Toowoomba capital works put 74% into new assets, missing renewal target

Toowoomba Regional Council directed 74% of its actual capital spending to new or upgraded assets in the first month of the 2026/27 financial year, while renewals accounted for 27%, below the 60% target set out in its capital works summary.

The figures were included in the monthly financial performance statement for the period ending 31 July. The adopted budget includes a $236 million capital works program.

Overall capital expenditure was reported as $1.3 million, or 17%, favourable against budget. The capital works program itself was $1.3 million, or 24%, above budget because of land acquisitions that were not originally budgeted.

New or upgraded spending included $2 million on land acquisitions and $596,000 on the Clifton Pittsworth Road Link.

The spending split places the upkeep of existing roads and other council assets below the reported renewal target while new projects and upgrades account for most actual capital expenditure. That balance affects the work available to maintain existing infrastructure and the costs Council must manage in future budgets.

The financial statement also reported $271.2 million in unrestricted cash as at 31 July, equivalent to 12.35 months of unrestricted cash expense cover. The stated target is more than two months. Council’s debt was $180.8 million, and its leverage ratio was 1.26, within the stated target range.

Councillors received the statement after Councillor Bill Cahill temporarily left the meeting. The reported decision did not specify a deadline or corrective action for the asset sustainability result.

The report also recorded a $5.4 million budgeted operating surplus and an operating surplus ratio of 1.09% for 2026/27. Operating income was $312,000 favourable against budget, while operating expenditure was $134,000 unfavourable. Depreciation was $552,000 above budget, attributed to a higher indexation rate applied to the roads asset class after increases in fuel prices and material costs.