Wyndham City Council’s mid-year financial update has sharpened focus on staffing costs, with a new report showing employee spending is forecast to run well ahead of budget as the council heads toward a larger-than-expected deficit.
The Quarter 2 2025/26 Financial Management Report reveals employee benefits are projected to reach $209.9 million by 30 June — $3.9 million above budget.
Included in the increase is a $1.1 million organisational restructure, described by council as an internal realignment aimed at delivering longer-term efficiencies.
At the halfway mark, the report shows Wyndham is carrying a $4.2 million operating surplus. But the full-year outlook has deteriorated, with the underlying operating position now forecast to be a $7.9 million deficit — $6.7 million worse than budget.
The overspend is being driven by higher-than-expected costs across permanent and casual staffing, overtime and agency coverage, alongside fewer vacancies than anticipated.
While revenue from rates and grants is tracking slightly stronger than forecast and capital works delivery remains broadly stable, the rising cost base is emerging as the key pressure point.
With $35.6 million in borrowings expected to be drawn later in the year, the decision to absorb additional staffing-related costs during a period of widening deficit is likely to attract further scrutiny over spending discipline and workforce growth.
Wyndham’s 2024/25 accounts recorded a $363.6 million operating surplus — a headline figure largely driven by gifted assets, developer contributions and capital grants.
Stripping out those non-operating and restricted items, the more comparable underlying result was an adjusted underlying surplus of $3.3 million — a turnaround on the prior year’s underlying deficit — influenced in part by the timing of Financial Assistance Grant payments received early.
