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FINANCIAL PERFORMANCE REPORT FEBRUARY 2026

Acting Financial Services Manager, Zach Morton-Adair · 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 28 February 2026 against its Revised Budget for the 2025-26 financial year as adopted by Council on 19 February 2026. At 28 February 2026, Council had a favourable Net Result variance to budget of $4.8m, with $2.9m of this variance attributable to Council's operating result and a further $1.9m derived from Council's capital funding sources. At 28 February 2026, noting the impacts of higher than anticipated operational 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. Further to this, following the adoption of Budget Review 2 for the 2025-26 financial year at Council's Ordinary Meeting on 19 February 2026, Council is now required to adopt an amended debt policy. The attached revised 2025-26 Debt Policy (Attachment 6) now reflects total borrowings of $3.1m in the 2025-26 financial year with borrowings in the outer years remaining unchanged. There are no additional changes to the policy other than reflecting the updated position of Budget Review 2.

Recommendation

That Council:

  1. Note the report by the Revenue Services Manager and Financial Services Manager (Acting) to the General Committee dated 16 March 2026 regarding Council's financial performance to 28 February 2026; and
  2. Adopt the revised 2025-26 Debt Policy (Attachment 6) which incorporates the revised borrowings adopted by Council at its Ordinary Meeting on 19 February 2026.

Report

Operating Revenue At 28 February 2026, Council has received 90.2% or $138.4m of its operating revenue budget of $153.4m with detailed commentary on major variances outlined in the following table.

Operating Expenditure At 28 February 2026, actual operating expenditure was 63.2% or $96.9m 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 28 February 2026 are detailed in the following table.

Tourism and Economic Development Investment Summary Council resolved to report on a monthly basis, investment details for tourism and economic development. Expenditure on Tourism and Economic Development activities to 28 February 2026 is outlined in the below table.

Capital Revenue Capital revenue of $19.5m received to 28 February 2026 comprises cash contributions from developers of $2.2m and capital grants and subsidies of $17.3m, 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) remains unpredictable. Major capital grants and subsidies received to 28 February 2026 by project are outlined in the following table.

Capital Expenditure At 28 February 2026, actual capital expenditure (excluding commitments) was $24.9m or 30.8% of Council's $80.8m revised capital works program. However, as shown in the following table, when this expenditure is adjusted to exclude $4.7m of other capital expenses associated with the write off of assets, loan redemption payments of $0.6m and contributed assets, actual capital expenditure was $19.6m or 25.1% 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. 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 February 2026 was $159.4m 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. A summary of Council's investments at 28 February 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 January 2026 outlined in the following table and graph. At 28 February 2026, Council had received $5.4m ($1.2m from Associate - Unitywater) in interest from its investments.

Rates and Utility Charges As outlined in the following table, at 28 February 2026, Council's outstanding rates and utility charges totalled $15.1m or 12.8% of Council's rates and utility charges base. The significant increase in outstanding rates and charges is due to the rates issuance in January 2026. 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.

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 negative 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 exceed target and the ratios adopted in Budget Review 2. Due to the significant fluctuations in these ratios on a monthly basis, it is now recommended that they be reported on a quarterly basis in September, December, March and June of each financial year.

Revised Debt Policy Following the adoption of Budget Review 2 for the 2025-26 financial year at Council's Ordinary Meeting on 19 February 2026, Council is now required to adopt an amended debt policy. The attached revised 2025-26 Debt Policy (Attachment 6) now reflects total borrowings of $3.1m in the 2025-26 financial year with borrowings in the outer years remaining unchanged. The 2025-26 borrowings of $3.1m is made up of $0.9m for the expansion of the Resource Recovery Area at the Noosaville/Eumundi Road Landfill and $2.1m for the Cooroy - Lake MacDonald Residential Subdivision.

Report details

Index: ECM/Subject/22.09 - Monthly Financial Performance Reporting