Weymouth Town Council had more than £4.2 million in its bank accounts at the end of June, while its reserves stood at more than £3.6 million.
The figures have been revealed in the council's first-quarter financial report for 2026/27.
The council had £4,282,908 across its three bank accounts on 30 June.
Its reserves totalled £3,628,017.
However, the report also shows that income was significantly below the amount budgeted for the first three months of the financial year.
The council had budgeted for £726,750 in income, but had actually received £383,379.
That is £343,370 less than budgeted.
Resort income below expectations
Some of the biggest differences can be found in income from resort services.
The council budgeted £76,000 from Resort Management Fees and Charges during the first quarter.
Actual income was just £3,039.
Deckchair income was also below budget.
The council expected £75,000, but received £24,031.
Advertising drums were budgeted to bring in £96,800, but the report records no income during the quarter.
Millions held in reserves
The council has money set aside for a number of specific projects and services.
This includes:
£257,268 for nursery relocation
£241,798 for public conveniences maintenance
£244,011 for Commercial Road property
£177,613 for vehicle procurement
£70,000 for Redlands
£50,000 for parks
£44,000 for its website and AI systems
The council's general reserves stood at £1,378,409.
Residents contribute through the precept
The council's 2026/27 budget includes a £4,375,270 council tax precept.
By the end of June, £2,187,635 had been recorded as received.
The council's balance sheet also shows £4,444,038 in net current assets after current liabilities.
What happens next?
The figures only cover the first three months of the financial year, so they do not show how the council will finish the year.
However, the report raises questions about why some income streams are significantly below budget while the council continues to hold millions of pounds in cash and reserves.
The next financial monitoring reports should show whether these differences are temporary or continue throughout the year.
Dorset Gazette will continue to follow the council's finances and report on how public money is being spent.