Toowoomba council’s $282.6m unrestricted cash contrasts with low asset renewals

The August financial report shows 13.75 months of unrestricted cash cover, but renewals accounted for only 18 per cent of capital spending against a 60 per cent renewal target.

Council: Toowoomba Regional Council

Meeting: 15/09/2026 9:00 AM

Recorded status: noted


BRIEF

Toowoomba Regional Council’s August financial report records $282.6 million in unrestricted cash and 13.75 months of expense cover, alongside $180.8 million in debt. Renewals made up 18 per cent of capital spending against a 60 per cent renewal target, while new and upgrade work made up 82 per cent. Year-to-date capital expenditure was $28.606 million against an adopted budget of $19.616 million, putting spending $8.990 million above budget. The supplied minutes are unconfirmed.


KEY FACTS

- The unconfirmed minutes record that council received the Monthly Financial Performance Statement for the period ending 31 August 2026, and the motion was carried.

- Unrestricted cash was $282.6 million and the reported unrestricted cash expense cover ratio was 13.75 months.

- Council debt was $180.8 million and the leverage ratio was 1.37.

- Renewals accounted for 18 per cent of capital spending against a 60 per cent renewal target; new and upgrade works accounted for 82 per cent.

- Capital spending was $28.606 million against an adopted year-to-date budget of $19.616 million, $8.990 million, or about 46 per cent, above budget. The capital works program note attributes above-budget expenditure to payments to developers.


ANALYSIS OF THE RECORD

- The source distinguishes a 60 per cent renewal spending target from the asset sustainability ratio target of more than 60 per cent.

- The report describes capital expenditure as below forecast when discussing unrestricted cash, while the adopted-budget table shows year-to-date spending above budget. The supplied record does not reconcile those different comparisons.

- The narrative labels the capital expenditure variance favourable, but the table and capital works program note show above-budget expenditure.


QUESTIONS FOR FOLLOW-UP REPORTING

- What changes, if any, will council make to future capital allocations to increase renewal spending?

- What effect would continuation of the current capital spending mix have on future asset sustainability measures?


SOURCE PASSAGES

The unconfirmed minutes record a carried motion to receive the Monthly Financial Performance Statement for the period ending 31 August 2026.
"RECOMMENDATION That the Monthly Financial Performance Statement for the period ending 31 August 2026 be received. REASONS FOR RECOMMENDATION Nil. Page 19 of 128 UNCONFIRMED Toowoomba Regional CouncilOrdinary Meeting of Council 15 September 2026 MOTION Moved by Councillor Tim McMahon, seconded by Councillor Edwina Farquhar That the Monthly Financial Performance Statement for the period ending 31 August 2026 be received. CARRIED Page 20 of 128 UNCONFIRMED Toowoomba Regional CouncilOrdinary Meeting of Council 15 September 2026 CORPORATE PLAN REFERENCE 4.2Continue to pursue prudent financial management and sustainability." (Item 9, recommendation, motion and carried result)

At 31 August 2026, the treasury summary records unrestricted cash of $282.623 million, borrowings of $180.809 million, an unrestricted cash expense cover ratio of 13.75 months against a target above two months, and a leverage ratio of 1.37 against a target range of zero to four times.
"The above table is subject to rounding. Consolidated Financial Performance Statement Toowoomba City Aerodrome as at 31 August 2026 Page 31 of 128 UNCONFIRMED Treasury Summary as at 31 August 2026 $'000s$'000s Cash5,321Current Liability - Borrowings17,869 Investments - At Call299,037Non-Current Liability - Borrowings162,940 Term Deposits130,500 Total Cash & Investments434,858 Total Borrowings ( Opening Balance 1/7/2026) 180,809 Less RestrictedLess Scheduled Repayments State Waste Levy(11,454) Grants In Advance (140,782) Plus Borrowings0 Total Restricted Funds(152,235)Net Borrowings 2026/270 Total Unrestricted Cash as at 31 August 2026282,623Total Borrowings as at 31 August 2026180,809 Sustainability MeasureTargetActualSustainability MeasureTargetActual Unrestricted Cash Expense Cover Ratio> 2.00 months13.75 Leverage Ratio0 - 4 times1.37 Interest Revenue 3,508Interest Expense1,274 Weighted Average Investment Interest Rate 5.05%Weighted Average Borrowing Rate 4.19% High/Low (range)High/Low (range) Council maintains cash above $80M." (Treasury Summary as at 31 August 2026)

The report identifies a Queensland Government guideline target of more than two months for unrestricted cash expense cover.
"Treasury Summary •Unrestricted Cash Expense Cover Ratio at 31 August 2026 was 13.75 months, and Total Unrestricted Cash was $282.6M against the Queensland Government Financial Management (Sustainability) Guideline target of greater than two (2) months." (Item 9, Treasury Summary commentary)

The report says the unrestricted cash expense cover ratio indicates council can meet financial commitments in the short and medium term.
"Unrestricted Cash Expense Cover Ratio - The ratio of 13.75 months is above target of greater than 2 months indicating Council is able to meet financial commitments in the short and medium term." (Sustainability Snapshot, Unrestricted Cash Expense Cover Ratio)

The report attributes the level of unrestricted cash to less-than-forecast capital expenditure at 31 August 2026.
"The level of unrestricted cash can be attributed to less than forecast capital expenditure levels as at 31 August 2026. CASH AND INVESTMENTSBORROWINGS (4.40% to 5.38%) (1.95% to 7.33%) 282,623 65% 152,235 35% Cash Composition Unrestricted Cash Restricted Cash Page 32 of 128 UNCONFIRMED Sustainability Snapshot As at 31 August 2026 Asset Sustainability Ratio (ASR) - The cumulative ratio of 9.53% is below target of greater than 60% for the period due to higher new and upgrade expenditure with total renewals comprising a 18.27% of total capital spend to date, generating an ASR of 15.14% for the month." (Treasury Summary commentary)

The report gives a split of 18 per cent renewals and 82 per cent new/upgrade, against a stated target of 60 per cent renewals.
"The percentage is 18% renewals and 82% new / upgrade with a target of 60% renewals. New / Upgrade projects include: oPayment to Developer (N) - $10.1M actuals oLand Acquisitions (N) - $2.0M actuals DRFA Summary Report (Attachment 3) •Net Operating result of Active Programs life-to-date for the period ending 31 August 2026 is a deficit of $2.73M with a $314K YTD surplus." (Item 9, Capital Projects by Group commentary)

The capital expenditure table records $28.606 million in year-to-date spending against an adopted year-to-date budget of $19.616 million, making spending $8.990 million, or about 46 per cent, above budget. It lists a full-year capital expenditure budget of $236.464 million, including $81.4 million for the Cressbrook Dam Safety Improvement Project. The capital works program note attributes above-budget expenditure to payments to developers.
"Income YTD Original Adopted BudgetYTD Actuals Original Adopted Budget 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Labour Operational CostsMaterials, Services and Other Expenditure Expensed Capital - (Prior Year) Finance CostsDepreciation Operating Expenditure YTD Original Adopted BudgetYTD Actuals Original Adopted Budget Page 26 of 128 UNCONFIRMED Consolidated Financial Performance Statement as at 31 August 2026 Original Adopted Budget YTD Original Adopted Budget YTD Variance to Budget YTD % Variance YTD 2025/26 Actuals Notes $'000$'000$'000$'000 Income Capital Revenue Grants, Subsidies and Contributions 60,987 627 703  7612 2,238 Infrastructure Charges - Cash 15,500 6,800 6,685  (115)(2) 4,737 Contributed Assets 23,000 0 0  0 0 0 Sale of Assets 6,099 0 0  0 0 209 Total Capital Revenue 105,586 7,427 7,388  (38)(1) 7,184 Expenditure Capital Expenditure Capital Expenditure - CWP 155,064 14,892 23,884  (8,992)(60) 10,915 6 Capital Expenditure - Cressbrook Dam Safety Improvement Project 81,400 4,724 4,722  20 643 Total Capital Expenditure 236,464 19,616 28,606  (8,990)(46) 11,558 CFPS Prior Year Column - The 2025/26 Actuals Column with the CFPS that was presented to the Ordinary Meeting of Council in September 2025. Key: Green movement is considered positive, Red movement is considered negative, and Orange movement is considered neutral. Grants, Subsidies and Contributions includes $34M for Cressbrook Dam Safety Improvement Project. Subject to rounding. Expenditure YTD Actuals $'000 CAPITAL 6. Capital Works Program (CWP) - above budget due to payments to developers. Page 27 of 128 UNCONFIRMED Consolidated Financial Performance Statement as at 31 August 2026 Sustainability MeasuresTarget (Tier 2) 2026/27 Original Budget 2026/27 YTD Actuals Asset Sustainability RatioGreater than 60%63.70%9.53% Asset Consumption RatioGreater than 60%66.15% Notes ## ## ## ## ## ## ## ## Notes The cumulative ratio of 9.53% is below target of greater than 60% for the period due to higher new and upgrade expenditure with total renewals comprising a 18.27% of total capital spend to date, generating" (Consolidated Financial Performance Statement, capital expenditure table and note 6)

The report's narrative describes the $8.99 million capital expenditure variance as favourable and attributes it to payments to developers.
"•Capital income - Unfavourable variance of $38K, or 1%. Page 21 of 128 UNCONFIRMED Toowoomba Regional CouncilOrdinary Meeting of Council 15 September 2026 •Capital Expenditure - Favourable variance of $8.99M or 46% due to payments to developers." (Item 9, capital expenditure narrative)


SOURCES

https://toowoomba.civicclerk.com.au/web/UserControls/DocPreview.aspx?m=1&aoid=1650&token=7e5dab94-1b9a-4660-a3a1-dd0d36a32c2c

https://minutesradar.com/news/toowoomba-civicclerk-ordinary-meeting-of-council-15-september-2026-15-09-2026-9-00-am-minutes-toowoomba-council-reports-180-8m-debt-as-rene-22a19ccd46/


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.