The latest review of how the Rural City of Wangaratta Council’s 2025/26 budget is travelling provides a sobering reality check.

The budget has gone from its projected $3.78 million surplus to a $5.69 million deficit - a near $9.5 million swing.

While council’s decision this month to payout $5 million to the Wangaratta Co-Store owners to exit the multi-storey carpark arrangement is the largest single contributor, there are other areas for concern.

Decreases in federal and state funding have played their part, but so too have decreased income from council commercial operations such as the Wangaratta Government Centre, Wangaratta Sports and Aquatic Centre and car parking revenue.

All three areas are important to the mix that helps fund council’s “meat and potatoes” lean budget and any ongoing reduction in income would have a bearing on structuring the 2026/27 council budget.

Council’s main source of income to underpin its budget remains its general rates and municipal charges, which will again be subject to the Victorian government’s rate cap of 2.75 per cent.

There is little doubt the challenging environment in which council has operated won’t be changing anytime soon.

Council is currently entering its final phase of community consultation to help formulate its 2026/27 budget, which it says will be developed in alignment with key strategic documents including the 2025 - 2029 Council Plan, the 2025 - 2035 Financial Plan, Asset Management Plan, and other council strategies and masterplans .

It’s fair to say community expectations beyond delivering essential services, maintaining infrastructure and key priorities will need to be tempered with living within our means.