REDLAND City Council has recorded a $32.43 million operating surplus for the financial year to date, according to the February 2026 Monthly Financial Report to be presented at next week’s council meeting.
The result is $10 million ahead of the revised budget forecast, but council officers say the favourable position is largely due to timing differences and is not expected to last.
The report notes council’s revised full-year forecast still predicts an operating deficit of $8.17 million once all revenue and expenditure are accounted for by the end of the financial year.
According to the executive summary, the stronger year-to-date result has been driven by higher than expected revenue and lower expenses compared with budget.
Increased income has mainly come from planning and plumbing application fees and work carried out on private properties, with officers noting development-related revenue can fluctuate month to month and may not represent a longer-term trend.
Licence fee income has also been higher than expected, though officers say this is likely due to the timing of invoice receipts rather than a sustained increase in revenue.
Council’s expenses have also come in below budget for the period.
Lower employee costs and reduced depreciation expenses have contributed to the favourable variance, although officers say the depreciation difference is likely temporary and linked to the timing of capital works being completed and recorded in council’s asset register.
These savings have been partly offset by higher materials and services costs, including unbudgeted maintenance and critical tree management work following ex-Tropical Cyclone Alfred.
The report states council officers remain focused on delivering the cost-efficiency savings built into the budget, which have not yet been fully realised.
Capital works spending is also $14.35 million behind budget, with several projects progressing slower than planned.
However, some of this has been offset by work continuing on projects carried over from the previous financial year.
Officers say they are continuing to monitor project milestones and prioritise delivery of infrastructure works.
Council’s cash balance stood at $279.56 million at February 28, significantly higher than the $223.01 million recorded in January and above budget forecasts.
The stronger cash position has largely been attributed to lower than planned payments for property, plant and equipment and higher than expected capital grants and contributions, although this has been partly offset by higher payments to suppliers.
Despite the positive financial position, council’s Asset Sustainability Ratio remains below target, with year-to-date asset renewal spending of $26.64 million compared with $55.26 million in depreciation on infrastructure assets.
The ratio measures how well council is maintaining and renewing ageing infrastructure such as roads, drainage and public facilities.
Other key financial sustainability indicators — including the operating surplus ratio, operating cash ratio, unrestricted cash expense cover ratio, leverage ratio and net financial liabilities ratio — are currently meeting or exceeding council targets.
The financial report is presented each month in accordance with the Local Government Regulation 2012, which requires councils to provide regular updates on their financial position.
Councillors will be asked to formally note the financial position, results and ratios for February 2026 when the report is considered at the March 18 general meeting.
