MORE than $53 million in previously approved Redlands projects will be carried into the current financial year under a proposed budget revision to go before councillors this week.
The 2026-27 Carryover Budget Review identifies $53.2m in capital projects that were under way at June 30 but were not scheduled to be completed before the end of the 2025-26 financial year.
Most of the projects are expected to be completed by October and are supported by existing contracts or work orders, according to the report.
Council officers have recommended adoption of the revised budget at Tuesday’s general meeting, saying the city’s $138.2m capital budget for 2026-27 is sufficient to fund the carryover works while allowing the new year’s program to continue.
The review does not seek approval for a new suite of projects. Instead, it shifts funding already allocated to works continuing across financial years, allowing projects already started to be completed.
“The primary focus of this carryover budget review is capital projects previously approved by Council that span the 2025-2026 and 2026-2027 financial years,” the report states.
Council’s Portfolio Management Office and Financial Services Group worked with business units to identify projects requiring funding to be carried forward.
The budget review also incorporates new grant income received since council adopted its 2026-27 budget on June 30, as well as minor adjustments to reserves.
Capital grants, subsidies and contributions are forecast to rise by $29.95m, from $44.89m in the original budget to $74.84m.
Operating grants and contributions would increase by $766,000, lifting total operating revenue from $468.15m to $468.92m.
The changes also include an additional $652,000 in operating expenses — made up of $290,000 in employee benefits and $362,000 in materials and services.
Despite those expenses, council’s forecast operating surplus would improve from $446,000 to $561,000.
Its forecast overall net result would rise from $62.08m to $92.15m, largely reflecting the extra grant funding included in the budget review.
The report says council officers will continue to closely analyse both the original 2026-27 capital program and the carryover works, with future budget reviews available if project timing or costs require further changes.
It also acknowledges ongoing pressure from global events on material prices and the availability of trades and suppliers.
Council says it is responding through more strategic procurement and multi-year project planning.
Several financial sustainability measures are projected to improve under the revised budget.
Unrestricted cash expense cover — a measure of how long council could continue to meet expenses from available cash — is forecast to increase from 4.49 months to 5.29 months.
The asset sustainability ratio, which indicates the extent to which ageing infrastructure is being renewed, is expected to rise from 81.8 per cent to 101.24 per cent because of a higher proportion of renewal projects.
The asset consumption ratio, however, is projected to fall from 74.43 per cent to 58.46 per cent, slightly below council’s five-year average target range.
Council’s net financial liabilities ratio is expected to improve from minus 19 per cent to minus 27.88 per cent, while its leverage ratio would rise slightly from 0.90 times to 0.93 times.
The figures are based on unaudited opening balances from 2025-26 and may change after council’s financial statements are finalised and audited.
