Lost revenue and deferred rates payments during the coronavirus pandemic have resulted in Wangaratta Council cutting $2.8 million from its planned spending in the 2019-20 financial year.
The proposed cuts, and some other spending, will be put before councillors for approval at Tuesday's meeting.
Like most other councils, Wangaratta offered ratepayers the chance to defer some of their payments if they were going through hardship.
Documents released on Friday revealed that many people took up this offer and $1,124,000 of rates due to be paid to the council have been deferred until June 30.
Some revenue has been lost completely. Wangaratta usually charges $1 per hour for parking in its central business district, but that is free until June 30, resulting in a loss of $106,000.
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The Wangaratta Performing Arts and Convention Centre also lost $24,000 in revenue from shows, and the council will spend $203,094 for an external company to maintain the facility while it is closed.
"This is based on latest estimates and the government restrictions in place to combat the spread of COVID-19 as at April 30, 2020," the report stated.
"The coronavirus COVID-19 pandemic has significant immediate and ongoing impact on council, staff and our community."
The COVID-19 pandemic has significant and ongoing impact on council, staff and our community.Wangaratta Council
The amount of capital works in the municipality will drop by $2.804 million to $40.449 million to mitigate the losses.
The savings include $455,000 in kerb and channel works delayed until the next financial year and $154,000 in pedestrian improvement in the central business district cancelled.
But the council has instead decided to spend money on Wangaratta Indoor Sports and Aquatic Centre during the shutdown, to take advantage of the facilities being closed.
The council will take over running WISAC from the YMCA in October, so with the gym closed during coronavirus restrictions, work on rebranding, refurbishing the cafe and information technology upgrades will start early.
The budget for this has been increased from $106,550 to $215,930.
The council also had to upgrade its own information technology system to ensure staff could work from home, at a cost of $325,000.
Tourism events have been postponed or cancelled during the pandemic, so while Wangaratta Council will still award annual tourism grants, organisers will not receive money immediately.
Grants include $5000 for the King Valley's La Dolce Vita Festival and $3,750 for the Transmotto 8 Hour dirt bike event.
It is proposed that half the funding be paid closer to the event and half after it has taken place.