Financial Performance Report July 2026

Brian Stockwell233:59

Date now and I noticed Council tinsel you had your hand up as well that was the close of the debate so we can so the only thing we can do now. Is vote on it so those in support Councillor of the motion Phillips. Online is there any support of the motion? No. Okay and those opposed to the motion would be loopie, Councillor Finzel. Councillor Wilkie, your position? Opposed. We can Councillor Wegener and Councillor Stockwell. The motion is lost. Okay we now move to section item 13 of the agenda which are the ordering meeting reports. We can invite the financial services manager Zach Morton as well as Director Gatt to discuss the Financial Performance Report for July 2026.

Good afternoon Councillors apologies for my voice and if I cough I'm just a bit husky just getting my coughing when we get into it. So thank you and through Chair I'll take the report as read. The July report presents Council's financial performance to the 31st of June 2026 against Council's original budget for the corresponding year. As this report represents our represents only one of the first month of the financial year, cautions should be exercised in interpreting and variances and emerging trends. Many revenue and expenditure categories are influenced by time and profiling and carry forward from the previous financial year and a single month does not provide sufficient basis to identify meaningful trends. As at the 31st of July 2026 Council reported a favourable net variance to budget of 1.4 million. It's it is important to note that the July results remain preliminary as we complete the 25-26 financial statements and external audit process. A number of year-end accounting adjustments may be required which could result in some movements to the current reported position. The favourable position is primarily attributed to higher than anticipated rates and utility charges from revenue. Stronger investment earnings and lower than anticipated operating and capital expenditure. It is important to note that many of the variances reported at this stage reflect carry forward balances from the 25-26 program. Grant timing and expenditure profiling rather than underlying changes to Council's financial performance. The next item on today's agenda is budget review 1 which will provide greater detail on these movements. I would like to take the opportunity to draw attention to a number of the matters detailed in the report. As at the 31st of July 2026, Council had received 64.1 million or 39% of its operating revenue of 163 or 164 million. The favourable operating revenue variance of 0.9 million is mainly attributed to rates and charges and higher than anticipated investment earnings. Our operating expenditure for the same period was 11.4 million or 7% of Council's underlying budget. The favourable variance of approximately 0.6 million was mainly attributed to lower than anticipated employee benefits and lower than anticipated materials and services for the period. At this stage of the financial year expenditure variances are largely driven by timing and profiling factors. Further detailed commentary and analysis will be provided in subsequent for monthly finance reports. In regards to Council's business activities, the overall operating variance comprises of $1.1 million from Council's core operating activities and 0.3 from its business activities. Waste management continues to report favourably. Against its operating position, with holiday parks remaining the channelling consistent with the underlying budget. Council's capital, revenue and expenditure for the 31st of July 2026. Its capital revenue is $5.4 million, comprised primarily of capital grants, subsidies, together with development contributions, as consistent with previous comments made in monthly finance reports. Grants, receipts and development contributions remain dependent on external factors and project delivery timelines. Capital expenditure to the 31st of July 2026 was $1.8 million or 2.1% of Council's $84 works program. It is important to know that July is typically not representative of the annual capital program of delivery due to the commencement of procurement lead times, carry forward balances and mobilisation activities. Additional detail regarding the capital works for forward program, project profile and budget adjustments is included within the budget review one report following the monthly finance report. Council's total cash on hand is at the 31st of July was 153 million including 67 million held in trust. Six points 6.7 sorry, my correction, 6.7 million held in trust Councillors, investments continue to perform well against agreed benchmarks. On a 12-month basis total cash holdings have increased.4 million or 6.5% to this time last year. The stronger cash position will fix the combined impact of carry forward expenditure, timing of capital delivery and investment performance. Writer rate arrears as at the 31st of July totalled 7.7 million or 6% of Council's rate and utility charge base. This was a reduction of 354 million from June 2026 it is worth noting that the basis for the calculation of rate arrears changed and changes in July each year as the calculation is reset to use the adopted annual rates in the underlying budget just and I just think.