FINANCIAL PERFORMANCE REPORT - NOVEMBER 2025 · Report

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GENERAL COMMITTEE MEETING                                                       15 DECEMBER 2025


Council's overall financial performance to 30 November 2025 is summarised in the following table.




Detailed statements on Council's financial performance to 30 November 2025 are outlined in the
following attachments to this report:
Attachment 1 - Statement of Income and Expenditure 30 November 2025
Attachment 2 - Statement of Financial Position 30 November 2025
Attachment 3 - Statement of Changes in Equity 30 November 2025
Attachment 4 - Financial Analytics 30 November 2025
Attachment 5 - Capital Performance 30 November 2025.

The $11.0m full year operating surplus variance comprises a $10.5m general operating surplus from
activities that are funded through Council’s general rate, regulatory fees and sales of goods and
services as well as $0.7m 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 30 November 2025, Council has received 46.9% or $71.5m 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                                                     15 DECEMBER 2025




Operating Expenditure
At 30 November 2025, actual operating expenditure was 39.8% or $60.5m of the full year budget of
$152.1m 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 in December to determine if expenditure can be attributed to
capital works.

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GENERAL COMMITTEE MEETING                                                       15 DECEMBER 2025




Major materials and services variances by financial statement category (as reported in Council's
audited financial statements) to 30 November 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 30 November 2025
is outlined in the below table.




Capital Revenue
Capital revenue of $7.5m received to 30 November comprises cash contributions from developers
of $1.9m and capital grants and subsidies of $5.6m, 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.

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GENERAL COMMITTEE MEETING                                                       15 DECEMBER 2025



Major capital grants and subsidies received to 30 November 2025 by project are outlined in the
following table.




Capital Expenditure
At 30 November 2025, actual capital expenditure (excluding commitments) was $15.6m or 16.3% 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 $11.0m or 11.5% of the revised capital budget against a target of 41.7%.

Of the total year to date capital expenditure, $2.5m relates to carry-over projects from 2024-25 with
a further $1.1m relating to unbudgeted works mainly associated with the purchase of 516 Upper
Pinbarren Road, with this acquisition funded from Council's Environmental Levy.

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.

Excluding loan redemption payments, donated assets and other capital expenses, the following table
outlines the progress of the capital works program by portfolio at 30 November 2025.

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GENERAL COMMITTEE MEETING                                                        15 DECEMBER 2025



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 2024-25 financial year, Council incurred expenditure of $10.1m
against this line item with this item to be carefully considered in the development of the 2026-27
Budget.

Cash Management and Investment Performance
Total cash on hand at the end of November 2025 was $126.1m. Included in this balance are funds
held in trust of $6.7m with $119.4m being at call. Of the total cash balance at 30 June 2025, $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.

Details on these restricted funds will be presented to Council upon the finalisation of Council's 2024-
25 financial statements.

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) 80.3%
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 19.7% of its total cash holdings invested with other financial
institutions in compliance with Council's Investment Policy.

Council received $1.5m in interest from its investments to 30 November 2025 with a further $0.4m
recognised as interest on overdue rates and utility charges. A summary of Council investment
performance to the end of November 2025 is outlined in the following table.




As indicated above, at 30 November 2025 Council's total cash balance was $126.1m which is
$24.8m or 24.5% higher than at 30 November 2024 with this increasing cash balance mainly due to
recent ongoing delays to Council's capital works programs.

Outstanding Rates and Utility Charges
As outlined in the following table, at 30 November 2025, Council's outstanding rates and utility
charges totalled $7.7m or 6.5% of Council's rates and utility charges base.

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GENERAL COMMITTEE MEETING                                                       15 DECEMBER 2025



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.

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.

Against the ratios adopted in Budget Review 1:
• the high Operating Surplus and Operating Cash Ratios reflect the better than anticipated operating
result at 30 November 2025, with revenue streams higher than and expenditure streams lower than
anticipated
• the Operating Cash Ratio, Unrestricted Cash Expense Cover Ratio and Total Cash Expense Cover
Ratio reflect the higher than anticipated cash balance at 30 November 2025 due to a better-than-
expected operating result and lower than anticipated capital expenditure
• the Asset Sustainability Ratio reflects the makeup of year-to-date capital works expenditure which
continues.

As expected, Council's cash ratios have declined slightly in November with this trend to continue
until rates and utility charges are collected following the next rates strike.

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GENERAL COMMITTEE MEETING                                                        15 DECEMBER 2025




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, providing Council with a
report on its financial performance to 30 November 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 30 November 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
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.

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GENERAL COMMITTEE MEETING                                                            15 DECEMBER 2025



Consultation
External Consultation - Community & Stakeholder
No external community or stakeholder engagement was undertaken in the development of this
report.
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