Southland's councils paid out $599,468 in severance in the 2025/26 financial year, with more than half of it going to one person.

Annual reports released by the region's four councils show 10 severance payments were made in the year to June, up from $408,372 across 18 payments the year before, an increase of almost 50 per cent.

Environment Southland made a single payment of $346,037 to its former chief executive, Wilma Falconer, who left the role in August 2025 after more than three years.

On top of the severance, Falconer received $54,741 in accrued leave and $7,534 covering fringe benefit tax on her work car, and she was allowed to keep the car, which had a market value of $8,990.

The details became public only through the regional council's latest annual report. Environment Southland confirmed the payout but did not provide a named spokesperson, and Falconer declined to comment further.

Invercargill made the most payments

Invercargill City Council made seven severance payments totalling $212,100, the most payments of any Southland council. They ranged from a low of $5,025 to a high of $99,059.

Southland District Council made two payments totalling $41,331. Gore District Council made none.

Councils are not required to name the recipients of severance payments in their annual reports, with the exception of chief executives, whose details must be disclosed under the Local Government Act 2002. Falconer was the only recipient identified.

For comparison, Dunedin City Council made nine severance payments totalling $423,689 in the same year.

Mixed financial results

The annual reports also set out each council's operating result for the year. Environment Southland recorded a $9.4 million surplus and Southland District Council a $0.2 million surplus, while Gore District Council posted a $2.5 million deficit and Invercargill City Council an $8.5 million deficit.

The figures were compiled by Local Democracy Reporting from the four councils' annual reports.

Under the Local Government Act, a severance payment is anything a council agrees to give an employee in return for that employee agreeing to end their employment, over and above final salary, holiday pay and superannuation contributions.

The payments were made in a year when the structure of local government in Southland was itself under review, with the Local Government Commission investigating whether the region's four councils should be reorganised.