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. Council: Redland City Council Meeting: 16 Sep 2026 Recorded status: noted BRIEF Redland City Council recorded a $35.9 million year-to-date operating surplus and $350.5 million in cash and investments in its August 2026 financial report. Infrastructure renewal spending was $4.3 million against $13.4 million in year-to-date depreciation, and the Asset Sustainability Ratio was below target. Opening balances were subject to finalisation and audit, with Queensland Audit Office certification expected in early October. KEY FACTS - 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. ANALYSIS OF THE RECORD - 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? RECORDED NEXT STEPS - 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. SOURCE PASSAGES 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) 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) 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) 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) 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) 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) SOURCES https://redland.infocouncil.biz/RedirectToDoc.aspx?URL=Open/2026/09/CO_20260916_MIN_2430_AT.PDF https://minutesradar.com/news/redland-infocouncil-council-16-sep-2026-16-sep-2026-minutes-redland-reports-35-9m-surplus-as-infrastructure-renewals-trail-depreciation/ Prepared from public council minutes using automated drafting and checks. No meeting attendance or interviews are implied. Check the original record and seek comment before republishing claims or analysis. Illustrations are generic, not depictions of actual projects.