Local Authority Revenue Increases

Local Authority Statistics: December 2005 quarter — 17 March 2006

Local Authority Revenue Increases

Local authorities' seasonally adjusted revenue increased 4.3 percent in the December 2005 quarter, Statistics New Zealand said today. Total revenue for the December 2005 quarter was $1,354.1 million, up $55.6 million compared with the September 2005 quarter.

Investment income showed the largest increase of the revenue items, rising $39.8 million (67.7 percent) from the September 2005 quarter, to reach $98.5 million. This was mainly due to a $39.5 million increase in dividends received. The dividend rise is typical for a December quarter. Sales of goods and services and all other income increased $8.1 million (3.5 percent).

Rates, petrol tax, licence fees and fines increased $5.7 million (0.7 percent), to $857.4 million in the December 2005 quarter, and government grants and subsidies increased by $1.9 million (1.2 percent).

Total operating expenditure for the December 2005 quarter was $1,299.8 million, up $16.9 million (1.3 percent) compared with the September 2005 quarter. The increase was due to a rise in purchases of goods and services, grants and donations, and all other expenditure (up $16.5 million or 2.4 percent), a $0.7 million (0.3 percent) increase in employee costs, and a $1.4 million (0.6 percent) rise in depreciation. The increase was partly offset by a marginal decrease in interest paid (down $1.8 million).

Overall, local authorities produced a combined operating surplus of $54.3 million in the December 2005 quarter, up from $15.6 million in the September 2005 quarter.

Brian Pink

Government Statistician

ENDS

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