Selwyn District Council recorded a strong financial result, posting a $28.7 million operating surplus, but rising infrastructure costs and population growth have pushed borrowing to record levels.
The council’s audit and risk committee received the 2024/25 annual report, which outlines the council’s performance over the past financial year, and has recommend the council adopt it later this month.
The report highlighted the $28.7m surplus was well above the budgeted $16.9m, which the report said was “driven largely by fees and charges coming in $6.3m above budget” and vested assets transferred by developers.
Selwyn is the country's fastest growing region with large subdivisions being built in Rolleston and Lincoln.
The council's total revenue reached $252.7m, around $13.6m above budget, which included $115.3 m (45%) from rates.
Behind the positive figures, the district’s rapid expansion stretched its finances.
Net borrowings climbed to $231.8m, up sharply from $157.6m the previous year, as the council accelerated major water, transport, and community projects to keep pace with Selwyn’s growth.
There was 134.5m of capital expenditure, including the Ellesmere wastewater pipeline, while operating expenditure was $224m, just above the budget of $222.2m.
Council’s strategy, engagement & capability executive director Steve Gibling recognised the new council, is signing off the decisions of the previous council.
“We’re asking you to look back into something that some of you have not had input into.”
Independent committee chairperson Analisa Elstob said it was exciting day as after five years on the committee “this is the first time we have adopted on time”.
“And we also have a clean bill of health.”
Local authorities are required to adopt an annual report for each financial year within four months of the end of the financial year - by October 31.
Elstob noted the report was ready but with the elections its presentation was pushed back into November.
Independent member Bruce Gemmell said the council’s long-term plan and annual plans are the “contract with the community” and the report shows how it performed.
He believes it should be reporting on its performance more frequently than once a year, suggesting it could be utilising AI technology for “a dynamic reporting process”.
Gibling said it is something the council is looking to deliver.
“We will be looking to bring more of a balanced performance report, in public, to the community, on a regular basis.
That reporting won’t “just talk about how we have spent money and how we gathered the money, but what that money has goes to fund, what services we provided, what experiences were provided for our community, what infrastructure we have built”.
Mayor Lydia Gliddon said the new council is intent on making the reporting more friendly to ratepayers than a 140-page document.
She said the finance and performance committee would step into that space.
The annual report provided further insight for the new-look council as it undertakes a series of what Gliddon has called deep dives into council business that will lead to developing the annual plan.
The annual report is scheduled to come to the council for adoption on November 26.
