Redland City Council has recorded a $35.9 million operating surplus for the first two months of the financial year — $1.5m better than budget — as quarterly rates payments lifted cash and investments to $350.5m.
The August monthly financial report, to be considered at Wednesday’s council meeting, says Council is broadly tracking in line with its 2026–27 budget despite some early timing differences in income and expenditure.
Cash and investments rose from $308.19m in July to $350.49m at August 31, following the August 14 due date for first-quarter rates notices.
Council’s rates revenue was $373,000 ahead of budget for the year to date, while fees were $403,000 ahead and interest income was $436,000 above budget.
However, recurring revenue overall was $225,000 below budget, largely because levies and utility charges were $1.77m under forecast.
The biggest factor was water consumption charges, which were $1.18m below budget, with water access charges also $225,000 below forecast and wastewater charges $299,000 under budget.
That was partly offset by stronger income from planning and plumbing applications, as well as investment earnings.
Operating expenditure was $1.75m below budget, led by employee costs being $1.14m under forecast and materials and services expenditure $642,000 lower than planned.
The report attributes this to temporary recruitment timing differences, the timing of planned spending and efforts to find efficiencies.
Council spent $10.45m on capital works during July and August, slightly ahead of its $10.09m year-to-date budget.
Works included $2.19m on major road renewal projects, $1.17m for the expansion of Judy Holt Park, $1.05m for the Kinross Rd sewerage trunk project and $1.03m for a new sewerage pump station at Lorikeet Dr and trunk sewer main to the Cleveland wastewater treatment plant.
Almost $1m was also spent on server replacement works, while $596,000 went towards car park, drainage and lighting improvements at Mooroondu Rd, Thorneside.
Capital grant revenue was $3.41m below budget at $2.74m, but the report says recognition depends on the timing of work delivered under tied grants and the completion of developer-contributed assets.
Council met or exceeded targets for its operating surplus, operating cash, unrestricted cash expense cover, leverage and net financial liabilities ratios.
Its unrestricted cash expense cover stood at 6.85 months, well above the two-month target, while its leverage ratio was 1.56 times — within Council’s target range of zero to four times.
The asset sustainability ratio, however, remained below target.
Council spent $4.3m renewing existing infrastructure assets compared with $13.4m in depreciation during the period.
The report says the measure should be assessed across several years, rather than a single month, because it can be lower when spending is directed towards new or upgraded facilities instead of replacement assets.
Council’s asset consumption ratio was 59.95 per cent, just below its 60 per cent target.
The figures remain provisional while opening balances are finalised and audited, with Queensland Audit Office certification expected in early October.
