FINANCIAL PERFORMANCE REPORT MAY 2026 · Report

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ORDINARY MEETING                                                                     18 JUNE 2026



REPORT
Council's overall financial performance to 31 May 2026 is summarised in the following table.




Detailed statements on Council's financial performance to 31 May 2026 are outlined in the following
attachments to this report:

Attachment 1 - Statement of Income and Expenditure 31 May 2026
Attachment 2 - Statement of Financial Position 31 May 2026
Attachment 3 - Statement of Changes in Equity 31 May 2026
Attachment 4 - Financial Analytics 31 May 2026
Attachment 5 - Capital Performance 31 May 2026.

The $4.4m full year operating variance at 31 May 2026 comprises a $3.2m general operating surplus
from activities that are funded through Council’s general rate, regulatory fees and sales of goods
and services and a $1.2m operating surplus from Council's Business Activities (Waste Management
$1.0m and Holiday Parks $0.2m) 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 Year-to-Date operational performance of these business activities is as outlined in the above
table.

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ORDINARY MEETING                                                                 18 JUNE 2026



Operating Revenue

At 31 May 2026, Council had received $152.2m or 99.2% of its operating revenue budget of $153.4m
with detailed commentary on major variances outlined in the following table.




Operating Expenditure

At 31 May 2026, actual operating expenditure was $136.6m or 89.1% of the full year budget of
$153.3m with detailed commentary on major variances outlined in the following table.

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ORDINARY MEETING                                                                         18 JUNE 2026



Major materials and services variances by financial statement category (as reported in Council's
audited financial statements) to 31 May 2026 are detailed in the following table.




The differences in commentary between the two tables in relation to materials and services is due
to the utilisation of different selection codes within Council's financial system in order to comply with
our external reporting obligations.

In the last week of April 2026, Council officers commenced the recording of the impact of the Middle
East Conflict (the Conflict) on Council's materials and services. To the end of May 2026, an
additional $17k of expenditure was directly attributable to the Conflict.

Tourism and Economic Development Investment

Council resolved to report on a monthly basis, investment details for tourism and economic
development, with expenditure on Tourism and Economic Development activities to 31 May
2026 outlined in the below table.




Details on specific project expenditures within the Tourism and Economic Development cost centres
are outlined in the following table.

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ORDINARY MEETING                                                                     18 JUNE 2026




Capital Revenue

Capital revenue of $27.3m received to 31 May 2026 comprises cash contributions from developers
of $2.3m and capital grants and subsidies of $25.0m, with the timing of capital grant and subsidy
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 assets) remains unpredictable.

A comparison of actual capital grants and subsidies received to 31 May 2026 by capital works
program compared to the current 2025/26 whole year budget is outlined in the following table.




In line with the approved recovery programs for the 2025/26 and 2026/27 financial years, Council
officers are now not anticipating to receive any further recovery payments in the 2025/26 financial

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ORDINARY MEETING                                                                     18 JUNE 2026


year and as indicated above, the receipt of the remaining outstanding grants and subsidies remains
dependent upon the completion of the balance of the 2025/26 capital works program.

Major capital grants and subsidies received to 31 May 2026 by project are outlined in the following
table.




Capital Expenditure

At 31 May 2026, actual capital expenditure (excluding commitments) was $33.3m or 41.2% of
Council's $80.8m revised capital works program.

As shown in the following table, when this expenditure is adjusted to exclude $4.6m of other capital
expenses associated with the write off of assets, loan redemption payments of $1.9m and
contributed assets, actual capital expenditure was $26.8m or 34.3% of the revised capital budget of
$78.1m as outlined in the following table. However, once recovery works are also excluded, at 31
May 2026 financial completion of the remaining capital works program increases to 50%.

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ORDINARY MEETING                                                                        18 JUNE 2026



Of the total year to date capital expenditure outlined above, $2.3m relates to disaster recovery
works. In line with the approved recovery programs for the 2025/26 and 2026/27 financial years,
Council officers are now not anticipating any further significant recovery program expenditure in the
2025/26 financial year. The recovery program has a current year budget of $29.3m.

Other Capital Expenses of $4.6m, as disclosed in the attachments, represent the partial value of
capital projects that have either been written off following the end of their useful lives in accordance
with standard asset management practices, or relate to projects currently under review as part of
Council’s assessment of its work-in-progress balance.

For comparative and discussion purposes, the following graphs present base capital expenditure
and project staged completion to 30 April 2026, as most recently reported to the Capital Works
Executive Committee. These graphs are intended to visually support and complement the
information outlined in this report and reflect the same trends disclosed in Attachment 5.




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

Cash Management and Investment Performance

Total cash on hand at the end of May 2026 was $142.5m, with $7.0m of this balance held in trust.

Of the total cash balance at 30 June 2025 of $109.1m, $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. The mix of Council's external and
internal restricted cash will be reviewed during the compilation of Council's 2025/26 Financial

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ORDINARY MEETING                                                                    18 JUNE 2026


Statements and 2026/27 Budget.

A summary of Council's investments at 31 May 2026 is outlined in the following table.




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




The total movement in Council's cash holding during the 2025/26 financial year is shown in the
following graph.

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ORDINARY MEETING                                                                     18 JUNE 2026




As noted in the above graph and trend line, since July 2025, Council's total cash holdings have been
trending upwards and since 31 May 2025 have increased by $24.5m or 20.8%. The above monthly
results now indicate that Council's cash balance will be higher than its Revised Budget for the
2025/26 financial year as adopted by Council on 19 February 2026.

There are a number of factors contributing to this outcome including:
•   recognition of a higher than anticipated cash balance at 30 June 2025, due to the finalisation of
    Council's 2024/25 financial statements $17.4m
•   finalisation of the current recovery program which will improve Council's forecast cash position
    at 30 June 2026 by $15.0m
•   reprofiling and timing issues associated with Council's 2025/26 capital works program. The
    budget assumes and in turn funds 100% completion of the capital works program
•   higher than anticipated interest revenue due to higher than anticipated cash holdings which is
    estimated to achieve additional revenues in the order of $3.0m
•   higher than anticipated interest on Council's investment in Unitywater $0.8m.

The above result reflects, in part, prudent and conservative financial management practices that
have supported Council’s ongoing financial sustainability. Concurrently, a program of continuous
process improvement is being progressed to further strengthen the maturity, accuracy and reliability
of financial forecasting across the budget preparation and management framework.

Excluding interest on overdue rates and utility charges, at 31 May 2026, Council had received $7.7m
($2.4m from Associate - Unitywater) in interest from its investments.


Rates and Utility Charges
Rate Arrears

As outlined in the following table, at 31 May 2026 Council's outstanding rates and utility charges
totalled $8.5m or 7.2% of Council's rates and utility charges base, with the decrease in outstanding
rates and charges from April 2026 ($9.2m or 7.8%).

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ORDINARY MEETING                                                                     18 JUNE 2026


 Category                                   Totals

 Total rate arrears                       $8,515,961

 2025/26 Rates Revenue*                 $118,000,000

 Rates arrears %                            7.2%

 Rates arrears % (prior month)              7.8%

 Movement in arrears                      $731,537


To the end of May 2026, Council had recognised $925k in interest payments on overdue rates and
utility charges.

Rate arrears balances follow a predictable six-monthly cycle, increasing after the July and January
levy periods, and decreasing in the months that follow.

Measures of Financial Sustainability

As previously reported to Council, reporting of financial sustainability ratio performance will now
occur in September, December, March and June of each financial year.


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
Financial Performance Report April 2026 to the 21 May 2026 Ordinary Meeting.




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 31 May 2026 against its
Revised Budget for the 2025-26 financial year as adopted by Council on 19 February 2026.

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ORDINARY MEETING                                                                          18 JUNE 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.

At 31 May 2026, noting the financial impacts of the reclassification of Work In Progress (WIP)
projects and reprofiling / amendments to the timing of the delivery of the capital works program, there
are no other identified financial risks that will negatively impact Council's forecasted financial position
at 30 June 2026.


Human Rights
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 or community consultation was undertaken in the development of this report.

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ORDINARY MEETING                                                                           18 JUNE 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   X   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