Rates & spending · Redland City Council
Redland’s August surplus reaches $35.9m as asset renewal ratio is below target
Redland City Council recorded $350.5 million in cash and investments at the end of August, but reported infrastructure renewal spending of $4.3 million against $13.4 million in year-to-date depreciation.
Reporting from public council minutes. How this article was prepared
Redland City Council recorded a $35.9 million year-to-date operating surplus at 31 August, $1.5 million above budget, while its Asset Sustainability Ratio was below target. Councillors noted the August financial position, results and sustainability ratios at the 16 September meeting.
Cash and investments totalled $350.5 million at the end of August, up from $308.19 million in July. The financial report said monthly cash movements would vary with the timing of rates, levies, utility notices, grants and capital-project spending.
The report also said opening balances were still being finalised and audited. Queensland Audit Office certification was expected in early October, after which the financial position would adjust. Council said it was broadly tracking its adopted budget, while noting that most differences at this early stage of the financial year were considered timing-related.
Council recorded $4.3 million in infrastructure renewal spending against $13.4 million in depreciation for the year to date, and the Asset Sustainability Ratio was below its five-year rolling-average target of more than 60%.
The report cautioned that the ratio can be lower when Council invests in new or upgraded facilities rather than replacing existing assets. It said the measure should be considered over several years rather than treated as a conclusion based on one month’s result. The separate Asset Consumption Ratio was 59.95%, just below its 60% target.
The resolution was to note the August financial position, results and ratios. It was carried 9-0, with Mayor Jos Mitchell and Councillor Paul Bishop absent.
What deserves a closer look
The source supports reporting the surplus and cash position alongside a below-target asset renewal indicator, but it cautions that the Asset Sustainability Ratio should be assessed over several years.
The report describes most early-year budget differences as timing-related, so the August figures do not by themselves establish a full-year result.
Resolution 2026/199 notes the report; it does not approve a new financial program. The nine councillors named as voting for the motion match the recorded 9-0 result.
Questions for follow-up reporting
What were the final audited opening balances after Queensland Audit Office certification?
How did the Asset Sustainability Ratio change over the remainder of the 2026-2027 financial year?
Which infrastructure renewal projects made up the $4.3 million recorded through 31 August?
What happens next
The report said the financial position would adjust when Council received Queensland Audit Office certification, expected in early October 2026. The supplied record does not establish whether certification was received.
Check the record
These passages were matched to the source text. Read them in context in the original minutes.
Council noted the August 2026 financial position, results and ratios in a resolution carried 9-0. Jos Mitchell and Paul Bishop were absent.
Option Two That Council resolves to request additional information. OFFICER'S RECOMMENDATION/COUNCIL RESOLUTION 2026/199 Moved by: Cr Wendy Boglary Seconded by: Cr Rowanne McKenzie That Council resolves to note the financial position, results and ratios for August 2026 as presented in the attached Monthly Financial Report. CARRIED 9/0 Crs Wendy Boglary, Peter Mitchell, Paul Gollè, Lance Hewlett, Shane Rendalls, Julie Talty, Rowanne McKenzie, Tracey Huges and Jason Colley voted FOR the motion. Crs Jos Mitchell and Paul Bishop were absent from the meeting.
Item 13.1, Council Resolution 2026/199 and voting result, page 25
Open original minutes ↗The reported operating surplus was $35.9 million, $1.5 million above the year-to-date budget, and Council said it was broadly tracking its adopted budget. Most differences from budget in the second month of the financial year were considered timing-related.
At the end of August, Council is tracking broadly in line with its adopted budget. Council reported an operating surplus of $35.9M at the end of the period, which was $1.5M better than budget for the year to date. The key movements impacting the result are set out in the attached report. As this is only the second month of the financial year, most differences from budget are considered timing-related and are expected to balance out as planned activities continue.
Item 13.1, Issues, page 23
Open original minutes ↗Cash and investments totalled $350.5 million at the end of August 2026, compared with $308.19 million in July. The monthly cashflow position was expected to vary with the timing of rates, levies, utility notices, grant receipts and capital-project expenditure.
Council's cash and investments totalled $350.5M at the end of August 2026 (July: $308.19M), with Quarter 1 rates due date being 14 August 2026. Cash inflows exceeded cash outflows for the month. While net cashflows are forecast to remain positive for the year ending 30 June 2027, the monthly position will vary depending on the timing of quarterly rates, levies and utility notices, grant receipts, and expenditure on capital projects.
Item 13.1, Issues, page 23
Open original minutes ↗Opening balances were still being finalised and audited. The report said the financial position would adjust when Council received Queensland Audit Office certification, expected in early October.
Opening balances are still being finalised and audited, therefore, the financial position will adjust when Council receives Queensland Audit Office (QAO) certification, expected early October.
Item 13.1, Issues, page 23
Open original minutes ↗The Asset Sustainability Ratio was below target, with $4.3 million spent on infrastructure renewals against $13.4 million in year-to-date depreciation. Its five-year rolling-average target was greater than 60%. The report said the ratio can be lower when investment favours new or upgraded facilities and should be considered over several years.
The Asset Sustainability Ratio (ASR) was below target at the end of August 2026. Council spent $4.3M renewing infrastructure assets, compared with $13.4M in depreciation for the year to date. The ASR is a strategic trend indicator that shows whether Council is renewing existing assets, such as roads, buildings and other infrastructure, at a rate that keeps pace with their use and ageing, with a five year rolling average target of greater than 60%. The ratio can be lower when Council invests more in new or upgraded facilities rather than replacing existing assets. For this reason, it is better to consider the ASR over several years, rather than relying on one monthly result.
Item 13.1, Strategic Implications, page 24
Open original minutes ↗The Asset Consumption Ratio was 59.95%, against a 60% target.
STRATEGIC IMPLICATIONS Council has either achieved or favourably exceeded the following key financial sustainability ratios as at 31 August 2026: •Operating Surplus Ratio •Operating Cash Ratio •Unrestricted Cash Expense Cover Ratio •Leverage Ratio GENERAL MEETING MINUTES 16 SEPTEMBER 2026 Item 13.1 Page 24 • Net Financial Liabilities Ratio The Asset Consumption Ratio was 59.95%, which is only marginally below target of 60%.
Item 13.1, Strategic Implications, pages 23–24
Open original minutes ↗Source record
Reporting from Redland City Council’s General Meeting minutes for 16 September 2026, item 13.1, the August 2026 Monthly Financial Report.
Key facts from the minutes
- Council noted the August 2026 financial position, results and sustainability ratios rather than approving a new financial program through this item.
- The reported year-to-date operating surplus was $35.9 million, $1.5 million better than budget.
- Cash and investments were reported at $350.5 million at the end of August 2026.
- Council reported $4.3 million in infrastructure renewal spending against $13.4 million in year-to-date depreciation, with the Asset Sustainability Ratio below target.
- Opening balances were still being finalised and audited, with Queensland Audit Office certification expected in early October 2026.
Why it matters
- The figures show a reported surplus and substantial cash holdings, but also a below-target asset-renewal indicator. The council’s own report says the renewal ratio needs to be assessed over several years, so the August result does not establish a longer-term change in infrastructure sustainability.