Independent report confirms South Taranaki’s strong financial position

South Taranaki District Council, as part of its annual review, received a strong result from S&P Global Ratings, with the internationally recognised agency affirming Council’s high AA- rating and stable outlook.

The independent report released by S&P Global highlights the Council’s exceptional liquidity, sound financial management, and strong long-term planning as key strengths which put it in a strong financial position and well placed to support the community now and into the future.

South Taranaki District Mayor Phil Nixon says the rating reflects the Council’s commitment to responsible stewardship of public funds while continuing to invest in essential infrastructure.

“This is a great result and a strong endorsement of the way we manage the district’s finances and the work we’re doing to set South Taranaki up for the future.”

“To have independent global experts recognise the strength of our financial management shows we are balancing investment in critical infrastructure with long-term financial sustainability,” he says.

A key strength identified in the report is the Council’s strong financial buffer, supported by its Long-Term Investment Fund, which holds around $151 million in assets. This provides flexibility to respond to unexpected events while continuing to invest in core services.

S&P also highlighted the Council’s careful approach to spending. Strong planning, disciplined budgeting and prudent borrowing means the Council can invest in important infrastructure, including water services, in a way that is controlled and sustainable.

Mayor Nixon says this reflects a balanced approach. “We are making smart investments in our district while keeping a tight focus on financial sustainability. This report shows we’re getting that balance right.”

While the report notes some challenges, including a smaller population and concentrated economic base, it finds these are being managed well. The stable outlook signals confidence in the Council’s ability to continue delivering for the community.

Mayor Nixon said the Council remains focused on delivering for the community.

“Our priority is making sure we continue to provide reliable services, invest wisely, and keep Council finances strong for the benefit of current and future generations.”

ENDS

Key strengths highlighted in the report

The report identifies several areas where South Taranaki is performing strongly:

• Exceptional liquidity position
  The Council’s Long-Term Investment Fund (LTIF), valued at approximately $151 million, provides a significant financial buffer and flexibility.
• Strong financial management and transparency
  Independent analysis notes high levels of transparency and robust long-term budgeting practices.
• Predictable and supportive system of local government
  New Zealand’s institutional framework continues to support Council decision-making and financial stability.
• Stable outlook
  The “stable” rating outlook reflects confidence that the Council will continue to manage its finances prudently over the coming years.