Selwyn Mayor Lydia Gliddon says the council's $104m surplus “is not cash” sitting in the bank of the country's fastest growing district.
By Jonathan Leask for Local Democracy Reporting
The Canterbury council's annual report tells a story of growth, with almost 3000 building consents issued across the financial year and millions of dollars in developer contributions.
Gliddon said she was pleased to get the council's annual report adopted on time this week.
“Especially when we transferred a major asset [three waters services] out of the organisation, which has been a bumpy ride.”
It is the first time district council has adopted its annual report on time in at least eight years, according to commercial and corporate services executive director Allison Sneddon.
The report provides an audited account of a council's finances, spending, projects and performance.
Local authorities are required to adopt an annual report by October 31.
Selwyn reported a $104m operating surplus in 2025/26, while its southern neighbours Ashburton also adopted its annual report this week with a $2.869m deficit.
Gliddon said the surplus “is not cash” and should not be interpreted as $104m sitting in the bank.
It is an accounting measure of revenue exceeding expenditure and reflects infrastructure handed over by developers and contributions towards future growth, she said.
The council received $78m in vested assets - infrastructure handed over to the council by developers as subdivisions were completed - $51m more than budgeted, which highlights the scale of new development across the district.
A total of $44m in development contributions was almost double what was budgeted, with 2,973 building consents issued in the year.
Selwyn also received $9.2m more in fees and charges than budgeted, all contributing to exceeding the budgeted surplus by $26.9m.
The personnel costs were $3.5m below budget, driven by the vacant roles filled by contractors and the reduction in staff numbers with the transfer to Selwyn Water Limited – the Council Controlled Organisation in charge of three water services.
The 616 staff cost $50.66m while the council made six severance payments totalling $108,200.
Debt dropped from $231.8m to $195.9m.
The district council ended the year with an operating deficit of $2.869m.
Its total revenue was $2.69 million above the budgeted $99.09 million, from increased income from rates revenue, development and financial contributions, and fees and charges.
Operational expenditure was $13.5 million above budget, coming in at $104.6m, due to higher-than-expected depreciation and amortisation, along with unbudgeted losses on asset disposals.
Personnel costs came in at $22.65m, which was $291,000 over budget.
The staff headcount increased from 303 to 312.
The council spent $37.2m on capital projects, exceeding its 36.3m budget, largely by catching up on delayed drinking water and wastewater projects (18.2m).
Roading costs came in at $13.1m, including resurfacing 86km of sealed roads, rebuilding sealed roads and grading 8,127km of unsealed roads
The council issued 281 building consents for new housing, up 38% from 204 the previous year.
During the year, the council kerbside collection picked up 5198 tonnes of rubbish (red bin) and 905 tonnes of recycling (yellow bin).
The 530 tonnes of recyclable glass (green crate) were 50 tonnes less than the previous year – a decrease for the fourth year running.
– Local Democracy Reporting is local body journalism co-funded by RNZ and NZ On Air
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