FINANCIAL PERFORMANCE REPORT MARCH 2026
Executive summary
To meet its monthly reporting obligations under section 204 of the Local Government Regulation 2012 (the Regulation), a monthly financial report is to be provided to Council for its information. This report complies with section 204 of the Regulation, providing Council with a report on its financial performance to 31 March 2026 against its Revised Budget for the 2025-26 financial year as adopted by Council on 19 February 2026. At 31 March 2026, Council had a favourable Net Result variance to budget of $9.8m, with $3.5m of this variance attributable to Council's operating result and a further $6.3m derived from Council's capital funding sources. At 31 March 2026, noting the impacts of higher than anticipated operating and capital revenue streams and the timing of the delivery of the capital works program, there are no identified financial risks that will impact Council's forecasted financial position at 30 June 2026.
Recommendation
That Council note the report by the Revenue Services Manager and Financial Services Manager
- to the Ordinary Meeting dated 16 April 2026 regarding Council's financial performance to 31 March 2026.
Report
Operating Revenue At 31 March 2026, Council had received $143.7m or 93.7% of its operating revenue budget of $153.4m with detailed commentary on major variances outlined in the following table.
Operating Expenditure At 31 March 2026, actual operating expenditure was $111.6m or 72.8% of the full year budget of $153.3m with detailed commentary on major variances outlined in the following table. Major materials and services variances by financial statement category (as reported in Council's audited financial statements) to 31 March 2026 are detailed in the following table.
Tourism and Economic Development Investment Council resolved to report on a monthly basis, investment details for tourism and economic development. Expenditure on Tourism and Economic Development activities to 31 March 2026 is outlined in the below table. Details on specific project expenditures with the Tourism and Economic Development cost centres are outlined in the following table.
Capital Revenue Capital revenue of $24.1m received to 31 March 2026 comprises cash contributions from developers of $2.2m and capital grants and subsidies of $21.8m, with the timing of capital grant receipts generally dependent on the timing of grant conditions and capital works delivery. The timing of the receipt of developer contributions (both cash and contributed assets) remains unpredictable. Major capital grants and subsidies received to 31 March 2026 by project are outlined in the following table.
Capital Expenditure At 31 March 2026, actual capital expenditure (excluding commitments) was $28.5m or 35.2% of Council's $80.8m revised capital works program. However, as shown in the following table, when this expenditure is adjusted to exclude $4.6m of other capital expenses associated with the write off of assets, loan redemption payments of $1.9m and contributed assets, actual capital expenditure was $21.9m or 28.1% of the revised capital budget as outlined in the following table. Of the total year to date capital expenditure, $2.3m relates to disaster recovery works. Other Capital Expenses of $4.6m disclosed in the attachments, represents the in-part value of capital projects that have now been written off through the project now underway to review Council's WIP balance. For comparative purposes, the following graphs shows base capital expenditure and project staged completion to the 28 February 2026 as recently reported to the Capital Works Executive Committee. The trends in this graph are replicated in Attachment 5 to this report. Detailed discussion of the progress of the capital works program is provided through a separate quarterly report by the Infrastructure Team.
Cash Management and Investment Performance Total cash on hand at the end of March 2026 was $159.2m with $6.7m of this balance held in trust. Of the total cash balance at 30 June 2025 of $125.4m, $30.7m was externally restricted for items such as unexpended levy funds with a further $25.3m internally restricted for items such as disaster management, waste management and future asset replacement. The mix of Council's external and internal restricted cash will be review during the compilation of Council's 2026 Financial Statements. A summary of Council's investments at 31 March 2026 is outlined in the following table. Council's investments continue to perform well against agreed benchmarks with a summary of Council investment performance to the end of March 2026 outlined in the following table (rolling 6 monthly performance) and graph. During March 2026, Council's total cash holdings decreased by $0.2m. At 31 March 2026, Council had received $6.7m ($1.8m from Associate - Unitywater) in interest from its investments.
Rates and Utility Charges As outlined in the following table, at 31 March 2026 Council's outstanding rates and utility charges totalled $11.5m or 9.7% of Council's rates and utility charges base. The decrease in outstanding rates and charges from February 2026 ($15.1m or 12.8%) is primarily due to payments received from the January 2026 issuance.
Rate Arrears Key Metrics - Total arrears Category Totals Total rate arrears $11,452,029 2025/26 Rates Revenue* $118,000,000 Rates arrears % 9.7% Rates arrears % (prior month) 12.8% Movement in arrears $3,631,442
- Estimated 2025/26 revenue is based on July 2025 levy revenue multiplied by two, rounded to the nearest million dollars. Breakdown of arrears balances Category Totals Total rate arrears $11,452,029 Arrears above Policy thresholds (refer below) $10,820,128 Arrears below thresholds $631,901 On 30 June 2025, Council adopted the Rates and Charges Debt Management and Recovery Policy. Council officer now plans to initiate the policy's formal escalation process. Classification Threshold $1,000 Residential $1,500 Non-Strata Residential $1,000 Non-Residential $300,000 Shopping Centres $50,000 Other $30,000 Retirement Villages It should also be noted that rate arrears balances exhibit a consistent semi-annual pattern, rising after levy periods in July and January and subsequently declining in the months that follow each levy issuance. Analysis by category - as at 1 April 2026 To prevent identification of individual properties rating categories have been grouped as follows: • Residential: Residential, Non-Strata Residential • Non-residential: Non-residential, Shopping Centres, Other, Retirement Villages • No General Rate Category: Refers to properties that have outstanding rates and charges but do not have a general rate category.
Measures of Financial Sustainability While the following table incorporates a revised set of financial sustainability indicators to further assist in managing Council financial performance, it should be noted that many of the legislated local government sustainability ratios are designed for annual reporting. The low leverage ratio reflects Council's increasing cash and cash equivalents balances following the January 2026 rates issuance. There are no significant emerging risks regarding financial performance at this stage; however, reprofiling and/or amendment of planned delivery timeframes of the capital program, and the reclassification of WIP projects will impact Council’s operating surplus, operating cash, total cash expense cover and asset sustainability ratios. With the exception of the Asset Sustainability Ratio which is under the target value due to the current makeup of the capital works delivery program, all other ratios are within or exceed target and the ratios adopted in Budget Review 2. As indicated in the February 2026 Financial Performance Report, reporting of financial sustainability ratio performance will now occur in September, December, March and June of each financial year.
Report details
Index: ECM/Subject/22.09 Monthly Financial Performance Reporting