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09 Financial Performance Report - Mar 2025
GENERAL COMMITTEE MEETING 14 APRIL 2025
8.1 FINANCIAL PERFORMANCE REPORT – MAR 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 - Mar 2025
2. Attachment 2 Statement of Financial Position - Mar 2025
3. Attachment 3 Statement of Cashflows - Mar 2025
4. Attachment 4 Key Materials & Services Expenditure - Mar 2025
EXECUTIVE SUMMARY
Year-to-date (YTD) performance against current budget as at 31 March 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 $128.7 $130.9 $2.2 1.7% Above Budget
Operating Expense $102.3 $102.1 $0.2 0.2% On Track
Operating Position $26.4 $28.8 $2.4
Capital Revenue $40.9 $52.1 $11.2 27.3% On Track
Capital Expenditure* $110.5 $61.8 $48.6 44.0% Behind Budget
* Reflects constructed assets and intangibles only (excludes contributed assets).
The $2.4 million full year positive interim operating variance comprises $1.6 million general
operating surplus from activities that are funded through Council’s general rate, regulatory fees
and sales of goods and services; Waste operations contributed an additional $0.7 with a further
$0.2 million 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. Holiday Parks are $0.1 million below
forecast YTD due in part to the closure of the holiday parks, during Tropical Cyclone Alfred and
higher than anticipated waste and maintenance charges.
Budget Actual Variance
Item YTD YTD YTD
$m $m $m
General business operating position (unconstrained funds) $17.3 $18.9 $1.6
Commercial operations (constrained funds) * $7.1 $7.7 $0.6
Unspent levies (constrained funds) $2.0 $2.2 $0.2
Total Council Operating Position $26.4 $28.8 $2.4
* Includes Waste and Holiday Park operations as shown in the table below
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Page 2
GENERAL COMMITTEE MEETING 14 APRIL 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 are 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 23.7 24.2 0.5 3.3 3.4 0.1
Expenditure 17.2 17.0 0.2 2.7 2.9 (0.2)
Net Operating Position 6.5 7.2 0.7 0.6 0.5 (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 at
March 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% 22.0% On Track
Net Financial Liabilities Ratio <60% -7.0% 39.5% On Track
Cash Cover Ratio 3 months 9.5 months 12.7 months On Track
Asset Sustainability Ratio > 90% 116.6% 58.2% Behind Budget
Page 3
GENERAL COMMITTEE MEETING 14 APRIL 2025
RECOMMENDATION
That Council note the report by the Financial Services Manager to the General Committee
Meeting dated 14 April 2025 outlining the March 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 75.0%)
Council has received 92.6% ($130.9 million) of its operating revenue budget ($141.3 million).
Commentary on each revenue category is provided below.
Category Summary Comments
Rates and $94.1 million (99.8%) • Waste utility charges $83.1k above YTD budget
Levies of the annual budget of (100.1% or $17.1 million of $17.0 million annual
$94.3 million has been budget earned)
earned • General rate (net of discounts) $196.6k below
YTD budget (99.6% or $70.9 million of $71.2
million annual budget earned)
Fees and $7.9 million (72.8%) of • Waste $64.8k above budget (187.5% or $106.8k
Charges the annual budget of of $56.9k annual budget earned)
$10.9 million has been • Building & Plumbing Compliance $50.9k above
earned budget (74.9% or $1.9 million of $2.6 million
annual budget earned)
• Cemeteries $36.1k above budget (85.3% or
$298.4k of $349.8k annual budget earned)
• Noosa Seniors $31.9k above budget (83.7% or
$305.8k of $365.1k annual budget earned)
• Development Assessment $478.8k below
budget (66.0% or $2.3 million of $3.6 million
annual budget earned)
• Local Laws $72.4k below budget (71.0% or $1.5
million of $2.1 million annual budget earned)
Sale of Goods $12.6 million (78.9%) • Sports facility revenue $179.9k above budget
and Services of the annual budget of (85.9% or $2.5 million of $2.9 million annual
$15.9 million has been budget earned)
earned • Holiday Park revenue $44.8k above budget
(79.4% or $3.4 million of $4.3 million annual
budget earned). Any revenue upside will be
generally offset by a corresponding increase in
associated operating costs. Note: Holiday parks
were closed for several days during Tropical
Cyclone Alfred which has impacted revenue
during March 2025.
Interest $4.9 million (133.8%) • Interest revenues have continued to track above
Received of the $3.7 million budget with investment in higher yielding term
annual budget has deposits maximising the return on surplus cash
been earned holdings. Cash holdings remain high due to the
advanced payment of grants & subsidies,
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GENERAL COMMITTEE MEETING 14 APRIL 2025
Category Summary Comments
restricted levy balances, future provision
balances and delays in the delivery of the capital
works program.
Other Revenue $2.9 million (90.4%) of • Plant recharge revenue is $108.0k above budget
the $3.2 million due to internal plant being utilised for the delivery
annual budget has of disaster funded capital projects.
been earned • Recoupment of Utility charges on commercial
properties $22.6k above budget (143.9% or
$73.6k of $51.1k annual budget earned.
Operating $5.0 million (70.7%) of • Operating Grants and subsidies are in line with
Grants, the $7.1 million budget expectations at this stage of the year.
Subsidies annual budget has • $1.4 million of the FY 2025 financial assistance
been received 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
Figure 2: Operating Revenue Position by Type (Excluding Rates)
Operating Expenditure (YTD Benchmark 75.0%)
Actual operating expenditure is currently 72.3% ($102.1 million) of the full year budget ($141.1
million). Detailed commentary for each expenditure category is provided below.
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GENERAL COMMITTEE MEETING 14 APRIL 2025
Category Summary Comments
Employee Costs $38.9 million (73.3%) of the • Expenditure for permanent staff salaries
annual budget of $53.1 and wages underspent ($1.8 million) due to
million has been expended position vacancies and the recoupment of
YTD vacancy dividend. This underspend is
offset by additional spend on casual staff
and external labour hire ($1.3 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 ahead of forecast at this
point in the year (85.0% or $328.1k of
$291.3k annual budget spent)
Materials and $44.9 million (71.4%) of the • Civil Operations $855.9k above YTD budget
Services $62.8 million annual budget (83.6% or $7.9 million of $9.5 million annual
has been expended. budget spent)
• Holiday Parks $136.7k above YTD budget
(78.7% or $2.0 million of $2.6 million annual
budget spent) offset by additional revenue
• Streetlighting $135.9k above YTD budget
(84.8% or $951.2k of $1.1 million annual
budget spent)
• Disaster Management $103.1k above YTD
budget (206.6% or $127.9k of $61.9k
annual budget spent) This includes costs
relating to the local disaster coordination
centre established for Tropical Cyclone
Alfred.
• Fleet $65.0k above YTD budget (79.7% or
$1.3 million of $1.6 million annual budget
spent)
• Waste Management $125.7k below YTD
budget (71.7% or $10.6 million of $14.8
million annual budget spent)
• Transport & Traffic planning $93.9k below
YTD budget (58.1% or $203.3k of $349.6k
annual budget spent)
• Development Assessment $111.1k below
budget (74.9% or $983.9k of a $1.3 million
annual budget spent)
• Arts & Culture $107.3k below budget
(61.8% or $1.6 million of $2.6 million annual
budget spent)
• Sports & Active lifestyles $90.4k below
budget (67.7% or $1.1 million of a $1.6
million annual budget spent)
• Properties $83.4k below budget (69.9% or
$1.9 million of $2.8 million annual budget
spent)
• Buildings and Facilities $69.7k below
budget (64.5% or $796.6k of a $1.2 million
annual budget spent)
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GENERAL COMMITTEE MEETING 14 APRIL 2025
Category Summary Comments
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 at 31 March 2025 is outlined below:
Expenditure YTD Budget YTD Actual Variance
$’000 $’000 $’000
Tourism Noosa Funding Agreement $2,520.0 $2,520.0 -
Economic Development $825.4 $800.6 $24.8
Total $3,345.4 $3,320.6 $24.8
All instalments payable under the Tourism Noosa agreement for the 2024-25 financial year have
been made. The Tourism Noosa agreement is due for renewal in June 2025.
• Employee Costs are $27.4k below budget (70.6% or $462.4k of $654.6k annual budget
spent)
• Materials & Services are in line with budget at this stage of the year.
Legal Cost Summary
An update on legal costs and associated expenditure is provided on a quarterly basis.
Legal and associated costs are $90.5k over budget YTD (91.1% or $1.2 million of $1.3 million
annual budget spent). Legal and associated expenditure is dependent on the type and specialist
nature of appeals being undertaken and costs and timing may fluctuate as a result.
Page 7
GENERAL COMMITTEE MEETING 14 APRIL 2025 Year to date expenditure as at 31 March 2025 is outlined below: Figure 4: Legal Costs (including legal consultancy) over time Figure 5: Legal Cost by Department – 5 year trend
Page 8
GENERAL COMMITTEE MEETING 14 APRIL 2025 Consultancy Expenditure Summary An update on consultancy expenditure is provided on a quarterly basis. Consultancy costs are $330.1k over budget YTD (70.8% or $1.5 million of $2.1 million annual budget spent). Consultancy expenditure varies across Council and is generally of a specialist nature to supplement or complement existing resources or is required in order to undertake specific project works, as a result expenditure may fluctuate at different times. Figure 6: Consultancy Expenditure over time Figure 7: Consultancy Expenditure by Department – 5 year trend Note: the above amounts relate to operational projects only and do not reflect consultancy expenditure incurred in respect to capital projects. Capital Revenue Year to date Capital revenue of $52.1 million received comprises cash contributions from developers ($1.0m) and capital grants ($49.3 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.
Page 9
GENERAL COMMITTEE MEETING 14 APRIL 2025 Figure 8: Capital Revenue by Type Capital Program Actual capital expenditure (excluding commitments and disaster projects) is $20.0 million (YTD budget $33.7 million). Expenditure on disaster projects (excluding commitments) is $41.8 million (YTD budget $76.8 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 9: Capital Program Delivery Performance Cash Management and Investment Performance Total cash on hand at the end of March was $120.9 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.
Page 10
GENERAL COMMITTEE MEETING 14 APRIL 2025 The following pie charts present the mix of cash held at March 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 10: Closing Cash Held by Agency and Credit Rating 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 $30.5 million in higher yielding term deposits. These investments were made in line with Council’s Investment of Surplus Funds policy. Figure 11: 12 Month Trend of Cash Invested by Agency
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GENERAL COMMITTEE MEETING 14 APRIL 2025
Quarterly Supplementary Information - Cash Components
An update detailing the composition of Council’s cash reserves is provided quarterly. Council’s
cash balance comprises a number of components – restricted cash (reserves), committed cash,
financial sustainability requirements and unrestricted cash. These are outlined below.
Restricted Cash - In accordance with Council’s Management of Restricted Cash Policy, funds
are set aside and restricted for a specific purpose. This can be either to meet regulatory
requirements, allocate against specific future projects and activities, and to ensure sufficient
working capital to meet current and long term financial obligations.
Committed Cash - A portion of cash reserves are committed to undertake current year capital
works. At the start of the financial year, this commitment will be increased for any unfinished
capital works from previous year which are carried over as part of the budget review process to
ensure the projects can be completed.
Sustainability Requirement – Cash expense cover is a key statutory indicator to measure
liquidity, ensure going concern and is a key measure considered in Council achieving its current
credit rating (Sound with a Neutral Outlook) to ensure borrowing capacity. Cash expense cover
calculates how long Council can continue to pay its day-to-day expenses without needing to
seek borrowings or other external funding. A target minimum of three month’s cash cover is to
be held in any given financial year to minimise financial risk.
Unrestricted Cash – These are funds where there is no regulatory, policy or budgetary
commitment to retain funds for specific purposes. These funds can be separated into the
following:
• Working Capital – The cycle of revenue received twice yearly through rates that is held
in the bank and spent over the following six months on operations and capital.
• Long Term Surplus – Uncommitted cash set aside to fund the 10-year capital works
program.
Overall, Council’s $12.09 million total cash balance compromises:
• $46.4 million (38.4%) in restricted cash. This has increased due to the receipt of levy
funds from the second rates issue in January with funds to be utilised for levy programs
through to 30 June 2025. Grant funds have also increased but will be utilised as programs
are delivered.
• $15.3 million (12.7%) committed for the delivery of capital works projects.
• $29.0 million (24.0%) to meet sustainability requirements, equivalent to 3 months cash cover.
• $23.3 million (19.2%) in working capital to pay for operations through to the end of the
financial year.
• $6.9 million (5.7%) in unrestricted free cash, which is the cash available to fund emergent
or new capital works projects. There is no funding to replenish this unless Council
generates a surplus operating position.
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GENERAL COMMITTEE MEETING 14 APRIL 2025
Figure 12: Allocation of Cash Balances
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: 22.0%
• 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 14 APRIL 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: 12.7 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 balances are at the peak of the
cycle with the second rates issue
occurring in January 2025. 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: 58.2% achieved,
however below forecast result
due to project delays and
scheduling.
• Comment: The ratio will
progressively increases 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. Should capital
works continue to fall below
forecast for the remainder of the
year this may impact the
achievement of Council’s asset
sustainability and renewal
targets
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GENERAL COMMITTEE MEETING 14 APRIL 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: -39.5%
• 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 (4.46%)
• Result: 5.23%
• Comment: Council has
invested surplus cash in
higher yielding term deposits
to maximise
returns. Council’s investment
returns remain above target.
Rates in Arrears • Intent: Ensuring that the amount
of unpaid rates remains
sustainable and does not
negatively impact cash flows
• Target: 5% industry benchmark
• Result: 8.1%
• Comment: Rates arrears
continue to decline from the high
point in the cycle with payments
coming due in February. This
ratio will continue to decline from
the high point in the cycle as
payments are
received. Recovery action may
be considered where
appropriate.
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.
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GENERAL COMMITTEE MEETING 14 APRIL 2025
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.
• Strategies, plans and projects deliverables that have not been accurately costed
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 14 APRIL 2025
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