Local authorities show quarterly deficit

Local authorities show quarterly deficit

16 June 2014

Local authorities had an operating deficit in the March 2014 quarter, Statistics New Zealand said today.

After adjusting for seasonal effects, expenditure exceeded income by $79.8 million.

“A drop in income coincided with a rise in spending, which led to the deficit this quarter,” local government statistics manager Michele Lloyd said.

Operating income from core services for the March 2014 quarter was just under $2.0 billion. This was a fall of 3.0 percent from the December 2013 quarter. Operating expenditure on core services was $2.1 billion (up 3.3 percent) in the same period.

A drop in dividends was the main cause of the drop in operating income. Dividend income fell $40.9 million from the December 2013 quarter to the March 2014 quarter. Other contributions to the fall in operating income were current grants, subsidies, and donations (down $16.6 million), rates income (down $12.6 million), and sales income (down $7.1 million).

Operating expenditure rose mainly due to purchases and other operating expenditure (up $63.8 million). There were also increases in depreciation (up $3.2 million) and employee costs (up $1.6 million).

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

For more information about these statistics:
• Visit Local Authority Statistics: March 2014 quarter – tables
ends

© Scoop Media