The pendulum has cut a negative line into Rural City of Wangaratta Council's finances with the latest review showing an almost $9.47 million swing, from surplus to deficit.

A $5 million payout to the Wangaratta Co-Store owners has allowed council to exit the contract from 1 March, and this has also impacted income due to lower cash ($99,000) on hand from the termination.

However, it's not only the Co-Store parking contract bail out which is hurting council's coffers.

Council's budget predicted a $3.78m surplus for the year, however, the quarter two forecast has council with a $5.69m deficit by 30 June.

Other catalysts for the unfavourable movement include home care grants decreasing by $923,000, a $50,000 New Year's Eve event grant that didn't eventuate, early learning services $419,000 less, aged care assessments dropping $244,000, and Wangaratta Government Centre vacancies reducing income by $155,000.

Parking revenue has been reduced by $138,000 which council officers say reflects current market conditions around usage of the parking app.

There has also been a reduction in Wangaratta Sports and Aquatic Centre (WSAC) stadium hire and memberships by $88,000.

It's not all doom and gloom, with a bunch of favourable movements in the Q2 review including: fees and fines $55,000; natural disaster claim $81,00o; and employee benefits $862,000 (due to lower staffing requirements for aged care and early learning).

Expenditure of $6.8m towards council’s capital works program had been spent by 31 December 2025, with a further $4.09m of works committed.

The full year expenditure forecast has reduced by $281,000 from the Quarter 1 Adopted Forecast.

Key changes include:

* deferral of WSAC power efficiency project to following financial years - $280,000;

* deferral of After Hours Drop off - Domestic Animals to following financial years - $41,000;

* deduction of IT asset renewal - $30,000; and

* reduction of asset renewals - $14,000.

The latest review figures will among items discussed at council's February meeting, which the public can attend from 6pm at the council chambers in Ovens Street, Wangaratta on Tuesday, February 24.