FINANCIAL PERFORMANCE REPORT SEPTEMBER 2026 · Report

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ORDINARY MEETING                                                               15 OCTOBER 2026


Detailed statements on Council's financial performance to 30 September are also outlined in the
following attachments to this report:

Attachment 1 - Statement of Income and Expenditure 30 September 2026
Attachment 2 - Statement of Financial Position 30 September 2026
Attachment 3 - Statement of Changes in Equity 30 September 2026
Attachment 4 - Financial Analytics 30 September 2026
Attachment 5 - Capital Financial Performance 30 September 2026

The $2.2M favourable operating variance at 30 September 2026 comprises a $1.8M operating
surplus from Council's core operating activities and a $0.4M operating surplus from Council's
Business Activities.




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 year-to-date operational performance of these business activities is as outlined in the above
table.

Operating Revenue
At 30 September 2026, Council had received $71.9M or 43.8% of its operating revenue budget of
$164.2M.

The favourable operating variance of $1.9M is mainly attributable to:
•   higher than anticipated rates $0.4M and waste utility charges $0.2M
•   higher than anticipated investment earnings (interest) arising from higher than budgeted average
    cash holdings $1.0M and higher than anticipated interest on overdue rates and charges $0.2M
Operating Expenditure
At 30 September 2026, actual operating expenditure was $40.0M or 24.3% of the full year operating
expenditure budget of $164.2M.

The favourable operating variance of $0.4M is mainly attributable to:
•   lower than anticipated employee benefits $0.3M
•   lower than anticipated materials and services costs of $0.1M
Operating expenditure is currently tracking within acceptable budget parameters, with no material
areas of concern identified. Variances remain largely driven by timing differences and expenditure
profiling. As the financial year progresses, further detailed analysis will be provided to identify
emerging trends and assess whether any underlying expenditure pressures require management
attention.

Tourism and Economic Development Investment
Council has resolved to report on a monthly basis, investment details for tourism and economic

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ORDINARY MEETING                                                                 15 OCTOBER 2026


development, with expenditure on Tourism and Economic Development activities to 30 September
2026 outlined in the below table.




Capital Revenue
Capital revenues of $6.2M received to 30 September 2026 mainly comprise capital grants and
subsidies of $6.1M, with the timing of capital grant and subsidy receipts generally dependent on
grant conditions and the timing of capital works delivery.

The timing of developer contributions, including both cash contributions and contributed assets,
remains inherently uncertain.

A summary of major capital grants and subsidies received to 30 September 2026 by capital works
project is outlined in the following table.




Capital Expenditure
At 30 September 2026, actual capital expenditure (excluding contributed assets, loan redemption
payments and commitments) was $12.7M or 12.7% of Council's $99.7M capital works program.

Details on specific project expenditure variances will be provided through future reporting as budgets
are adjusted to more accurately reflect anticipated project delivery timelines. Commencing with the
October 2026 Financial Performance Report, detailed quarterly analysis from the Capital Works
Executive Committee will be incorporated, including revised graphical presentations and enhanced
commentary to provide greater visibility of capital program outcomes and the underlying drivers of
project delivery performance and expenditure trends.

Detailed discussion of the progress of the capital works program is also provided through a separate
quarterly report.

Cash Management and Investment Performance
Total cash on hand at the end of September 2026 was $164.6M, with $6.7M of this balance held in
trust.

A summary of Council's investments at 30 September 2026 is outlined in the following table.

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ORDINARY MEETING                                                               15 OCTOBER 2026




Council's investments continue to perform well against agreed benchmarks with a summary of
Council investment performance to the end of September 2026 outlined in the following table (rolling
6 monthly performance) and graph (rolling 12 monthly performance).




As outlined in the following graph, on a rolling 12-month basis, Council's total cash holdings have
increased by $32.9M or 25.0%.

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ORDINARY MEETING                                                                  15 OCTOBER 2026



Rates and Utility Charges
To the end of September 2026, Council had collected $57.6M or 50.5% of its $114.0M rates and
utility charges budget.

Rate Arrears
As outlined in the following table, at 30 September 2026, total rates arrears were $11.7M or 9.2%,
with arrears reducing by $3.9M during September.

Key Metrics - Total arrears

 Category                                        Totals

 Total rate arrears                         $11,717,752

 2026/27 Rates Revenue*                    $127,000,000

 Rates arrears %                                 9.2%

 Rates arrears % (prior month)                   12.3%

 Movement in arrears                        $3,933,622
* Estimated 2026/27 revenue is based on July 2026 levy revenue multiplied by two, rounded to the nearest
million dollars.

It should also be noted that rate arrears balances follow a predictable six-monthly cycle, increasing
after the July and January levy periods and decreasing in the months that follow.

In preparation for the commencement of debt recovery action under Council’s revised Rates and
Charges Debt Management and Recovery Policy, arrears balances were reviewed and
approximately 800 ratepayer accounts with outstanding rates and charges of around $7.0M are
expected to be referred to Council’s appointed recovery agent during October 2026. The initial
referral process has been targeted towards long-standing and significant arrears that are at least 12
months overdue, while excluding ratepayers with approved payment arrangements or active
hardship arrangements, thereby balancing the objectives of the Policy with principles of fairness,
equity and efficient resource allocation.
The subsequent analysis includes only those properties that exceed the 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

The below tables detail the composition of outstanding rates balances.


 Category                                                   Totals
 Total rate arrears                                       $11,717,752
 Arrears above Policy thresholds (refer below)            $10,900,732
 Arrears below thresholds                                  $551,297

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ORDINARY MEETING                                                                     15 OCTOBER 2026




    Age                                     Amount owing            # Properties

    Within 6 months                            $1,471,955               761
    Within 1 year                                $573,899               296
    Within 3 years                             $4,221,371               895
    Within 6 years                             $2,977,993               281
    Older than 6 years                         $1,655,515               64
    Total                                      $10,900,732             2,297

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

    By category                      Amount           Percentage      # Properties

    Residential                    $9,501,465               87.2%        2,160
    Non-Residential                $1,310,652               12.0%         133
    No General Rate Category         $88,616                0.8%              4

    Total                          $10,900,732              100%         2,297


Measures of Financial Sustainability
As previously agreed with Council, reporting on the relevant measures of financial sustainability now
occurs on the financial results for September, December, March and June of each financial year.

The relevant measures of financial sustainability to 30 September 2026 with commentary against
each measure are outlined in the following table.

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ORDINARY MEETING                                                                 15 OCTOBER 2026




There are no issues of concern associated with the above results. As the financial sustainability
measures are designed to assess Council's position as at 30 June, interim reporting may not be fully
representative of the expected year-end outcome. Any measures currently outside their adopted
benchmark are primarily attributable to timing differences and are expected to return to target levels
as forecast budget assumptions are progressively realised throughout the 2026/27 financial year.

Removal of Credit Card Surcharge Service Fee
Council's 2026/27 Fees and Charges Schedule and associated systems have now been adjusted to
exclude any reference to Credit Card Surcharge Service Fees.


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.




Previous Council Consideration
Adoption of the 2026/27 Budget at Council's Special Meeting on 23 June 2026 and adoption of the
2026/27 Revised Budget (BR1) at Council's Ordinary Meeting on 20 August 2026.

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ORDINARY MEETING                                                                   15 OCTOBER 2026


Finance
To meet its monthly reporting obligations under Section 204 of the Regulation, a monthly financial
report is to be provided to Council for its information.

This report complies with section 204 of the Regulation, providing Council with a report on its financial
performance to 30 September 2026 against the Revised Budget for the 2026/27 financial year, as
adopted by Council on 20 August 2026.


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.

Financial results at this stage of the financial year continue to be influenced by the timing of carry
forward works, grant receipts and expenditure profiling. These matters will continue to be monitored
and refined through future monthly reporting and budget review processes.

At 30 September 2026, no significant financial risks have been identified that are expected to
materially impact Council's financial performance for 2026/27. Ongoing monitoring will continue
through monthly reporting and budget review processes.


Human Rights
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
No external community or stakeholder engagement was undertaken in the development of this
report.

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ORDINARY MEETING                                                                     15 OCTOBER 2026


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 Connection        x   Financial Services
      Executive Officers                  Sport & Active Lifestyles       Revenue Services
      Community Engagement                Arts & Culture                  ICT
      Governance                          Customer Experience             Procurement

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

                                                                          Fleet