Financial Performance Report June 2026

Thank you. And Through the Chair. The report as read. The June report presents council's interim full year financial position to the 30th of June 2026 against the revised budget for the 2025-26 financial year. There are no identified financial risks expected to negatively impact council's forecasted position as at 30 June. It is important to note that the results remain subject to year-end financial adjustments with council's final 2025-26 financial performance to be reported following completion of the annual financial statements and the independent audit process. The 30th of June, Council reported an unfavourable net result to budget of $10.9 million this comprises a favourable operating result of $4.6 million offset by an unfavourable variance of $15.5 million relating to capital funding. Despite this, and it's important to note that is the comparison to our underlying budget, Council when looking at its actual performance recorded a favourable actual net result of approximately $38 million when including capital revenue expenditure. I would like to attention draw to matters detailed in the report itself. Operating revenue was $158 million, representing 103% of the full year's budget. The favourable revenue position is primarily driven by than anticipated interest received and operating grant subsidies and contributions. Our operating expenditure was $153.6 million, representing 100.2% of the full year's budget of $153.3 million. The overall operating variance remains within a narrow range of budget, with expenditure movements broadly offsetting across categories. The 4.6 million favourable operating result comprises 2.4 million of operating surplus council's core operating activities, and 2.2 million operating surplus from council's business activities. Waste management reported a net operating position of 3.9 million surplus, compared to a budget of 2.5 million. With our holiday parks reporting an operating surplus of 922,000 768,000. The business activities results include competitive neutrality adjustments and are presented to support transparency under the national competition policy reporting framework. Variances in both operating revenue and expenditure are consistent with the trends and verbal updates that have been provided by me in previous meetings. Details on these variances to budget are provided in tables on page three of the report. It is important to note that many of council's major revenue and expenditure categories have remained close with budget estimates, with several reporting outcomes within 1% of the actual budget. While all revenue and expenditure categories are currently reported, this level of detail can sometimes make it more difficult to identify the matters that warrant closer attention or further inspection. As part of council's commitment to Council officers will review opportunities to simplify and enhance the financial reporting to put a greater focus on where material variances are, emerging risks and key areas that require management. This approach will also help ensure financial information is transparent and compliant while making it easier for the community to focus on the issues that have the greatest impact to our financial performance and service delivery. Capital revenue of approximately $33 million to the 30th of June 2026 was mainly comprised of $30.3 million of capital grants and subsidies and $2.6 million of contributions. Developers. Capital grants and subsidies remain dependent on grant conditions and capital works delivery. Contributions continue to be inherently time to development. Both directly outside of council's own control. Capital expenditure was $40.8 million, representing 50.5% of council's $80.8 million revised capital works budget. Reprofiling of the $25.26 million budget occurred through standard budget processes, referred to as Budget Review 2. Any carry forward balances relating to the $25.26 capital works program will be identified and addressed through budget review 1, which is currently scheduled for August 2026. Identified and addressed through budget review 1, which is currently and works in progress adjustments reflect due diligence and periodic analysis to support the timely recognition and classification of reviewed capital assets. Total cash on hand as at 30 June 2026 was $139.7 million, with $7 million held in trust. Of the total cash balances, $30.7 million was externally restricted, with a further $25.3 internally restricted. As a result of council's final cash position, our approved borrowings of $3.1 million were not drawn down. Council's total cash holdings were $33.7 million, or 34% above the budgeted amount at 30 the stronger cash position reflects the net impact of capital delivery timing, brief program of capital works, our opening cash balance, and higher anticipated interest revenue. Council's investments continue to perform above agreed benchmarks, with our June 2026 result of our weighted average investment yield reported at 5.15% against a benchmark of 4.11. Greater is as at the 30th of June were totalled 8 million or 6.8% of council's rates in new Tilly charge base. Arrears decreased by 492,000 from May 2026. This movement is consistent with the month post levy pattern with balance and increase after the July and January rates levy periods. To the end of June, 2026, Council has recognised $1 million in interest payments on overdue rates and utility charges. As part of our quarterly rolling program, our measures of financial sustainability are included in the report. It is notable that all reportable ratios exceed the target thresholds and any changes in them are effectively driven by the updates I've provided verbally to you all today. Previous reports we have included a section of questions taken on notice for the General Committee. From the main ordinary committee meeting the questions taken on notice have either been brought back to Councillors or will be brought back as part of separate workshops. In closing the June remains an interim financial position and is subject to end of year financial and accounting adjustments. These matters will be captured to the preparation of council's financial statements and external audit processes with final audited financial statements and year-end performance to be presented to Council in November 2026. Thank you and happy to take questions.