REDLAND City Council has ended the 2025-26 financial year in a stronger-than-expected financial position, finishing $7.53 million ahead of its revised budget despite recording a provisional operating deficit and delivering significantly less capital works than planned.
An interim financial report to be presented to Wednesday’s council meeting shows the operating deficit for the year to June 30 was $1.28 million, compared with the budgeted deficit of $8.81 million.
The figures remain subject to year-end accounting adjustments and external audit before final results are released in October.
The improved result was driven by stronger-than-expected revenue from water consumption, investment earnings, grants and insurance recoveries, together with lower spending on employee costs and materials and services due to project timing, contractor availability, expenditure deferrals and ongoing cost containment measures.
However, the report also reveals council spent $91.27 million on capital works during the year – $35.35 million below its revised budget of $126.62 million.
Officers attributed the shortfall largely to delays in major projects and higher-than-anticipated wet weather throughout the financial year.
Among the largest projects underway were the Kinross Road sewerage trunk, Judy Holt Park expansion, Weinam Creek development, fleet replacement and recreational boating facilities at southern Redland Bay.
Despite the delays, officers said council remained focused on delivering its capital works program and was actively monitoring project milestones.
Council’s cash position also exceeded expectations, with cash and cash equivalents sitting at $271.89 million at June 30, compared with a budget forecast of $184.42 million.
The higher balance was attributed mainly to the timing of cash flows, including delayed capital expenditure and stronger receipts from grants, contributions and customer revenue.
The report found council achieved or exceeded most of its key financial sustainability measures, including operating cash, liquidity, debt and asset consumption ratios.
However, the Asset Sustainability Ratio remained below target because spending on infrastructure renewals did not keep pace with depreciation of existing assets.
The interim report will be presented to councillors for noting at the July 15 general meeting.
Final audited financial statements are expected to be considered in October.
