YARRA Ranges council has revealed a deficit of $3.7 million for the previous financial year - less than the budgeted amount of $5.5 million.
The council approved its draft financial report for 2011-12 at a meeting last week.
The report shows the council's income for the year was more than $11 million higher than budgeted for, coming in at $161 million.
Capital works expenditure for the year was $48.6 million and new works completed totalled $28.3 million. The expenditure for major projects is behind budget due to the delay in delivery of works for key projects, such as the Kilsyth Community Hub developments and Monbulk Aquatic Centre upgrades.
Funds for these projects have been carried forward into the current financial year.
The financial statements will be included as part of the council's annual report, and will now be sent to the Auditor-General of Victoria for approval.