Local Authority Expenditure Rises

Local authorities' seasonally adjusted expenditure increased 6.0 percent in the June 2005 quarter, Statistics New Zealand said today. Total expenditure for the June 2005 quarter was $1,283.9 million, up $72.8 million compared with the March 2005 quarter.

Depreciation showed the largest increase of the expenditure items, rising $35.9 million (15.1 percent), from the March 2005 quarter result, to reach $273.0 million. Several councils reported the depreciation increase was due to upward revaluation of fixed assets, especially infrastructure assets such as roads, water supply, and sewerage and stormwater systems. Some lower North Island councils stated that payments for goods and services, grants and donations and all other expenditure increased as a result of flood-related costs. In the June 2005 quarter, other increases came from interest paid (up 5.3 percent ), purchases of goods and services, grants and donations (up 4.1 percent) and employee costs (up 2.9 percent).

Total operating revenue for the June 2005 quarter was $1,286.4 million, an increase of 5.1 percent ($62.4 million) compared with the March 2005 quarter. The increase was mainly due to a $22.2 million rise in investment income, a $13.0 million increase in sales of goods and services and all other income, and a $28.5 million rise in rates, petrol tax, licence fees and fines. This was partly offset by a marginal decrease in government grants and subsidies (down $1.3 million). Overall, local authorities produced a combined operating surplus of $2.5 million in the June 2005 quarter. The operating surplus for the March 2005 quarter was $12.9 million.

Brian Pink
Government Statistician

ENDS

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