Wyndham council has announced its wage bill will be more than $3.9 million higher than expected.
Figures from the second quarter of council’s 2025-26 financial management report estimates employee entitlements will reach $209.9 million by the end of the financial year.
According to the report, about $1.1m of that increase can be attributed to a structural realignment of the organisation.
According to the council, this increase is partially due to new positions created by the realignment, as well as roles funded by additional grants that are anticipated to be received.
The overspend has also resulted from a lower-than-budgeted vacancy rate, with additional temporary agency staff required to cover vacant permanent roles.
Expenditure on permanent and casual salaries, agency-sourced temporary staff, overtime and associated superannuation also exceeded budget by $334,000.
Expenditure on training and development shows a year-to-date favourable position of $596,000 compared to the expected budgeted cost.
Despite the budget blowout, the report stipulates these changes are expected to lead to higher long-term efficiency.
Council is expected to run an operating deficit of $7.9 million, despite reporting a $4.2 million surplus at the half-way mark of the financial year.
Capital works are expected to run over budget by more than $11 million.
Council allocated $165 million in this year’s budget for capital works, but the quarter two forecasts expect the final bill to exceed $176.9 million.
General maintenance shows an increase of $2.4 million, primarily driven by higher reactive maintenance contract costs, and increased traffic engineering costs aligned with grant-funded project progress and payment schedules.
Capital revenue was $119.3 million which is $872,000 below budget.
However, the shortfall is said to be primarily the result of lower capital grants received in the first half of the year.
The report lists revenues and total money from grants as being higher than anticipated.
Council is forecasting $533.2 million in operating revenue, which is $4.7 million above the full-year budget of $528.6 million.
Better income from landfill charges is listed as a contributing factor for the higher higher than expected revenue projection.
