The third-quarter report updated councillors on the overall financial position and performance of each group of activities over the first nine months until the end of March with the council's financial year ending on June 30.
It indicated an operating deficit of $282,000 after nine months, but chief executive Michael Ross said staff were working to resolve that.
Management staff would meet today to identify overexpenditure, reduced revenue and where further savings could be made.
Although many factors led to the overall position, major items which had contributed to the deficit were beyond the council's direct control - a $375,000 increase in insurance costs, $150,000 reduction in interest because of lower interest rates and $112,000 with no dividend from its contracting company, Whitestone Contracting Ltd.
Some of that had been offset by savings or increased revenue.
In addition, there was a $426,000 write-down in the value of renewed assets, which was an "accounting adjustment" that would have no effect on rating or funding.
"Officers have made every effort to mitigate the impact of these items and will continue to do so for the balance of the [financial] year," Mr Ross said.
However, a variation of that size cannot be completely reduced so the council would be reporting an operating deficit at the end of the year, he added.
The council spent $30.682 million (budgeted $29.463 million) and had operating revenue of $29.99 million (budgeted $29.279 million) during the nine months.
