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FINANCIAL PERFORMANCE REPORT – AUGUST 2025

Strategic Finance Advisor, David Lewis · Financial Services | Corporate Services Department

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 August 2025 against its Revised Budget for the 2025-26 financial year as adopted by Council on 21 August 2025. Council's overall financial performance to 31 August 2025 was a net surplus of $38.5m which is tracking above the projected net surplus of $35.6m with Council's operating result at 31 August being a surplus of $34.8m which compares favourably with Council's projected operating surplus of $33.8m.

Recommendation

That Council note the report by the Acting Financial Services Manager to the General Committee Meeting dated 15 September 2025 on Council's financial performance for the period ending 31 August 2025.

Report

YTD Financial Performance Summary

Budget

Actual

Variance

Status

August 2025

$m $m

$m

% Operating Revenue 60,501 61,187 686 1.13%

On Track Operating Expenditure 26,742 26,353 389 1.46%

On Track

Operating Position

,760

,833

,075

% Capital Revenue 1,847 3,651 1,804 97.70%

On Track Capital Expenditure 5,505 4,849 (656) -11.92%

Watch Detailed statements on Council's financial performance to 31 August 2025 are outlined in the following attachments to this report: Attachment 1 - Statement of Income and Expenditure Attachment 2 - Statement of Financial Position Attachment 3 - Financial Performance Analysis Attachment 4 - Capital Financial Performance. The $34.8m full year operating surplus comprises a $34.4m general operating surplus from activities that are funded through Council’s general rate, regulatory fees and sales of goods and services as well an additional $0.4m from waste operations as noted in the following table. Waste Operations Holiday Parks Budget Actual Variance Budget Actual Variance

YTD

YTD

YTD

YTD

YTD

YTD

$m $m $m $m $m $m Revenue 10.6 10.8 0.2 0.7 0.8 0.1 Expenditure 4.1 3.9 0.2 0.6 0.7 (0.1) Net Operating Position 6.5 6.9 0.4 0.1 0.1 0.0 Council has elected to apply National Competition Policy (NCP) reforms to its Waste Management and Holiday Parks activities which provides greater transparency and assists in removing anti-competitive conduct while ensuring the best allocation of Council's limited resources. A summary of the YTD operational performance of these business activities is outlined in the above table.

Operating Revenue Council has received 40.1% or $61.2m of its operating revenue budget of $152.4m with detailed commentary on major variances outlined in the following table.

Variance

Category

$'000 Commentary Higher than anticipated waste charges of $106k Rates, levies and charges and lower than anticipated discounts and rebates 145 of $83k partially offset by lower than anticipated general rates $37k. Mainly due to lower than anticipated Fees and charges Miscellaneous Fees associated with Material (147) Change of Use Fees $48k, Application Fees $39k and Infringement Fees $26k. Higher than anticipated interest revenue from Interest received investments with the Queensland Treasury 284 Corporation due to higher than anticipated cash holdings. Mainly due to higher than anticipated holiday Sale of Goods and major park revenue of $61k, Sale of Recyclables $32k 120 services and Venue Hire fees of $17k. Nil Sale of contract and recoverable - works Nil Rental & lease 25 income Nil Other income 31 Grants, subsidies, Mainly due to a grant funding of $88k associated contributions and with Resilient Rivers $88k, Lets get Sorted 228 donations

  1. $67k, Illegal Dumping (Waste) $21k and CoMSEQ Food Organics $34k. Unitywater - Nil Distributions At 31 August 2025, Council's outstanding rates balance was 5.8% which is slightly above industry best practice. Planning is now underway to actively manage these arrears into the future.

Operating Expenditure Actual operating expenditure is currently 17.3% or $26.4m of the full year budget of $152.2m with detailed commentary on major variances outlined in the following table.

Variance

Category

$'000

Commentary

Employee Costs Employee costs are under budget by $282k, mainly due to lower than anticipated vacancies of $1.0m partially offset by lower -282 capitalisation rates of $337k and higher than anticipated other employee costs of $193k and overtime costs of $186k.

Materials and Services Details on major material and services variances are show in the -46 following table.

Finance Costs Lower than anticipated borrowings are being reflected in lower -51 interest charges from Queensland Treasury Corporation $39k and Bank and Merchant Fees $18k.

Depreciation 0 Nil

Other Expenses -9 Nil

Summary of Key Materials and Services Expenditure Variances

August 2025

Variance

YTD

($'000) Administration Supplies and Consumables 4 Advertising and Marketing (22) All Other Materials and Services (242) Audit Expenditure 0 Commission Paid 47 Communications and IT (115) Consultancy Services (62) Contract Services (67) Donations , Sponsorship and Prizes 276 Electricity 45 Entertainment and Hospitality Fleet Operating Costs Grants Paid to Community Organisations Insurance Legal Expenses (24) Materials - Road Construction & Maintenace Operating Leases and Rentals Software and Maintenance (36) Subscriptions and Registrations 44 Travel 10 Water and Sewerage Charges (14) (46)

Tourism and Economic Development Investment Summary Council resolved to report on a monthly basis, investment details for tourism and economic development. Expenditure at 31 August 2025 is outlined below. Expenditure YTD Budget YTD Actual Variance $’000 $’000 $’000 - Tourism Noosa Funding Agreement $1,225.0 $1,225.0 $2.1 Economic Development $317.2 $319.3 $2.1 Total $1,542.2 $1,544.3

Capital Revenue Year to date Capital revenue of $3.7m received comprises cash contributions from developers of $0.4m and capital grants of $3.2m, with that 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) remains unpredictable.

Capital Program At 31 August 2025, actual capital expenditure (excluding commitments) was $4.9m or 5.1% of Council $95.8m capital works program. Detailed discussion of the progress of the capital works program is provided through a separate quarterly report by the Infrastructure Team. In the next budget review, council officers will look to recast the 2025-26 capital works program to better reflect forecast actual and financial delivery at 30 June 2026.

Cash Management and Investment Performance Total cash on hand at the end of August was $137.3 million. Included in this balance are funds held in trust and for restricted purposes (e.g. unexpended levy and grant funds), prepaid grants including the financial assistance grant, QRA disaster funding and other capital works grants, prepayment of Waste Levy subsidy and unspent monies committed for funding capital projects which are underway and will continue during the financial year. At 31 August, $6.7m was held in Council's trust accounts. A comparison of cash holdings between the 2025 and 2026 Financial years is shown in the following table. The following pie charts present the mix of cash held at 31 August 2025. Council's investments continue to be made in accordance with its Investment Policy adopted on 30 June 2025. Funds continue to be redirected to Queensland Treasury Corporation (QTC) due to the relatively higher interest rates being offered by this institution. Under Council's Investment Policy, there is no upper limit on the dollar or percentage value that can be invested with QTC. Council received $0.9m in interest from its investments to 31 August 2025.

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 the legislated local government sustainability ratios are designed for annual reporting. There are no significant emerging risks regarding performance at this stage; however, delays in the delivery of the capital program may impact Council’s asset sustainability and renewal targets.

Ratio

Budget Review 1

-Aug-25

Actual

Target 0.2% 56.9% Operating Surplus Ratio (%) Greater than 0% Total Cash expense Cover Ratio Greater than 3 8.7 74.6 (months) months 245.9% 55.00% Asset Sustainability Ratio (%) Greater than 80% 0.3% Not calculated as new Net Liabilities Ratio (%) Less than 60% loans have yet to be drawn down. Against the ratios adopted in Budget Review 1: • the higher operating surplus ratio reflects the recognition of revenue associated with the first rates strike • the total cash expense cover ratio reflects the collection of the first rates strike, lower than anticipated completion rate for the 2024-25 capital works program and delivery scheduling of the 2025-26 capital program • the asset sustainability ratio reflects works being completed in 2025-26 which to a large extent are carryover works from the 2024-25 financial year.

Report details

Index: ECM/ Subject/22.09 – Monthly Financial Performance Report