FINANCIAL PERFORMANCE REPORT - DECEMBER 2025 · Report

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