Auditor-general John Doyle handed down his office’s annual assessment of all councils yesterday and found Wodonga continued to have a medium risk of longer-term financial sustainability in 2013-14.

The other 10 regional councils, including Geelong, Bendigo, Ballarat and Shepparton, have low risk assessments.

Wodonga has had the highest indebtedness percentage in the group for the past four years, with a peak of 93.07 per cent in 2011.

The figure has fallen to 73.90 per cent, but remains well ahead of Wangaratta, which is second on the list at 56.91 per cent.

Indebtedness is measured by comparing present debt levels of about $29 million against rates and other charges.

The auditor general considers indebtedness levels of more than 60 per cent lead to long-term concern over a council’s ability to repay debt from its own revenue streams.

Wodonga’s renewal gap rating of 0.35 is also in the “red alert” category, with spending on existing assets not keeping up with required levels.

But Wodonga’s indebtedness is forecast to fall 20 per cent in the next 12 months and is expected to move out of the red category next year and in 2017.

The latest auditor general report comes against the backdrop of the Victorian government confirming rate increases would be capped at inflation levels from 2016-17.

Mr Doyle made specific mention of Wodonga in his report.

“As has been the case since 2007-08, Wodonga Council was again assessed as medium risk,” he said.

“The council continues to pay off borrowings incurred to fund its manufacturing, transport and logistics precinct, Logic.”

Wodonga Council chief executive Patience Harrington said the report was consistent with other years.

She said overall the indicators pointed towards a steady improvement in finances compared to recent years.

“Logic land holdings are a significant asset and sale-ready,” she said.

“The current valuation of $41.5 million more than adequately covers Wodonga’s existing borrowings of $29.7 million.

“Logic was always a long-term project and has been a major success story in terms of land sales, job creation, additional rates revenue and investment.”