SWAN Hill Rural City Council's finances are running at $12,800 worse than was budgeted for the 2012-13 financial year.

A report to last night's council meeting indicated that council's forecast surplus from rates was now $32,850.

The figure had been affected by a $110,000 drop in interest on investments, a $56,000 loss by the Pioneer Settlement, $50,000 to recruit a new chief executive and a $15,000 fall in parking meter revenue.

On the plus side, there had been decreases in employee costs ($170,000), workcover costs ($34,000) and roads projects ($79,000), an increase in rates ($27,000) and a rise in the number of ratepayers seeking the early payment discount ($10,000).

The report projected that the full financial year result would be a surplus, assuming on-budget completion of major projects and programs by June 30 next year.