Annual Report renews financial stability for South Waikato
29 October 2026
On Thursday, 29 October, South Waikato District Council adopted the 2025-2026 Annual Report which outlined a net surplus of $1.7m. An overwhelmingly positive financial result for Council after the second financial year of an ambitious three-year financial plan.
The Annual Report for the 2025-26 period, revealed a result which was $3m better than the deficit budgeted for and a $5.6m improvement on the previous financial year.
Net debt was equivalent to 76 per cent of total revenue, comfortably below both SWDC's self-imposed limit of 150 per cent and the Government prudence benchmark of 175 per cent. Net assets also increased to $746 million, up $142 million on the previous year.
South Waikato Mayor Gary Petley said his Council has managed to "cut the cloth" while maintaining the same levels of service delivery for the community.
"The financial strategy we committed to a few years ago is working, and we're continuing to make progress in getting this Council back on track financially," he said.
"We've been able to achieve significant financial efficiencies at the same time as we have kept the quality and quantum of service to our District, which is a brilliant outcome."
Council also achieved its annual efficiency savings target of approximately $960,000, contributing to improved financial performance while maintaining core service levels.
"Lifting average rates increases in recent years was a tough decision to make, and that's been really hard for the community to absorb, so I want to acknowledge that here as well," said Mayor Petley.
Having struck an 8.9% average rates increase for the 2026-27 financial year, Council remained under the 9% limit it set for year three of the Long Term Plan.
That maintains a trajectory which has SWDC forecasted to sit under the Government's rates capping threshold by the time it comes into effect in 2029.
Petley added that while the result was one to be celebrated, Council is facing a number of tough decisions in the near future which will be required to fund increasing inflationary costs and unbudgeted work, mostly due to Central Government directives and reforms.
"There are significant additional costs on the horizon, primarily stemming from Central Government legislative reform, which will require consideration by the Council as part of the next Long Term Plan," he said.
"It's clear our model – and that of Councils across the country – will need to change, and we will need to continue to review our levels of service and consider what things matter most to our community, in the face of ever-increasing cost pressures."
The year also marked the completion of preparations for the transfer of drinking water and wastewater services to Waikato Waters Limited from 1 July 2026 as part of the Government's Local Water Done Well reforms.
View the draft Annual Report 2025-2026 in the Council agenda here.
