Council reports provisional accounting surplus
Media release
WCRC is reporting a provisional accounting surplus of $1.15 million for the 2025/26 financial year reflecting a year of significant infrastructure activity, changing project timelines and ongoing financial pressures.
The result is below the budgeted surplus of $13.48 million, mainly because of delays in major infrastructure projects in Westport. This meant associated government funding was not received or recognised during the financial year as originally planned.
The figures are in the Provisional Financial Report for the year ended 30 June 2026 to be discussed at the Corporate Services Committee meeting of 20 October.
Corporate Services Manager Colin Weeks says the pause in Westport capital works - while project costs were reassessed - affected Infrastructure subsidy revenue delaying project delivery and recognition of subsidy revenue.
“The result highlights the importance of looking beyond the headline surplus figure to understand our overall financial position.
“While we’ve recorded a surplus it must be recognised this includes capital funding and investment gains. It doesn’t fully reflect the cost of delivering our day-to-day services and programmes across the region.”
Despite the lower-than-budgeted result WCRC is financially stable and able to meet its current obligations, says Colin Weeks.
“Cash and cash equivalents were $8.5 million at 30 June 2026 and we are able to meet our cash commitments. Borrowings remained below budget and within approved limits.”
Several factors influenced the year-end result, he says. These included lower government funding receipts than budgeted, higher compliance and enforcement costs, additional Te Tai o Poutini Plan hearings process costs, and an unbudgeted refund for Franz Josef ratepayers relating to historic rates issues.
“These pressures were partially offset by stronger-than-expected investment returns and positive results from our commercial services operations.”
Council's investment portfolio performed strongly during the year delivering returns approximately $1.3 million above budget.
WCRC acknowledges operating cost pressures remain in several areas and careful financial management is required as work begins on the next Long term Plan.
Its focus remains on maintaining essential services, delivering planned infrastructure projects, and ensuring finances remain sustainable and affordable for West Coast ratepayers.
