MOUNT Alexander Shire could slide into a $3.4 million deficit next financial year.
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The blow out would wipe away a $1.7 million surplus posted this financial year, according to draft papers that could officially go out for public review after tonight's council meeting.
A $4.9 million spike in "service provider" payments appears to be driving the deficit, according to the draft budget.
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The document lists a host of big projects including $2.8 million to upgrade for the Maldon Streetscape plan and a $791,000 payment on a roads and community infrastructure program.
Several $60,000 strategic planning projects are also identified.
No-one from the shire was available to discuss the draft budget on Monday.
Mount Alexander is not the only central Victorian council preparing to post a deficit budget next financial year.
Loddon Shire - a small rural council to Bendigo's north - is considering going further into the red.
The shire often posted deficits and will likely do so again in coming years, director of corporate services Sharon Morrison said.
"We put extra money aside for big projects," she said.
Loddon is forecasting higher-than-expected deficits, though.
Ms Morrison said that was because of new projects with state and federal governments, Ms Morrison said.
"Our biggest challenge, really, is getting the staff to implement the projects we have money for," she said.
Ms Morrison said Loddon's growing deficit is not being driven by a hit to revenue, unlike other councils that rely on car parking and major facilities for funding.
Her council will use extra money expected to flow in from rates to help its communities through the recovery.
Loddon wants to use a two per cent rate rise to pay for COVID-19 crisis and support projects, Ms Morrison said.
Other central Victorian councils expect to remain in surplus next financial year, according to their draft budgets.
The only exception is the Central Goldfields Shire, which is yet to release its draft for community consultation.
Mount Alexander Shire councillors will officially vote on Tuesday on whether to release the budget for public exhibition, but an early draft has been published online as part of the agenda for their meeting. Changes could be made prior to their vote.
The meeting takes place from 6.30pm and will be available online.
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