REDLAND City Council has posted a surprise $4.52million operating surplus for September, ahead of claims it was ready to announce a surplus for the previous financial year.
The better-than-expected annual result was hinted at in mayor Karen Williams’ October newsletter.
However, the result will not be made public until after the Queensland Audit Office has signed off on the annual report and mooted surplus, which is expected to happen today.
Mayor Karen Williams said she was proud council posted its first budget operating surplus for more than five years and warned councillors against criticising the outcome.
"The facts are indisputable - these accounts have been signed off by the Queensland Audit Office," Cr Williams said.
"Every councillor should applaud this result."
In May, council predicted an operating deficit for the year ending June 30 of $2million, which was expected to blow out to an $11million deficit this financial year.
The surprise September result, questioned by councillors Craig Ogilvie and Wendy Boglary, was due to a “mismatch in timing” of payments for goods and services over the month.
Finance portfolio chairman Cr Mark Edwards told Wednesday's full council meeting software and maintenance expenses did not meet up over the month, resulting in the surplus.
He said a “significant unfavourable” variance in forecasts was lower water consumption, which he hoped would increase over summer.
However, he said the better-than-expected result for the month was mainly due to the bulk of rates being paid in August with less than expected payments in September.
Cash and investments were $100.73million of which $78million were in constrained reserves.
Cr Ogilvie said he did not think it appropriate council had sent out newsletters gloating about a surplus for the previous year ending June 30.
"It would be more transparent to announce a result like this at the same time that public could see what accruals and accounting treatments had been made in order to achieve it."
An officer told the meeting council had also cut previous forecasts of the costs for maintaining landfill, which boosted figures.
Chief executive Bill Lyon told the meeting council would complete a six-month budget review by December which he expected would find a predicted $11million deficit would drop to $5million.
Mr Lyon said the annual report and accounts were with the Queensland Audit Office and were “close” to being finalised.
He said the annual report would be tabled, complete with all explanatory notes, in November as per usual.
