The review was presented at the council's monthly meeting on February 21 and showed savings were made in areas including: interest; fire prevention; reduced street lighting; and sign maintenance.

The council's finacial year ends on June 30. The director of corporate services, Chris Cowley, said that every effort would be made to ensure the budget stayed on track.

"It is not advisable to spend a surplus before it is actually realised at year end," Mr Cowley said.

The council by-election, taking over the management of the Trentham pool and repairing two community housing units and the Daylesford Town Hall chimneys were areas that cost the council up to $25,000 for each area.

"To compensate for the negative impacts on the budget, officers have looked at areas where either revenue can be maximised or expenditure decreased to ensure that a balanced or surplus budget is achieved," he said.

The council's chief executive officer, Victor Szwed, said that $34,800 was a small surplus.

"Council is travelling on the right side of the ledger," he said.

Mr Szwed said the areas that cost the council money was work that had to be done.

"The chimneys are 130 years old and at risk of falling," he said.

"It's work we have to do."