 quarter.

The fall in operating income was mainly driven by a fall in investment income (down $154.3 million). Investment income is made up of interest and dividends. Dividends payments typically vary in size and frequency. There were smaller falls in regulatory income and petrol tax (down $3.2 million) and sales and other operating income (down $2.7 million). Rates income, which rose $72.6 million, offset these decreases.

Operating expenditure rose in the September 2014 quarter, mainly due to purchases and other operating expenditure (up $59.9 million). Depreciation (up $13.6 million), employee costs (up $11.5 million), and interest expenditure (up $7.7 million) also increased.

Find more information on local authorities’ financial statistics (including information on individual councils) in Local Authority Financial Statistics: Year ended June 2013. This was released on 23 July 2014 alongside Government Finance Statistics (Local Government): Year ended June 2013.

Ends

For media enquiries contact: Kyle Uerata, Wellington 04 931 4600, info@stats.govt.nz

Authorised by Liz MacPherson, Government Statistician, 12 December 2014

For more information about these statistics:
• Visit Local Authority Statistics: September 2014 quarter
• Open the attached files
LocalAuthorityStatisticsSep14qtr.pdf
lassep14qtrtables.xls

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