Council has reported a solid financial position for the October to December 2025 quarter with the operating surplus increasing from $1.4 million in the first quarter to $4.8 million this quarter.
Contributing factors include higher than expected interest on investment income, increased waste management rates, lower spending in the General Fund, and higher water connection charges in the Water Fund.
Director City Performance Katie Buckman said that through deliberative financial focus, Council's unrestricted cash grew to an $8 million surplus at the end of the quarter, despite the additional expense associated with last year's organisational restructure, scheduled loan repayments and rising capital works costs.
"Quarter Two sees a strengthening of our financial position while continuing to deliver services for our community," Ms Buckman said.
"Even with the pressures of organisational change and increasing project demands, our staff have delivered a great result," she said.
"We're definitely seeing how improvements in financial culture across the organisation over the past two years has contributed to this stronger fiscal outcome."
The December quarterly review identified further improvements in the projected General Fund deficit, from $16.4 million to $14 million. Other positive results show a net favourable result in the Water Fund's position to a projected surplus before capital of $5.5 million, up from $4.3 million. Council's Sewer Fund results saw projections dip slightly from $15.022 million last quarter to $15.007 million this quarter.
Council has also made a concerted effort to repay unrequired loans which has resulted in a debt reduction of $12.5 million over and above standard loan repayments.
Progress also continues on the Sustainable Financial Futures Plan which was adopted in December 2024. This long-term financial plan originally aimed to save $7 million from the General Fund in 2025–26, with another $1 million in savings each year for the following three years. Current results show Council is already on track to beat that target with $7.45 million in savings made through:
· Fees and charges review - $500,000
· Employee cost savings - $5.1 million
· Reduced operational costs from internal 3% challenge initiative - $1.1 million
· Plant and fleet operational savings achieved through reduced holdings - $450,000
· Reduced facilities operating hours - $286,000 per annum.
In Quarter Two alone, $299,000 was added to the Financial Sustainability Reserve from one-off plant and fleet sales and related savings. Year-to-date, these sales total $791,000, with $450,000 in associated savings.
Council has now completed 42 of the 75 actions in the plan. In December, the Community Infrastructure Needs Analysis and internal Budget Policy was completed.
The Quarterly Performance and Budget Report will be presented at Council's Ordinary Meeting on Tuesday 24 February. Find the full report on Council's website.
