Redland City Council has delivered a $3.54 million operating surplus for the first half of the 2025-26 financial year, coming in $2.86 million better than budget, despite unplanned spending on maintenance and “critical tree management” work following ex-TC Alfred.
The result is detailed in Council’s December 2025 Monthly Financial Report, which will go before councillors at the general meeting on January 21, 2026 for noting.
The report shows Council’s total recurrent revenue for the year to date was $212.24 million, about $2.82 million above budget, driven by stronger-than-expected income from ferry permits, planning and plumbing applications, and work performed on private properties.
However, the financial update also points to cost pressures, with materials and services running $2.93 million above budget year to date.
Officers attribute this to a mix of higher operating costs and unbudgeted expenditure tied to maintenance and tree management activities in the wake of the former tropical cyclone.
Lower water use across the city also influenced the year-to-date picture, with the report stating reduced consumption flowed through to lower levies and utility charges revenue, but also lower bulk water expenses than budgeted.
One of the largest “favourable” movements was a $2.98 million underspend in depreciation, which the report says is expected to be a temporary timing difference.
Capital program behind schedule
Council’s capital works program is also tracking behind budget. At the end of December, the report shows capital works expenditure was $39.47 million, about $1.28 million below budget year to date.
Despite the lag, officers say Council continues to prioritise delivery and monitor project milestones.
Notable projects listed in the report include:
- Kinross Road sewerage trunk works (including a new pump station and trunk sewer main)
- Judy Holt Park recreational area expansion
- Fleet replacement
- RPAC forecourt redevelopment at Redlands Performing Arts Centre
- Ongoing works at the Weinam Creek Priority Development Area
Cash, debt and investments
The report records cash and cash equivalents of $225.26 million as at December 31, alongside a $50 million short-term investment held with Commonwealth Bank.
Council’s total investment balance at the end of December was reported as $275.26 million, with funds held predominantly in at-call facilities with Queensland Treasury Corporation and the term deposit.
Total borrowings at month’s end were $83.88 million, with the report noting the debt balance rose in June 2025 following new borrowings of $27.92 million under Council’s capital works plan, before reducing after the annual debt service payment in July.
Renewal spending remains a concern
While Council reported it had achieved or exceeded most key financial sustainability ratios monitored monthly, the asset sustainability ratio remains below target.
The report states Council spent $17.82 million on infrastructure renewals year to date, compared with $42.05 million in depreciation on infrastructure assets.
Officers note the ratio can fluctuate during the year depending on the timing of capital works, and that investment in non-renewal projects can increase the asset base and depreciation expense, pushing the ratio down.
What councillors will decide
The officer recommendation is that councillors note the financial position, results and ratio outcomes for December 2025.
Councillors also have the option to request additional information.
The report is presented under section 204(2) of the Local Government Regulation 2012, which requires the CEO to bring a financial report to Council each month.
