Local Government Sector Profile
Local government promotes the well-being of local communities.
There are 78 local authorities comprising 11 regional councils and 67 territorial authorities (unitary authorities, city and district councils).
Additionally, many territorial authorities also have one or more Community Boards. These boards are filled largely by election, though territorial authorities have the right to appoint a minority of the members, to help represent and advise council on community views.
Local authorities vary considerably in size. At the previous Census of Population and Dwellings (March 2006) the largest regional council was Auckland Region (population 1,216,900), the smallest was West Coast Region (population 31,100). Territorial and unitary authorities ranged from 367,734 (Auckland City) to 726 (Chatham Islands). The average population for territorial authorities was 50,498 but this was skewed by several very large territorial authorities. The median population for territorial authorities was 29,645.
Local Government Finance
As of June 2010 the 85 local authorities owned assets with a combined value of $103 billion, and owed some $9.6 billion in liabilities (accounts payable, term debt and the like).
The “balance sheet” for local government as at 30 June 2010 shows the following in ($000):
| Assets | Liabilities and Public Equity | ||
|---|---|---|---|
| Cash and bank deposits | 806,152 | Current debt | 1,632,813 |
| Other current assets | 1,746,472 | Other current liabilities | 1,809,700 |
| Total current assets | 2,552,624 | Total current liabilities | 3,442,513 |
| Land and buildings | 18,742,595 | Term debt | 5,384,045 |
| Infrastructural assets | 70,896,485 | Other non-current liabilities | 773,894 |
| Other fixed assets | 2,668,714 | Total non-current liabilities | 6,157,939 |
| Total fixed assets | 92,307,793 | Total liabilities | 9,600,452 |
| Investment | 6,732,796 | ||
| Other non-current assets | 1,318,055 | ||
| Total non-current assets | 100,358,644 | Total public equity | 93,310,815 |
| Total assets | 102,911,268 | Total liabilities and public equity | 102,911,268 |
Local Government Income
In the year ended 30 June 2010, local government received some $6.9 billion in operating income (GST exclusive). Around 61 per cent of this came from rates, 11 per cent from central government assistance, 5 per cent from investments, 7 per cent from fees and fines, and 16 per cent from other sources.
Local Government Expenditure
At the same time local authorities spent $7.1 billion on operations. Of this, 43 per cent went towards purchasing goods and services ($3.1 billion), 23 per cent on employee costs ($1.6 billion), 21 per cent on depreciation & amortisation ($1.5 billion), 8 per cent on grants and subsidies ($587 million) and 5 per cent on interest expenses ($378 million).
The chart below shows what local government spent its money on during the year to 30 June 2010. Roading (local roads and bridges) made up the largest single expenditure category, accounting for 17 per cent of operating expenditure ($1.2 billion), and council support services expended the second largest portion at 19 per cent ($1.4 billion).
Membership, Elections and Governance
Regional councils, territorial and unitary authorities are all made up of elected members.
Regional Councillors elect regional council chairpersons from their own ranks at their first meeting after elections. City and district council mayors are elected by public votes for mayoral candidates in local authority elections.
Local elections are held once every three years, on the second Saturday in October. The most recent local elections were held on Saturday 09 October 2010.
All local authorities introduced postal voting during the 1990s. The average voter turnout at the 2007 territorial authority elections was 52 percent – with the highest turnout being 67 percent and the lowest 34 percent. The average voter turnout at the 2004 regional council elections was 43 percent – with the highest turnout being 57 percent and the lowest 37 percent.
Fourteen(16%) of the 85 Mayors and Chairs elected in 2007 were female.
Local authorities are largely free to set their own meeting schedules, governance structures and the like. Many councils operate one or more council committees to consider particular issues before being heard by the full council. Most councils operate on either a monthly or six-weekly meeting schedule of committee meetings. In 2004 the median number of meetings in local authorities was 36, with the highest number being 111.
A report of the 2010 election statistics for territorial authorities (district and city councils), regional councils, district health boards and licensing trusts, prepared by the Research & Evaluation Unit of the Department of Internal Affairs, will be made available on this website by 01 July 2011.
