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Wednesday, March 17

Local authorities' operating deficit continues to narrow

Local authorities recorded a seasonally adjusted operating deficit of $20.2 million in the December 2009 quarter, Statistics New Zealand said today.
 
"The deficit this quarter is $45.4 million smaller than the September 2009 quarter deficit of $65.6 million," said government and international accounts manager John Morris.
 
Seasonally adjusted operating revenue increased $69.2 million to $1,752.0 million in the December 2009 quarter. The main contributions to the increase came from government grants and subsidies (up $26.7 million) and investment income (up $26.0 million). The rise in investment income was driven by an increase in revenue from dividends (up $27.9 million).
 
Smaller contributions to the increase in operating revenue came from rates (up $10.0 million) and regulatory income and petrol tax (up $9.3 million). Partly offsetting these rises were falls in sales of goods and services (down $2.9 million) and interest revenue (down $2.0 million).
 
Seasonally adjusted operating expenditure increased $23.7 million to $1,772.1 million in the December 2009 quarter. The most significant contributions to the increase in operating expenditure came from depreciation (up $10.8 million) and employee costs (up $8.5 million).

From the December 2008 quarter to the December 2009 quarter, seasonally adjusted operating revenue increased by $102.1 million (6.2 percent) and operating expenditure increased by $96.0 million (5.7 percent).