Local authorities show small operating deficit
Local authorities show small operating deficit – Media release
16 September 2013
Local authorities had an operating deficit in the June 2013 quarter, Statistics New Zealand said today. After adjusting for seasonal effects, expenditure exceeded income by $24 million.
"The operating deficit this quarter was caused by local authorities' expenses increasing more than their income," local government statistics manager Peter Gardiner said.
Operating income (funding earned for core services) for the June 2013 quarter was $2.0 billion, up $28 million (1.4 percent) from the March 2013 quarter. Operating expenditure (spending on core services) increased during the same period by $68 million (up 3.5 percent).
The rise in operating income was due to an increase in investment income (up $85 million). This rise was partly offset by falls in rates (down $36 million) and current grants, subsidies, and donations income (down $15 million).
The rise in operating expenditure was mainly due to increases in purchases and other operating expenditure (up $39 million), and employee costs (up $13 million). There were also increases in interest expenditure (up $8 million) and depreciation (up $8 million).
Local authority statistics are quarterly accounting-based estimates of the money local authorities in New Zealand earn and spend on their core business.
For more information about these statistics:
-Visit Local Authority Statistics: June 2013 quarter