Late Items Agenda of Ordinary Meeting - Thursday, 26 February 2026

Ordinary Meeting Late Agenda 26 February 2026

8 Reports Direct to Council

8.6 Budget Review 2

File No: Council Meetings

Author: Coordinator Financial Services

Finance and Commercial Partnerships

Appendices: App a - 2025-26 Amended Budget Financial Statements......... 13 ⇩

App b - 2025-26 Amended Minor Capital Works Program....... 19 ⇩

purpose

To amend the 2025-26 budget to reflect Council’s anticipated revenue and expenditure forecasts to 30 June 2026.

Executive Summary

Section 170 of the Local Government Regulation 2012 allows Council to amend its budget by resolution at any time before the end of the financial year. Major budget reviews are undertaken on a periodic basis to reflect management’s best estimate of its financial position at the end of a financial year.

The result of this budget review decreases the 2025-26 operating result by $14.0 million from a $711,000 surplus to a $13.3 million deficit.

Capital revenues will decrease by $4.5 million from $174.7 million to $170.2 million.

Expenditure under the Capital Program will decrease by $22.1 million from $289.5 million to $267.3 million.

The amendments in this budget review will decrease the 2025-26 forecast closing cash balance by $6.0 million to $292.5 million as at 30 June 2026.

Officer Recommendation

That Council:

(a) receive and note the report titled “Budget Review 2 2025-26”

(b) adopt Appendix A as tabled, pursuant to sections 169 and 170 of the Local Government Regulation 2012, Council’s amended budget for 2025-26 financial year incorporating:

(i) the statement of income and expenditure

(ii) the statement of financial position

(iii) the statements of changes in equity

(iv) the statement of cash flow

(v) the relevant measures of financial sustainability

(vi) the long-term financial forecast

(vii) Council’s 2025-26 Capital Works Program, endorse the indicative four-year program for the period 2027 to 2030, and note the five-year program for the period 2031 to 2035

(c) note the following documentation applies as adopted 7 July 2025

(i) the Debt Policy

(ii) the Revenue Policy

(iii) the total value of the change, expressed as a percentage, in the rates and utility charges levied for the financial year compared with the rates and utility charges levied in the previous budget, and

(iv) the Revenue Statement

(v) the rates and charges to be levied for the 2025-26 financial year and other matters as adopted 7 July 2025

(vi) the Strategic Environment Levy Policy

(vii) the Strategic Arts and Heritage Levy Policy

(viii) the Strategic Transport Levy Policy

(ix) Prescribed Services Charge Plan (No. 2) 2025-26 Financial Year and

(d) endorse the 2025-26 Minor Capital Works Program (Appendix B).

Finance and Resourcing

Adoption of the recommendation of this report will formally amend the 2025-26 Budget.

The revised closing cash balance for 2025-26 and the amendments in this budget review will decrease the cash position by $5.9 million to $292.6 million as at 30 June 2026.

Loan borrowing for 2025-26 will remain at $66.8 million.

Council operates a central treasury model and as such does not generally provide debt funding for specific projects or assets but rather uses debt funding to finance Council’s balance sheet, with the exception being for strategic projects.

Corporate Plan

Corporate Plan Goal: Our outstanding organisation

Outcome: We serve our community by providing this great service

Operational Activity: S28 - Financial and procurement services – financial and procurement management and governance, ensuring effective business management and legislative compliance, coordination and development of Council’s budget process, administration of financial systems, sundry debtors, accounts payable, financial and asset accounting, treasury, procurement, contract and supply functions.

Consultation

Councillor Consultation

All Councillors have been consulted in relation to this report.

Internal Consultation

Internal Consultation was held with relevant stakeholders.

External Consultation

No external consultation is required for this report.

Community Engagement

No community engagement is required for this report.

Proposal

Section 170 of the Local Government Regulation 2012 allows Council to amend its budget by resolution at any time before the end of the financial year.

Budget reviews are undertaken on a periodic basis to reflect management’s best estimate of its financial position at the end of a financial year. Prudent financial management also requires Council to amend its budget if there are material changes to expected revenue or expenses for the year.

The below table highlights the adjustments required to the 2025-26 budget through both operational and capital expenditure and revenues.

Table 1: Revised 2025-26 Budget Summary
(Detailed contained in Appendix A)

	2025-26	2025-26	2025-26
	Adopted Budget	Budget Review 1	Budget Review 2	Change
	$’000	$'000	$'000	$'000
Operating Revenue	711,026	714,209	697,517	(16,692)
Operating Expenditure	710,315	713,498	710,846	(2,652)
Operating Result	711	711	(13,329)	(14,040)
Capital Revenue	163,689	174,733	170,233	(4,500)
Capital Expenditure - SCC Core	216,877	214,803	191,167	(23,636)
Capital Expenditure – Other Capital	45,461	74,648	76,144	1,496
Total Capital Expenditure	262,338	289,451	267,311	(22,140)
Total Cash balance as at 30 June 2026	271,422	298,498	292,453	(6,045)

Council’s operating budget is proposed to decrease by $14 million to a $13.2 million deficit.

	2025-26	2025-26	2025-26
Adjustment	Revenue	Expenditure	NET Impact
	$'000	$'000	$'000
Total Operating Adjustments	(16,691)	(2,287)	(14,404)
Net Rates and Utility Charges	(7,789)		(7,789)
Fees and Charges	3,425		3,425
Interest Received from Investments	(1,700)		(1700)
Other Revenues	(3,706)		(3,706)
Grants and Subsidies	(3,635)		(3,635)
Internal Revenues	(3,286)		(3,286)
Depreciation		4,181	4,181
Employee Costs		(2,191)	(2,191)
Materials and Services		(4,277)	(4,277)

Capital expenditure has decreased by $22.1 million from $289.5 million to $267.3 million.

A number of the projects with deferred budget have only had part of the budget deferred. These projects have sufficient funding remaining to allow expected works to be completed in 2025-26.

Project ID	Project Name	Division	Budget (Deferral) $’000	2025-26 Revised Budget $’000

TOTAL Deferrals			(38,707)	28,370

K6669	Caloundra South Clubhouse, MS1	Division 01	(45)	5
K4237	Caloundra Aerodrome 2042 Master Plan	Division 01	(988)	1,287
K6774	Caloundra Landfill Wheel Wash Decommission	Division 01	(20)	0
K8344	Caloundra Landfill Leachate Pre-Treatment	Division 01	(865)	135
K6749	Diamond Head Seawall - Stage 1 Reconstruction	Division 02	(740)	451
H9108	SWC19-018 Oval Avenue and Arthur Street	Division 02	(500)	500
K9143	LGIP Arthur Street to Buderim Street Active Transport project	Division 02	(306)	84
H3732	Caloundra Transport Corridor Upgrade (CTCU) Section 1	Division 02	(8,500)	3,000
H4976	Caloundra Transport Corridor Upgrade (CTCU) Section 2	Division 02	(600)	3,100
K9294	Caloundra Centre Activation - Town Square	Division 02	(1,200)	2,300
K7217	Dicky Beach Holiday Park - Amenities Project	Division 02	(316)	610
K6628	Military Jetty pile and sub frame works	Division 02	(400)	50
K8846	Reserve 1000 Outdoor Amenities Facility and Equipment Storage	Division 02	(564)	300
H5950	LGIP Burke Street Pathway	Division 02	(240)	35
K6595	Kawana Aquatic 25m Pool resurface	Division 03	(1,000)	85
K2882	SWC21-077 SCC Stadium North	Division 03	(7,400)	1,205
H8165	Sunshine Coast Stadium expansion	Division 03	(300)	200
K6028	Honey Farm Multi-Use Changerooms	Division 03	(200)	300
K7513	Kawana Dolphins Relocation	Division 03	(100)	50
K6593	Noel Burns Park Public Amenity Renewal	Division 03	(80)	100
K9348	Beach access 252 stairway renewal	Division 03	(135)	25
K8359	Nelson Park, Alexandra Headland - Entrance Feature	Division 04	(72)	8
H3805	LGIP Alexandra Headland to Maroochydore City Centre Active Transport Link	Division 04	(91)	109
K6752	Maroochy Geobag groyne end structure modification	Division 04	(150)	200
K3249	Maroochydore Land Investigation	Division 04	(220)	0
H4585	LGIP Mooloolaba Esplanade Active Transport Link	Division 04	(90)	60
H4624	LGIP Mooloolaba to Mountain Creek - Stage 1 Mooloolaba Esplanade to Palm Drive	Division 04	(630)	120
H6800	LGIP River Esplanade Active Transport Link	Division 04	(149)	51
K2838	Mooloolaba Foreshore Stage 2 - Central Meeting Place	Division 04	(500)	7,303
K8469	BA 232 John Hotton Park, Viewing Shelter	Division 04	(90)	30
K6463	SWC21-057c Palms Park	Division 04	(200)	0
K6414	SEQCSP - Khancoban Drive Park - District Park Development	Division 06	(360)	11
K8072	Suncoast Clippers Basketball Court Expansion	Division 06	(100)	0
K6768	Buderim RRC Weighbridge Road Review & Upgrade	Division 06	(100)	200
K4250	LGIP Mooloolaba to Mountain Creek - Stage 2 Amarina Avenue to Karawatha Drive	Division 06	(665)	135
H5955	LGIP Karawatha Dr Cycle Lanes	Division 06	(1,826)	174
K7983	Birdwing Forest Place - Landslip Study	Division 07	(273)	77
H9942	Bell Road - Pathway Construction	Division 07	(196)	20
H4861	LGIP Stringybark Rd Active Transport Link	Division 07	(131)	127
K6041	Ash Road Park Diddillibah Amenities investigation and design	Division 07	(200)	15
K8623	Kuluin Neighbourhood Park - Half Basketball Court - Investigate, Design & Construction	Division 07	(135)	5
K6234	Maroochydore Sailing Club - Roof replacement	Division 08	(135)	15
K7588	Bradman avenue revetment wall Yinni street to Kuran street	Division 08	(200)	100
K9089	STIP - Maroochydore State High School - Bus Zone Upgrade (Tranche 7)	Division 08	(1,150)	50
K2723	Camp Flat Road Upgrade Stage 4	Division 09	(700)	300
K2725	Camp Flat Road Upgrade Stage 2	Division 09	(140)	10
K6773	Nambour Landfill Wheel Wash Decommission	Division 09	(20)	0
K4199	Renewal Energy Facility (Nambour)	Division 09	(1,775)	25
K8167	Coolum Beach Holiday New Park Office, Reception and Residence Replacement	Division 09	(268)	1,232
H8416	Emu Mountain Road Pathway Construction	Division 09	(491)	676
K6310	Sunshine Coast Nature Base Recreation Precinct	Division 09	(800)	466
K4173	Maroochy North Sport and Recreation Precinct (combined preliminary planning)	Division 09	(500)	0
K8025	SEQ City Deal - Blue Heart Recreational Project	Division 09	(100)	385
K1303	Kenilworth Streetscape Upgrade	Division 10	(150)	50
K4192	Mapleton Rural Transfer Station Hardstands	Division 10	(80)	360
H4604	Nambour Namba Place Revitalisation Project - SEQCSP	Division 10	(1,034)	1,665
K8605	SEQCSP Namba Ped Crossing	Division 10	(150)	150
K2827	Hospital Road, Nambour - Pathway and Kerb Renewal	Division 10	(58)	0
K1173	North Arm Park Public Amenity renewal	Division 10	(100)	220
H7363	North Arm School Parking Improvements, Yandina Creek Road, North Arm	Division 10	(30)	70
K1102	LGIP Land for Parks and Community Facilities Implementation	Whole of Council	(148)	130

Legal

The report complies with Council’s legislative obligations to amend its budget in accordance with Section 170 of the Local Government Regulation 2012.

Policy

There are no policy implications associated with this report.

Risk

The 2025-26 budget has been developed to ensure long term financial sustainability for the Sunshine Coast region. A key element to long term financial sustainability is achieving the targeted operating result.

The following key elements of the 2025-26 budget are based on management estimates and assumptions:

· Rates and charges revenue includes population and property growth forecasts

· Interest revenue and finance costs includes interest rate forecasts

· Depreciation includes asset valuation, useful life, asset condition estimates

· Recurrent capital expenditure includes capitalisation estimates

Management has used its best endeavours and judgment to determine suitable estimates and assumptions based on the available data, with reference to independent sources and relevant historic information where possible. There is a risk that the actual results may vary from the estimates. Material variances will be monitored and reported to Council through the Monthly Financial Performance Report and periodic budget reviews.

Continued monitoring of the delivery of the capital works program within budgeted scope and cost.

Previous Council Resolution

Ordinary Meeting 18 September 2025 (OM25/82)

That Council:

(a) receive and note the report titled “Budget Review 1” and

(b) adopt Appendix A as tabled, pursuant to sections 169 and 170 of the Local Government Regulation 2012, Council’s amended budget for 2025-26 financial year incorporating:

(i) the statement of income and expense

(ii) the statement of financial position

(iii) the statement of changes in equity

(iv) the statement of cash flow

(v) the relevant measurers of financial sustainability

(vi) the long term financial forecast

(vii) Council’s 2025-26 Capital Works Program, endorse the indicative four-year program for the period 2027 to 2030, and note the five-year program for the period 2031 to 2035.

(viii) Debt Policy

(c) note the following documentation applies as adopted 7 July 2025

(i) Revenue Policy

(ii) the total value of change, expressed as a percentage, in the rates and utility charges levied for the financial year compared with the rates and utility charges levied in the previous budget

(iii) the Revenue Statement

(iv) the rates and charges to be levied for the 2025-26 financial year and other matters as adopted 7 July 2025

(v) the Strategic Environment Levy Policy

(vi) the Strategic Arts and Heritage Levy Policy

(vii) the Strategic Transport Levy Policy

(viii) Prescribed Services Charge Plan (No. 2) 2025-26 Financial Year and

(d) endorse the Minor Capital Works Program (Appendix B).

Special Meeting 7 July 2025 (SM25/4) in part

1. STATEMENT OF ESTIMATED FINANCIAL POSITION

That Council receive and note the statement of estimated financial operations and financial position of the Council in respect to the 2024-25 financial year as set out in Attachment 1 pursuant to section 205 of the Local Government Regulation 2012.

10. ADOPTION OF BUDGET

That Council adopt Appendix A as tabled, pursuant to sections 169 and 170 of the Local Government Regulation 2012, as Council’s budget for 2025-26 financial year incorporating:

i. the statement of income and expenditure

ii. the statement of financial position

iii. the statement of changes in equity

iv. the statement of cash flow

v. the relevant measures of financial sustainability

vi. the significant business activity statement

vii. the long-term financial forecast, as detailed in items 10(i) to 10(iv) above

viii. the Revenue Policy (adopted by Council resolution on 21 May 2025)

ix. the total value of the change, expressed as a percentage, in the rates and utility charges levied for the financial year compared with the rates and utility charges levied in the previous budget

x. the Revenue Statement for the period 1 July 2025 to 30 June 2026

xi. Council’s 2025-26 Capital Works Program, endorsing the indicative four-year program for the period 2027 to 2030, and noting the five-year program for the period 2031 to 2035

xii. the rates and charges to be levied for the 2025-26 financial year and other matters as detailed above in clauses 2 to 9; and

xiii. the 2025-26 Minor Capital Works Program.

Related Documentation

2025-26 Adopted Budget

Critical Dates

Following adoption of this report, subsequent monthly financial reports will reflect the amendments in the current budget.

Implementation

Council’s budget will be formally adjusted following the Council resolution and included in future monthly reports.