Council & Business
16 June, 2026
Council finances behind but fixable
Central Goldfields Shire Council’s quarterly finance report reveals they have spent more than planned in-part due to backfilling vacancies with contractors.
Central Goldfields Shire Council are behind on their budget goals, due to overspending, but still expect to end the financial year largely as planned.
The quarterly finance report considered at May’s council meeting compared council’s financial reality to last year’s adopted 2025/26 budget.
This showed for the period ending March 31 council’s net operating result had a deficit of $4.1 million, compared to $0.9 million as planned, largely due to a grant’s timing.
Because the Federal Assistance Grant of $2.8 million was received in 2024/25, even though it related to the next financial year, it had to be accounted for in the year it was received.
Councillor Geoff Bartlett said this grant was an “anomaly within the system” which skewed the results.
“It makes it look worse than what it was,” he said.
However, adjusting for this, council’s operating deficit is $1.3 million or $448,000 more than planned.
Council’s reasoning for the deficit included a $0.5 million overspend in materials and services with $314,000 going toward contactor costs.
This was to backfill vacancies across executive management, finance, people and culture, governance and statutory services positions.
According to the report, this continues to drive their underlying deficit.
Other reasons given for this quarter’s result was $1.05 million of unfavourable capital grant outcomes which was partially offset by $0.4 million in reduced depreciation expenses.
Cr Bartlett said he was concerned and disappointed that material and services costs “blew out”.
“I’d just like to urge that we have to stick to our budget and do better for the next quarter at least,” he said.
Councillor Murphy said that “things do blow out” but they need to focus on the future.
“Things are not fine but they’re going to be moved over a bit more and I think this next budget is going to help us a bit longer,” he said.
The 2026/27 budget is the first in their plan to reduce their underlying deficit across four years.
The deficit for 2025/26 is forecast to be $5.5 million increasing to $7.2 million in 2028/29 if that financial path was continued.
However, under their new approach, the deficit is expected to be reduced to $1.4 million by 2029/30.
It’s a change in direction which comes after the shire’s CEO, Peter Harriott, joined in July last year.
Cr Murphy said they have had “good debate” in the time since.
“We’ve got a very strong CEO who doesn’t take much crap from me and I think that’s good,” he said.
“I’m happy with this financial report.”