Liverpool City Council is on track to end the financial year bang on budget, delivering a healthy surplus and maintaining strong cash in the bank.
The Quarter Three Budget Review confirms Council's financial position remains sound, with a projected Net Cost of Services (NCOS) surplus of $781,000, closely aligned with the original budgeted surplus of $798,000.
Council's operating performance continues to strengthen, with a $2.6 million increase in operating revenue and a $800,000 reduction in expenditure, reflecting disciplined financial management and careful planning.
Liverpool Mayor Ned Mannoun said the figures reinforce that Liverpool City Council is a stable, well-run organisation.
"When a council finishes on budget, delivers a surplus and maintains strong reserves, it's a clear sign the organisation is functional," he said.
"This is the hallmark of a council that is focused, responsible and delivering real outcomes for its community."
Council is also continuing to invest in local infrastructure, with a $208.3 million capital works program and more than $100 million already delivered this financial year across roads, drainage, parks and community facilities.
By 30 June 2026, Council is projected to hold $433.7 million in cash and investments, while meeting all three key financial covenants relating to loan agreements, well above required benchmarks.
Mayor Mannoun said the result shows a council that is doing its job and doing it well and Council's financial staff should be congratulated for ending the year bang on budget.
"We are set to finish the year exactly where we said we would: on budget, despite severe challenges, with a surplus and cash in the bank," Mayor Mannoun said.
"That doesn't happen by accident. It's the result of strong leadership, good governance and a team focused on delivering for the community."
Mayor Mannoun said sound financial management underpins everything Council delivers.
"Good financial management is not optional, it's essential," he said.
"It means we can keep investing in the services and infrastructure our community relies on, while staying financially sustainable for the long term."
BACKGROUND – Liverpool City Council Q3 Budget Review 2025–26
The financial results reflect careful budgeting, disciplined expenditure and strong governance, aligned with NSW Office of Local Government reporting requirements.
Council's financial management approach supports the continued delivery of essential services, infrastructure investment and long-term sustainability.
The Quarter 3 review complies with Section 203 of the Local Government (General) Regulation 2021, ensuring transparency, accountability and regulatory compliance.
Financial Details
- Liverpool City Council's Quarter Three Budget Review (to 31 March 2026) confirms the organisation remains in a strong and stable financial position.
- Council is projecting a Net Cost of Services (NCOS) surplus of $781,000, closely aligned with the original budgeted surplus of $798,000.
- The Responsible Accounting Officer has assessed Council's financial position as satisfactory, with improved results compared to earlier projections.
- Operating performance remains solid, with:
- A $2.6 million increase in operating revenue
- A $0.8 million reduction in operating expenditure
- Total operating revenue projected at $289.3 million
- Total operating expenditure projected at $288.5 million
- Council's capital works program has been revised from $248.7 million to $208.3 million, reflecting updated delivery timelines and project adjustments.
- Year-to-date capital spend (to 31 March 2026): $100.6 million
- Continued investment in key areas including roads, drainage, parks and community infrastructure.
- Council is forecast to hold $433.7 million in cash and investments by 30 June 2026, including:
- $386.0 million in externally restricted reserves
- $41.0 million in internally restricted reserves
- $6.7 million in unrestricted cash
- Council is expected to meet all three key financial covenants relating to loan agreements, demonstrating strong financial sustainability:
- Debt Service Cover Ratio: 2.10 (benchmark >1.5)
- Interest Cover Ratio: 6.28 months (benchmark >3 months)
- Unrestricted Cash Expense Cover Ratio: 3.59 months (benchmark >2 months)
