Acting Mayor Julie Talty has defended Redland City Council’s cash position, saying a widely discussed figure represents a snapshot in time rather than spare money available to reduce rates.
Cr Talty said Council’s cash balance had been misinterpreted in social media commentary as a surplus that could be spent freely or used to supplement ratepayer bills.
“The figure being quoted represents a point-in-time cash balance, and it should not be interpreted as a surplus amount of cash available for spending,” she said.
“Council’s cash flows operate on different cycles, with rates, utilities and charges paid quarterly, and much of that revenue received early in the quarter.
“Employees, suppliers and contractors are paid weekly and fortnightly throughout the year.”
Cr Talty said this meant Council’s cash balance naturally rose and fell across the financial year and could appear high at certain times.
However, she said much of the money was already committed to projects, contracts and future bills.
“It is basically sitting there waiting to pay a bill,” she said.
“It is not spare cash which can be used to supplement rates.”
Cr Talty said cash balances were used to fund major infrastructure projects, capital works programs and projects carried forward between financial years.
She said about $142 million was held in constrained reserves, meaning it could only be used for the specific purposes for which it had been allocated.
Council also maintained reserves to meet legislative financial sustainability requirements and ensure it could continue paying obligations and delivering services if normal operations were disrupted.
Cr Talty said about $50 million had been strategically invested in long-term deposits, generating interest income to help offset operational costs and reduce pressure on rates.
