FINANCIAL PERFORMANCE REPORT AUGUST 2026 · Report

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ORDINARY MEETING                                                              17 SEPTEMBER 2026



REPORT
Council's financial performance to 31 August is summarised in the following table.




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

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

The $1.3 million full-year operating variance at 31 August 2026 comprises a $0.9 million operating
surplus from Council’s core operating activities and a $0.4 million operating surplus from Council’s
Business Activities, 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                                                               17 SEPTEMBER 2026



Operating Revenue
At 31 August 2026, Council had received $66.7 million or 40.6% of its operating revenue budget of
$164.2 million.

The favourable operating variance of $1.0 million is mainly attributable to:

• higher than anticipated general rates $169k and waste utility charges $100k and lower than
anticipated discounts $91k and pensioner remissions and rebates $71k
• higher than anticipated investment earnings (interest) arising from higher than budgeted average
cash holdings $582k.

Operating Expenditure
At 31 August 2026, actual operating expenditure was $27.1 million or 16.5% of the full year operating
expenditure budget of $164.2 million.

The favourable operating variance of $0.3 million is mainly attributable to:
•   lower than anticipated employee benefits $84k
•   lower than anticipated materials and services costs of $103k
•   lower than anticipated finance costs $148k.
Expenditure variances at this stage of the financial year are largely influenced by timing and
expenditure profiling factors. Further detailed analysis and commentary will be provided through
future monthly reports as expenditure patterns mature and longer-term trends can be assessed with
greater confidence.

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




Capital Revenue
Capital revenues of $6.2 million received to 31 August 2026 mainly comprise capital grants and
subsidies of $6.1 million and cash contributions from developers of $101k, with the timing of capital
grant and subsidy receipts generally dependent on grant conditions and the timing of capital works
delivery.

The timing of the receipt of developer contributions (both cash and contributed assets) remains
unpredictable.

A summary of major capital grants and subsidies received to 31 August 2026 by capital works is
outlined in the following table.

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ORDINARY MEETING                                                            17 SEPTEMBER 2026




Capital Expenditure
At 31 August 2026, actual capital expenditure (excluding contributed assets, loan redemption
payments and commitments) was $6.8 million or 6.8% of Council's $99.7 million capital works
program.

Details on specific project expenditure variances will be provided through future monthly reports as
budgets are adjusted to more accurately reflect anticipated project delivery timelines. This will
incorporate graphs presented to the Capital Works Executive Committee to visually support and
complement the information contained in this report.

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 August 2026 was $175.8 million, with $6.7 million of this balance
held in trust.

A summary of Council's investments at 31 August 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 August 2026 outlined in the following table (rolling 6
monthly performance) and graph (rolling 12 monthly performance).

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ORDINARY MEETING                                                                             17 SEPTEMBER 2026




On a rolling 12-month basis, Council's total cash holdings have increased by $34.1 million or 24.1%
since September 2025.

Rates and Utility Charges
Rate Arrears
Outstanding rates and utility charges for August 2026 reflects the issuance of the July 2026 rates
levy, which was due on 14 August 2026.

Consequently (as outlined in the following table), total rates and utility charges arrears increased
from $7.7 million (6.0% of rates levied) in July 2026 to $15.7 million (13.2% of rates levied) in August
2026.




* Estimated 2026/27 revenue is based on July 2026 levy revenue multiplied by two, rounded to the nearest million dollars.
In the 2025/26 financial year the gross rates revenue was $118,000,0000.

By comparison, the arrears balance at August 2025 represented 12.8% of rates levied.

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

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ORDINARY MEETING                                                                17 SEPTEMBER 2026



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.

Removal of Credit Card Surcharge Service Fee

Council's 2026/27 Fees and Charges Schedule currently include a 0.55% Credit Card Surcharge
Service Fee. From 1 October 2026, card surcharges will no longer be permitted in Australia.
Accordingly, it is proposed that the 0.55% Credit Card Surcharge Service Fee be removed from
Council's Fees and Charges Schedule effective 1 October 2026. This amendment will ensure
Council's Fees and Charges Schedule remains current and compliant with the applicable regulatory
requirements.

The proposed Fees and Charges amendment has no material impact on Council's operating position
or overall revenue base, as the credit card surcharge offsets merchant transaction costs incurred by
Council.


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.


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 August 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

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ORDINARY MEETING                                                                  17 SEPTEMBER 2026


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


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 community or stakeholder engagement was undertaken in the development of this
report.
Internal Consultation
     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