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11 Financial Performance Report - May 2025
GENERAL COMMITTEE MEETING 16 JUNE 2025
8.13 FINANCIAL PERFORMANCE REPORT – MAY 2025
Author Financial Services Manager, Pauline Coles
Financial Services | Corporate Services Department
Index ECM/ Subject / 22.09 – Monthly Financial Performance Report
Attachments 1. Attachment 1 Statement of Income and Expenditure - May 2025
2. Attachment 2 Statement of Financial Position - May 2025
3. Attachment 3 Statement of Cashflows - May 2025
4. Attachment 4 Key Materials & Services Expenditure - May 2025
EXECUTIVE SUMMARY
Year-to-date (YTD) performance against current budget as at 31 May 2025 is positive with
operating revenues outperforming forecast and operating expenditure slightly under forecast
YTD.
Capital revenues are above forecast with capital expenditure behind forecast due to delays and
rescheduled timing of project delivery.
YTD Financial Performance Summary
Budget Actual Variance Variance
Status
$m $m $m %
Operating Revenue $134.9 $137.1 $2.2 1.6% Above Budget
Operating Expense $123.7 $122.7 $1.0 0.8% On Track
Operating Position $11.2 $14.5 $3.3
Capital Revenue $47.8 $59.9 $12.1 25.3% On Track
Capital Expenditure* $118.7 $70.5 $48.1 40.6% Behind Budget
* Reflects constructed assets and intangibles only (excludes contributed assets).
The $3.3 million full year positive interim operating variance comprises $2.4 million general
operating surplus from activities that are funded through Council’s general rate, regulatory fees
and sales of goods and services; as well as an additional $0.6 million from commercial
operations with Waste operations contributing $0.5 million and a further $0.1 million from Holiday
Parks. A further $0.3 million is contributed from unspent levy and separate charge funds which
are constrained in reserve for future use where they are not fully utilised in a given year.
Budget Variance
Actual YTD
Item YTD YTD
$m
$m $m
General business operating position (unconstrained funds) $5.0 $7.4 $2.4
Commercial operations (constrained funds) * $4.8 $5.4 $0.6
Unspent levies (constrained funds) $1.3 $1.6 $0.3
Total Council Operating Position $11.2 $14.5 $3.3
* Includes Waste and Holiday Park operations as shown in the table below
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Page 2
GENERAL COMMITTEE MEETING 16 JUNE 2025
Council elects to apply National Competition Policy (NCP) reforms to its Waste Management and
Holiday Parks which provides greater transparency and assists with removing anti-competitive
conduct and ensures the best allocation of Councils limited resources. A summary of the YTD
operational performance of these business activities is outlined below.
Waste Operations Holiday Parks
Budget Actual Variance Budget Actual Variance
YTD YTD YTD YTD YTD YTD
$m $m $m $m $m $m
Revenue 25.0 25.1 0.2 3.9 4.3 0.4
Expenditure 20.8 20.5 0.4 3.2 3.5 -0.3
Net Operating Position 4.1 4.6 0.5 0.7 0.8 0.1
Financial statements including Statement of Income & Expenditure, Statement of Financial Position
(balance sheet), and Statement of Cash Flows are included as attachments for information for
Council.
Figure 1: Actual Performance Compared to Budget
Council’s performance against key measures of financial sustainability has been calculated as of
May 2025. These statutory indicators enable the reader to assess Council’s success in managing its
budget, cash and debt as well as undertaking sustainable asset management. The table below
contains a snapshot of a number of key measures, with full detail included in the report.
YTD Measures of Financial Sustainability
Current
Target Actual YTD Status
Budget
Operating Surplus Ratio 0-10% 0.1% 10.5% On Track
Net Financial Liabilities Ratio <60% -7.0% -37.7% On Track
Cash Cover Ratio 3 months 9.5 months 11.5 months On Track
Asset Sustainability Ratio > 90% 116.6% 70.2% Behind Budget
Page 3
GENERAL COMMITTEE MEETING 16 JUNE 2025
RECOMMENDATION
That Council note the report by the Financial Services Manager to the General Committee
Meeting dated 16 June 2025 outlining the May 2025 year to date financial performance against
budget, including changes to the financial performance report with the inclusion of key financial
sustainability indicators.
REPORT
Operating Revenue (YTD Benchmark 91.7%)
Council has received 97.1% ($137.1 million) of its operating revenue budget ($141.3 million).
Commentary on each revenue category is provided below.
Category Summary Comments
Rates and Levies $94.1 million (99.8%) • Waste utility charges $78.5k above YTD
of the annual budget of budget (100.1% or $17.1 million of $17.0
$94.3 million has been million annual budget earned)
earned • General rate (net of discounts) $232.0k below
YTD budget (99.6% or $70.9 million of $71.2
million annual budget earned)
Fees and Charges $9.1 million (82.5%) of • Waste $57.3k above YTD budget (174.2% or
the annual budget of $99.2k of $56.9k annual budget earned)
$10.9 million has been • Cemeteries $53.4k above YTD budget
earned (106.9% or $373.9k of $349.8k annual budget
earned)
• Development Assessment $696.4k below YTD
budget (73.7% or $2.6 million of $3.6 million
annual budget earned)
• Local Laws $231.6k below YTD budget (77.1%
or $1.7 million of $2.1 million annual budget
earned)
• Building & Plumbing Compliance $184.1k
below YTD budget (84.5% or $2.2 million of
$2.6 million annual budget earned)
Sale of Goods and $15.1 million (95.2%) • Holiday Park revenue $365.0k above YTD
Services of the annual budget of budget (98.5% or $4.2 million of $4.3 million
$15.9 million has been annual budget earned), however any revenue
earned upside will be generally offset by a
corresponding increase in associated
operating costs
• Sports facilities revenue $244.8k above YTD
budget (103.9% or $3.1 million of $2.9 million
annual budget earned)
• Arts & Culture facilities revenue $54.5k above
YTD budget (95.8% or $571.2k of $596.1k
annual budget earned)
• Waste revenue $138.1k below YTD budget
(89.9% or $6.9 million of $7.7million annual
budget earned)
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GENERAL COMMITTEE MEETING 16 JUNE 2025
Category Summary Comments
Interest Received $6.1 million (164.8%) • Interest revenues have continued to track
of the $3.7 million above budget with investment in higher
annual budget has yielding term deposits maximising the return
been earned on surplus cash holdings. Cash holdings
remain high due to the advanced payment of
grants & subsidies, restricted levy balances,
future provision balances and delays in the
delivery of the capital works program.
Other Revenue $3.1 million (96.2%) of • Plant recharge revenue is $116.4k above
the $3.2 million annual budget due to internal plant being utilised for
budget has been the delivery of disaster funded capital projects.
earned • Ferry Service revenue $257.3k below YTD
budget (69.5% or $757.9k of $1.1 million
annual budget earned)
• $74.9k partnership revenue for Cascading
Climate risk project
• $67.8k proceeds from Insurance claim for
damage to Council property
Operating Grants, $5.5 million (76.9%) of • Operating Grants and subsidies tracking
Subsidies the $7.1 million annual above budget expectations at this stage of the
budget has been year
received • $1.4 million of the FY 2025 financial assistance
grant allocation was received in July
2024. This is a change from the previous
approach of prepaying part or all of the grant
in the preceding year. This prepayment
approach had been consistent over the past 7
years.
• Council has received notification of the
approved FY 2024/25 financial assistance
grant allocation which is less than
budgeted. As such there is potential for this to
impact the FY 24/25 operating position if
payment of future years allocations are not
paid in the preceding year.
Unitywater On track • Unitywater distributions are fixed each year so
Distributions there is limited budget variance risk
Page 5
GENERAL COMMITTEE MEETING 16 JUNE 2025
Figure 2: Operating Revenue Position by Type (Excluding Rates)
Operating Expenditure (YTD Benchmark 91.7%)
Actual operating expenditure is currently 86.9% ($122.7 million) of the full year budget ($141.1
million). Detailed commentary for each expenditure category is provided below.
Category Summary Comments
Employee Costs $47.0 million (88.5%) of the • Expenditure for permanent staff salaries
annual budget of $53.1 and wages underspent ($2.8 million) due
million has been expended to position vacancies and the recoupment
of YTD vacancy dividend. This
underspend is offset by additional spend
on casual staff and external labour hire
($1.5 million).
• The renegotiation of the Council's certified
agreement is still ongoing; accordingly the
forecast salary increases commencing
March 2025 have not yet taken effect. This
is also contributing to the YTD underspend
in employee costs. Once the agreement is
finalised and backpay is approved, these
savings will be used to cover these costs.
• Training costs are at $402.0k YTD or
104.1% of the annual budget spent
($386.1k)
Materials and $53.3 million (84.9%) of the • Civil Operations $725.7k above YTD
Services $62.8 million annual budget budget (97.9% or $9.3 million of $9.5
has been expended. million annual budget spent)
• Holiday Parks $263.3k above YTD budget
(95.8% or $2.5 million of $2.6 million
annual budget spent) however this is offset
by additional revenue
• Streetlighting $185.3k above YTD budget
(105.9% or $1.2 million of $1.1 million
annual budget spent)
• Disaster Management $119.8k above YTD
budget (234.7% or $145.3k of $61.9k
annual budget spent) This includes costs
relating to local disaster coordination
centre established for Tropical Cyclone
Alfred.
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GENERAL COMMITTEE MEETING 16 JUNE 2025
Category Summary Comments
• ICT $98.9k above YTD budget (91.2% or
$4.8 million of $5.3 million annual budget
spent)
• Waste Management $292.4k below YTD
budget (86.9% or $12.9 million of $14.8
million annual budget spent)
• Properties $146.2k below budget (84.5%
or $2.4 million of $2.8 million annual
budget spent)
• Development Assessment $115.8k below
budget (86.7% or $1.1 million of a $1.3
million annual budget spent)
• Arts & Culture $113.1k below budget
(76.4% or $2.0 million of $2.6 million
annual budget spent)
• Sports & Active lifestyles $61.1k below
budget (85.7% or $1.4 million of a $1.7
million annual budget spent)
• Buildings and Facilities $60.3k below
budget (80.1% or $989.0k of a $1.2 million
annual budget spent)
Finance Costs Currently on track • Whilst existing loan borrowings are set
with fixed interest rates, any further RBA
rate rises will impact finance costs on new
loan borrowings. YTD underspend also
relates to the timing of drawdown of
forecast borrowings for FY 2025.
Depreciation Currently on track Nil
Other Expenses Currently on track Nil
Figure 3: Operating Expenditure Position by Type
Tourism and Economic Development Investment Summary
Council resolved to report on a monthly basis, investment details for tourism and economic
development. Tourism and economic development activity is funded through the general rates
revenue. Expenditure as of 31 May 2025 is outlined below:
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GENERAL COMMITTEE MEETING 16 JUNE 2025
Expenditure YTD Budget YTD Actual Variance
$’000 $’000 $’000
Tourism Noosa Funding Agreement $2,520.0 $2,520.0 -
Economic Development $1,032.5 $1,002.2 $30.3
Total $3,552.5 $3,522.2 $30.3
All instalments payable under the Tourism Noosa agreement for the 2024-25 financial year have
been made. In May 2025, Council resolved to extend the Tourism Noosa agreement for a further
12 month period.
• Employee Costs $34.0k below YTD budget (86.2% or $564.0k of $654.6k annual budget
spent)
• Materials & Services are in line with budget YTD (93.5% or $2.7m of $3.0m annual budget
spent)
Capital Revenue
Year to date Capital revenue of $59.9 million received comprises cash contributions from
developers ($1.3 million) and capital grants ($56.8 million). Note that the timing of capital grant
receipts are generally dependent on the timing of grant conditions and also capital delivery
performance, and that the timing of the receipt of developer contributions (both cash and
contributed) is unpredictable.
Grants and subsidies are higher than prior years due to the receipt of funding from the
Queensland Reconstruction Authority for reconstruction works relating to the Black Mountain
landslip and several other flood impacted sites, which are currently under construction.
Figure 6: Capital Revenue by Type
Page 8
GENERAL COMMITTEE MEETING 16 JUNE 2025 Capital Program Actual capital expenditure (excluding commitments and disaster projects) is $24.0 million (YTD budget $40.7 million). Expenditure on disaster projects (excluding commitments) is $46.5 million (YTD budget $78.0 million). Detailed discussion of progress in the delivery of the capital works program is provided through a separate quarterly report by the infrastructure team. Figure 7: Capital Program Delivery Performance Cash Management and Investment Performance Total cash on hand at the end of May was $111.6 million. Included in this balance are funds held in trust and for restricted purposes (e.g. unexpended levy and grant funds), prepaid grants including the financial assistance grant, QRA disaster funding and other capital works grants, prepayment of Waste Levy subsidy (3 years), and unspent monies committed for funding capital projects which are underway and will continue during the financial year. The following pie charts present the mix of cash held at May 2025 by agency (graph on the left) and by credit risk rating (graph on the right). All funds have been invested in accordance with the Investment Policy and in consideration of the principles of ethical investment, preservation of capital, return on investment and counterparty thresholds. Figure 8: Closing Cash Held by Agency and Credit Rating
Page 9
GENERAL COMMITTEE MEETING 16 JUNE 2025
The following chart monitors the 12 month trend on total cash and the agencies invested. To
maximise the return on in its cash holdings Council has invested $25.5 million in higher yielding term
deposits. These investments were made in line with Council’s Investment of Surplus Funds policy.
Figure 9: 12 Month Trend of Cash Invested by Agency
Measures of Financial Sustainability
The following table incorporates a set of financial sustainability indicators to further assist in
managing Council financial performance. There are no significant emerging risks regarding
performance identified at this stage, however the delay in the delivery of the capital program
may impact Council’s asset sustainability and renewal targets.
Category Comments
Operating Surplus Ratio • Intent: Identifies the extent
to which revenues cover
operational expenses, to
ensure community equity is
not degraded
• Target: Greater than 0%
• Result: 10.5%
• Comment: With the second
rates cycle occurring in
January, this ratio will slowly
decline as expenditure on
operations occurs through to
the end of the financial year
at 30 June 2025.
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GENERAL COMMITTEE MEETING 16 JUNE 2025
Category Comments
Cash Expense Cover • Intent: Indicates how long
council can continue paying
its day-to-day expenses
from cash at bank without
needing additional cash
flows
• Target: > 3 months
• Result: 11.5 months
• Comment: Council is
forecast to remain above
target for the financial year.
Business as usual
expenditure through to 30
June 2025 will continue to
diminish Council’s cash
holdings, albeit not below
the target range of 3 – 6
months.
Cash reserves also include
working capital requirements
and funding for capital
programs, unspent grant monies
paid in advance, Waste Levy
subsidy prepayments and QRA
advance payments for disaster
projects which are restricted for
specific purposes and inflate the
ratio.
Asset Sustainability Ratio • Intent: Measures the extent
to which assets are being
replaced as their condition
degrades to ensure service
potential is maintained
• Target: 80% of depreciation
budget spent on renewals
annually
• Result: 70.2% achieved,
however below forecast
result due to project delays
and scheduling.
• Comment: The ratio will
progressively increase each
month as expenditure on
renewals occurs as part of
the capital works program.
For transparency QRA
disaster projects have been
excluded from the ratio
calculations. Ongoing
delays in the delivery of the
capital works program may
impact the achievement of
Council’s asset sustainability
and renewal targets
Page 11
GENERAL COMMITTEE MEETING 16 JUNE 2025
Category Comments
Net Financial Liabilities Ratio • Intent: Outlines the level
that net Council debt can be
serviced by operating
revenues. A ratio below zero
implies that liabilities are
less than cash (and other
current assets) and there is
adequate borrowing
capacity available if needed.
• Target: less than 60%
• Result: (37.7%)
• Comment: Council has low
debt levels and strong cash
holdings. The advance
payment of rates, grants and
subsidies also inflates the
YTD actual outcome.
Investment Return • Intent: Ensure appropriate
return on investment yield
for cash at bank.
• Target: 0.25% above
current Bloomberg
commonwealth 10-year
bond rate yield (4.42%)
• Result: 4.57%
• Comment: Council has
invested surplus cash in
higher yielding term deposits
to maximise
returns. However with
recent interest rate cuts,
yields on surplus cash are
likely to fall. Council’s
investment returns remain
on target.
Rates in Arrears • Intent: Ensuring that the
amount of unpaid rates
remains sustainable and
does not negatively impact
cash flows
• Target: 5.0% industry
benchmark
• Result: 5.6%
• Comment: Rates arrears
continue to decline from the
high point in the cycle with
payments coming due in
February. Reminder notices
have been issued and
arrears will continue to
stabilise through to June as
they are collected, and
payment arrangements
implemented.
Page 12
GENERAL COMMITTEE MEETING 16 JUNE 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
As above
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.
Some examples of potential risks that may impact on Council’s operational performance, capital
program delivery, cashflow and cash reserves include:
• Substantial damage to or failure of Council infrastructure due to natural disaster or other
emergent issue that may require significant unplanned investment;
• An extended closure of Council facilities impacting operational revenues;
• A prolonged IT system failure affecting Council’s ability to deliver services or issue rates
notices;
• Economic conditions affecting ratepayers’ ability to pay rates;
• Market driven increases in construction and operational costs significantly above estimates;
• Labour and material shortages and delays.
• Fraud attempts may result in financial impacts to Council if funds cannot be recovered;
• Reliance on non-recurrent revenue streams (i.e. interest revenue on grants and short term
cash holdings) to fund business as usual operations may result in higher rate increases in
future years or service level cuts to fund potential shortfalls;
• Strategies, plans and projects deliverables that have not been accurately costed.
Page 13
GENERAL COMMITTEE MEETING 16 JUNE 2025
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
Nil
Internal Consultation
All areas of Council are consulted as part of the regular monitoring of budget performance.
Departments consulted:
Office of the CEO, Mayor & Community Services Corporate Services
Councillors
Mayor & Councillors X Director X Director
X Chief Executive Officer Community Development X 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
Strategic Land Use Planning 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