FINANCIAL PERFORMANCE REPORT - DECEMBER 2025 · Report

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GENERAL COMMITTEE MEETING                                                         19 JANUARY 2026


of $1.6m.

Council's overall financial performance to 31 December 2025 is summarised in the following table.




Detailed statements on Council's financial performance to 31 December 2025 are outlined in the
following attachments to this report:

Attachment 1 - Statement of Income and Expenditure 31 December 2025
Attachment 2 - Statement of Financial Position 31 December 2025
Attachment 3 - Statement of Changes in Equity 31 December 2025
Attachment 4 - Financial Analytics 31 December 2025
Attachment 5 - Capital Performance 31 December 2025.

The $3.6m full year operating surplus variance comprises a $2.8m general operating surplus from
activities that are funded through Council’s general rate, regulatory fees and sales of goods and
services as well as $1.0m from Council's Waste operations, partially offset by a lower than
anticipated result of -$0.2m from Council's Holiday Park operations as outlined in the following table.




Council has elected to apply National Competition Policy (NCP) reforms to its Waste Management
and Holiday Parks operations which provides greater transparency and assists in removing
anticompetitive conduct while ensuring the best allocation of Council's limited resources. A summary
of the YTD operational performance of these business activities is as outlined in the above table.

Operating Revenue
At 31 December 2025, Council has received 50.5% or $76.9m of its operating revenue budget of
$152.4m with detailed commentary on major variances outlined in the following table.

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GENERAL COMMITTEE MEETING                                                       19 JANUARY 2026




Operating Expenditure
At 31 December 2025, actual operating expenditure was 48.1% or $73.3m of the full year budget of
$152.2m with detailed commentary on major variances outlined in the following table.




Major employee benefit variances by branch are outlined in the following table with the significance
overspend in Infrastructure Planning, Design and Delivery mainly attributable to unbudgeted job
costing expenses that will be reviewed as the year progresses to determine if expenditure can be
attributed to capital works.

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GENERAL COMMITTEE MEETING                                                   19 JANUARY 2026




Major materials and services variances by financial statement category (as reported in Council's
audited financial statements) to 31 December 2025 are detailed in the following table.




Tourism and Economic Development Investment Summary
Council resolved to report on a monthly basis, investment details for tourism and economic
development. Expenditure on Tourism and Economic Development activities at 31 December 2025
is outlined in the below table.

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GENERAL COMMITTEE MEETING                                                         19 JANUARY 2026




Capital Revenue
Capital revenue of $14.8 received to 31 December 2025 comprises cash contributions from
developers of $1.9m and capital grants and subsidies of $12.9m, with the timing of capital grant
receipts generally dependent on the timing of grant conditions and capital works delivery. The timing
of the receipt of developer contributions (both cash and contributed) remains unpredictable.

Major capital grants and subsidies received to 31 December 2025 by project are outlined in the
following table.




Capital Expenditure
At 31 December 2025, actual capital expenditure (excluding commitments) was $19.1m or 20.0% of
Council's $95.8m capital works program. However, when this expenditure is adjusted to exclude
$4.6m of other capital expenses associated with the write off of assets, actual capital expenditure
was $14.5m or 15.1% of the revised capital budget.

Detailed discussion of the progress of the capital works program is provided through a separate
quarterly report by the Infrastructure Team. In the next budget review, Council officers will look to
recast the 2025-26 capital works program to better reflect forecast actual and financial delivery at 30
June 2026. Council officers are also investigating how reporting to Council on the financial and
physical delivery of capital projects can be improved.

Excluding loan redemption payments, donated assets and other capital expenses, the following table
outlines the progress of the capital works program by portfolio at 31 December 2025.

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GENERAL COMMITTEE MEETING                                                           19 JANUARY 2026




Of the total year to date capital expenditure, $2.1m relates to disaster recovery works.

Other Capital Expenses of $4.6m disclosed in the attachments, represents the in-part value of capital
projects that have now been written off through the project now underway to review Council's
excessive WIP balance. In the 2025 financial year, Council incurred expenditure of $10.1m against
this line item with this item to be carefully considered in the development of the 2027 Budget.

At 30 June 2025, Council's Work-In-Progress (WIP) balance was $110.3m or 8.2% of its Property,
Plant and Equipment balance of $1,351.3m. After allowing for asset capitalisation of $14.6m, prior
year asset write-offs of $2.9m and year to date capital expenditure of $13.9m, at 31 December 2025,
Council's WIP balance was $106.7m.

Cash Management and Investment Performance
Total cash on hand at the end of December 2025 was $125.4m. Included in this balance are funds
held in trust of $6.7m with $118.7m being at call. Of the total cash balance at 30 June 2025 of
$125.4m, $30.7m was externally restricted for items such as unexpended levy funds with a further
$25.3m internally restricted for items such as disaster management, waste management and future
asset replacement.

Council's investments continue to be made in accordance with its Investment Policy adopted on 30
June 2025, with funds continuing to be redirected to Queensland Treasury Corporation (QTC) 80.7%
due to the relatively higher interest rates being offered by this institution. Under Council's Investment
Policy, there is no upper limit on the dollar or percentage value that can be invested with QTC.
Council also has significant funds of 19.3% of its total cash holdings invested with other financial
institutions in compliance with Council's Investment Policy. The highest investment in this category
is 15.35% against an upper individual limit of 35.0%. A summary of Council's Investments at 31
December 2025 is outlined in the following table.




Council received $3.2m ($1.2m from Associate - Unitywater) in interest from its investments to 31
December 2025 with a further $0.5m recognised as interest on overdue rates and utility charges.

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GENERAL COMMITTEE MEETING                                                   19 JANUARY 2026



A summary of Council investment performance to the end of December 2025 is outlined in the
following table and graph. As the Bloomberg AusBond Bank Bill Index % had not been released
at the time of the writing of this report, November's figure has been used for comparative
purposes.




As indicated above, at 31 December 2025 Council's total cash balance was $125.4m which is
$24.0m or 23.7% higher than at 31 December 2024 with this increasing cash balance mainly due to
recent ongoing delays to Council's capital works programs and Council's FY2026 year to date
financial performance.

Rates and Utility Charges
Rate Arrears
As outlined in the following table, at 31 December 2025, Council's outstanding rates and utility
charges totalled $7.3m or 6.2% of Council's rates and utility charges base.

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GENERAL COMMITTEE MEETING                                                       19 JANUARY 2026




Following the adoption of the Rates and Charges Debt Management and Recovery Policy on 30
June 2025, these arears are now being actively managed with an outstanding balance of 5% being
targeted. The management of outstanding rates and charges is a key responsibility of Council, as
this process can facilitate access by ratepayers to alternative funding sources (e.g. superannuation
funds) to prevent the loss of key assets.

It should also be noted that rate arrears balances exhibit a consistent semi-annual pattern, rising
after ley periods in July and January and subsequently declining in the months that follow each levy
issuance.




A comprehensive review and audit of arrears balances was undertaken in anticipation of formal
escalation through policy stage gates, subsequent to the January 2026 levy issuance period.

The rates arrears analysis that follows includes only those properties where arrears exceed the
following specified thresholds.



 Classification                     Threshold
 Residential                           $1,000
 Non-Strata Residential                $1,500
 Non-Residential                       $1,000
 Shopping Centres                    $300,000
 Other                                $50,000
 Retirement Villages                  $30,000

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GENERAL COMMITTEE MEETING                                                         19 JANUARY 2026




To prevent identification of individual properties rating categories have been grouped as follows:
   • Residential: Residential, Non-Strata Residential
   • Non-residential: Non-residential, Shopping Centres, Other, Retirement Villages
   • No General Rate Category: Refers to properties that have outstanding rates and charges but
       do not have a general rate category

Measures of Financial Sustainability
While the following table incorporates a revised set of financial sustainability indicators to further
assist in managing Council financial performance, it should be noted that many of the legislated local
government sustainability ratios are designed for annual reporting.




There are no significant emerging risks regarding financial performance at this stage; however,
delays in the delivery of the capital program and the reclassification of WIP projects will impact
Council’s operating surplus, operating cash, total cash expense cover and asset sustainability ratios.

With the exception of the Asset Sustainability Ratio which is under the target value due to the current
makeup of the capital works delivery program, all other ratios exceed target and the ratios adopted
in Budget Review 1.

As expected, Council's cash ratios have again declined slightly in December with this trend to

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GENERAL COMMITTEE MEETING                                                         19 JANUARY 2026


continue until rates and utility charges are collected following the next rates levy issuance.

Questions taken on notice General Committee Meeting 15 December 2025

    •    Councillor Phillips: Contract Liabilities being higher than budget ($14,685 Vs $4,000):
The balance of $14,685 is the balance of contract liabilities as at 30 June 2025. Contract liabilities
are essentially unearned revenue, in our situation this is where council has received a grant amount
in excess of what it has incurred, or obligation met (performance under the contract) in relation to
constructing an asset. We are not entitled to record the grant until the performance obligations are
met (i.e. the work is undertaken), this is measured through the life of the project so that revenue is
recorded as earnt when milestones/obligations are met. This is standard practice with construction
and grants. It does not imply obligations are accumulating faster than expected, it means that works
are only at a particular stage. The grant will be fully recognised when the project is complete, this
aligns to the recording of expenditure. This is the designated accounting treatment under AASB15
(Revenue from Contracts with Customers) and AASB1058 (Income from NFP Entities).

    •    Question from Councillor Wilson: Breakdown of rates
Provided above in the report, please refer to "Rates and Utility Charges" section.


    •    Question from Councillor Finzel: WIP movement and risk
Additional commentary provided in "Capital expenditure" section. Further detail to be provided
through budget workshop proceedings.

    •    Question from Mayor Wilkie: Relating to the whether the $750k movement in rates was a
         single property or a number of properties.
The "Movement in arrears" balance shows every payment and adjustment recorded during the
reporting period. It may also account for several payments made on one property, whether by
payment arrangements or direct debits. The table below highlights the significant changes in
balances during the reporting period. The movement reflects the total payments made on an
individual property within a given period (a reduction of the arrears balance). For example, if a
property makes two payments of $30,000 each in one month, the combined amount of $60,000
would be reported under the “Movement between $50,000 - $100,000” category.

November 2025
 Category                                                  Totals
 Movement in arrears                                     $754,311
 Movements above $100,000                                    1
 Movement between $50,000 - $100,000                         0
 Movement between $10,000 - $50,000                          8
* Payments received from roughly 2,000 properties.

December 2025

 Category                                                  Totals
 Movement in arrears                                     $425,368
 Movements above $100,000                                    0
 Movement between $50,000 - $100,000                         1
 Movement between $10,000 - $50,000                          3

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GENERAL COMMITTEE MEETING                                                          19 JANUARY 2026

* Payments received from roughly 2,000 properties.

      •   Councillor Phillips: Asset management, capital works and renewal:
Please note Attachment 5 (Capital Performance) contains charts on actuals to budget. Further detail
to be provided through budget workshop proceedings.


Link to Corporate Plan
Theme No. 5. - Excellence
This theme focuses on customer experience, financial sustainability, innovation and technology,
levels of service, governance, our employees and volunteers, funding streams and asset
management practices.

Objective 5.2 - Continue to deliver a financially sustainable Council that has the resources
now and into the future to achieve its strategic objectives.
This will be supported through the introduction of enhanced sustainability reporting and performance
indicators, as well as ESG (environment social and governance) accounting practices as guided by
statutory requirements.




Previous Council Consideration
Nil


Finance
To meet its monthly reporting obligations under section 204 of the Regulation 2012, a monthly
financial report is to be provided to Council for its information. This report complies with section 204
of the Local Government Regulation 2012, providing Council with a report on its financial
performance to 31 December 2025 against its Revised Budget for the 2025-26 financial year as
adopted by Council on 21 August 2025.


Risk & Opportunities
Council’s risk register identifies a number of risks that could impact on its ongoing financial
sustainability.

In order to manage and mitigate these risks, Council uses various tools which include monthly
ongoing financial reporting to identify and address emerging issues, conservative budgeting,
compliance with the Financial Sustainability Policy, regular budget reviews, effective liquidity
management (to ensure sufficient fiscal flexibility), as well as adhering to the Reserves and
Restricted Cash policy which requires that Council maintains both a disaster management reserve
and a minimum 3 months cash cover to fund emergent matters.

At 31 December 2025, noting the financial impacts of the reclassification of WIP projects and delays
to the capital works program, there are no other significant identified financial risks that will impact
Council's forecasted financial position at 30 June 2026.




Human Rights

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GENERAL COMMITTEE MEETING                                                            19 JANUARY 2026


Human Rights Compatibility Statement
In developing this Report, the subject matter has been considered in accordance with the
requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter
does not conflict with any human rights and supports a human rights approach to decision making
by Council. Council representatives will endeavour to act and make decisions under this report in a
manner that is compatible with human rights. This report should be read in conjunction with
Council’s Human Rights Policy.




Consultation
External Consultation - Community & Stakeholder
Internal Consultation
Departments consulted:
     Office of the CEO, Mayor &             Community Services               Corporate Services
             Councillors
      Mayor & Councillors             X   Director                    X   Director
 X    Chief Executive Officer             Community Development           Financial Services
      Executive Officers                  Sport & Active Lifestyles       Fleet
      Community Engagement                Arts & Culture                  Revenue Services
      People & Culture                    Community Connection            ICT
      Governance                          Customer Experience             Procurement

                                                                          Commercial Property

      Strategy & Environment              Development & Regulation        Infrastructure Services
 X    Director                        X   Director                    X   Director
      Strategy & Sustainability           Development Assessment          Infrastructure Planning, Design
                                                                          and Delivery
      Economic Development        &       Local Laws                      Civil and Asset operations
      Destination Management
      Environmental Services              Environmental Health            Waste
      Innovation & Digital Hub            Building & Plumbing             Building & Facilities
                                          Property / Permits              Disaster Management