''No, we have not over-rated and this is not a cash surplus,'' chief executive Michael Ross said.
The council yesterday approved its final annual report for 2013-14 with the surplus before tax, compared with a projected $290,000 deficit it originally budgeted.
Chief financial officer Paul Hope estimated between $250,000 and $300,000 was ''general surplus'', available for reallocation by the council.
That final figure will be available in a report to be provided to the council early next year.
Almost $3 million of the $3.794million surplus was new assets given to the council, including its part of the Alps 2 Ocean cycleway and the North End business park roading and services. In addition, changes in valuations of its assets and depreciation had an effect.
Most of the rest was funding for specific projects which had not been spent and had to remain with those projects.
Mr Ross said most of the total surplus came from Government grants for projects such as the Alps 2 Ocean cycle-way, donations for dedicated projects and assets transferred to the council from completed subdivisions.
In addition, the way the council had to prepare its accounts by law was better suited to large profit-making companies, not district councils.
''So the final reported surplus of $3.8 million has nothing to do with how the council itself performed, but reflects instead that council was given or vested over $2.8 million in new assets to look after.''
The value of the new assets, such as new roads to service new properties, reflected a positive economic environment, Mr Ross said.
Highlights for the past financial year identified by Mr Ross included:Continued development of the Alps 2 Ocean cycleway.
The proposed Observatory Hill retirement village proposed by the council-owned Waitaki District Health Services Ltd.
North Otago Irrigation Company plans to proceed with the stage two expansion of the scheme.
Advancing the North End Business Park and business development in the district.
A greater emphasis on improving rural roads through the Rural Resilience Waitaki Project.
Responding to major changes proposed for earthquake-prone buildings.
