Director of Corporate Services Michael Tidey said that revenue grants and interest had helped put the council in a favourable position.

However depreciation of the council's roads had been higher than expected as had insuring its art and museum collection during the Royal Park refurbishment.

The depreciation costs will impact the council's bottom line this year.

Mr Tidey said that the overall capital works programs were also forecast to meet the budget, with ``good progress'' being made on the council's Flood Levee Project.