Selwyn Council Criticised Over Shrinking Surplus

Monday, 31 March 2025, 7:36 pm
Article: Jonathan Leask - Local Democracy Reporter

A Selwyn District councillor has taken aim at his council, claiming they “failed" in some of their duties following a $17.1 million cost blowout.

The council approved its audited Annual Report for 2023/ 2024 last week - six months later than normal.

Councillor Grant Miller said the delay in the report wasn’t the issue, but rather the large cost increase shown in the report.

The council reported a $5m surplus in the 2023/24 financial year, which was $17.1m less than originally budgeted.

Council staff said this was due to increases in personnel costs ($4m) and other expenses ($10m) like maintenance, building levies, insurance, and software licensing fees.

However, Miller said that showed the council had “failed in some of our duties”.

A blowout year to year in personnel costs and other expenses “seriously questions our cost control”, and “in anyone's language is not good governance”, he said.

Miller declared he would not vote to adopt the annual report without a “management representation letter to governance that the numbers are accurate and correct”.

This wasn't legally required, but he said it was about the process and it had previously occurred.

Council chief executive Sharon Mason said the council's annual report was endorsed by Audit NZ and she was confident that the numbers are “true and correct and accurate”.

Councillor Lydia Gliddon has also aired her concerns about how vulnerable Selwyn had become by relying on “growth keeping us afloat”.

“We need to keep in mind that that might not always be there to keep us afloat.”

Selwyn is one of the highest growth areas, with the booming towns of Rolleston and Lincoln.

Te Taumutu Rūnanga appointed representative Megen McKay said “the achieved performance outweighs the underperformance” and the overall results were something to celebrate.

Mayor Sam Broughton said the annual report is an important moment to see how they are tracking financially.

He welcomed the surplus of $5m, in the context of sharp increases in costs and interest rates compared to the long-term plan budget.

“Because of these unexpected headwinds, the council had to be financially prudent to deliver all our services to the district’s rapidly growing population,” Broughton said.

During the 2023/24 year, interest rate increases from 2.5% to 6% forced a readjustment, along with rapidly rising costs for insurance, audit fees, water utilities, bridges, and roading, Broughton said.

Under the Local Government Act, a local authority must complete an annual report within four months of the financial year's end – that’s usually October.

Selwyn signed it’s 2023/24 report off at an extraordinary meeting at the end of March.

Mason said there had been “a number of challenges” in getting the report signed off.

She explained the council had an extension for its annual report as it had adopted its long-term plan late.

A council spokesperson confirmed that “due to resourcing restraints in the finance team, the council was unable to complete the annual report within this extended timeframe”.

LDR is local body journalism co-funded by RNZ and NZ On Air.

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