PENRITH Council achieved a $46 million budget surplus for the 2012-13 financial year, improving on the previous year's surplus of $20.87 million.
Last month the council's auditor, PricewaterhouseCoopers' Dennis Banicevic, told a council meeting it was in a good financial position and likely to meet its objectives.
"Half of the council's income is from rates and charges; only 4.8 per cent of rates are uncollected," Mr Banicevic said.
"There's a $58 million backlog to bring infrastructure up to standard, but we're gradually bringing that backlog down."
The council's report also noted that its "average return on investments for 2012-13 is 4.48 per cent".
Mr Banicevic said if sound policies were continued Penrith Council's financial position over the next 10 years should remain "sustainable and viable".
Penrith councillor Greg Davies said it was a result all could be proud of.
"As councillors we like to spend money because we get representations from the people who are our constituents," Cr Davies said.
"But this council also realises we have a budget [to work within]."
Cr Jim Aitken, who was elected deputy mayor at the same meeting, said there was never enough money for all that councillors wanted to do.
"But if you do it [the budget] right there's always enough for us to live well," Cr Aitken said.
"This has happened because our council decided to have an external audit committee; it protects us."