Staff have also had their spending limits increased after councillors adopted a new procurement policy and used their power to lift the amount it allowed its chief executive officer to spend.

But the spending limit increase could have been much higher, Cr Richard Ziegeler revealed.

Cr Ziegeler said councillors had actually pulled back on the amount that was initially suggested, but he didn't detail what that amount was.

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Moyne Shire, which has a smaller budget, allows its CEO to spend up to $300,000 while the similar-sized Greater Shepparton City Council has a $500,000 limit.

"I'm always of the mind that we don't have to blindly follow other councils," Cr Ziegeler said.

"I'd like to think that Warrnambool can make up its own mind without actually having to compare ourselves with anyone else."

He said the amount was benchmarked against similar sized councils.

"Although it is not a bad idea to check to see that we are much better than everyone else," he said.

Cr Ziegeler said the increase meant the CEO had more at his disposal for day-to-day operations.

"I don't think we need to go as far as what was suggested initially," he said.

The council agenda for Monday's meeting noted the CEO's spending limit had not increased for a "significant" number of years and had not taken into account the impact of inflation on operational and capital expenditure.

The change aims to ensure that the day-to-day operations of the council continue unhindered and in a timely and efficient manner.

Cr Ben Blain said the CEO delegation was a very important part of an effective council.

"By passing this motion, council's agreeing to give the CEO the power to approve purchases up to $400,000," Cr Blain said.

"I think the limit's appropriate when taking into account the size of our current budget being about $90 million.

"I don't think it's too low to impact any of the efficiencies of council or too high that it takes away any transparency or good financial management of council."

Cr Blain said as the city moved into a post-COVID recovery, councillors could review and change the amount.

Cr Otha Akoch said he supported the increase from $300,000 to $400,000.

Cr Debbie Arnott said the new procurement policy demonstrated to ratepayers its accountability and ensured ethical behavior in the public sector.

Mayor Vicki Jellie said the audit and risk committee had approved the change in August.

"We take their lead in agreeing and going ahead with this," she said.

Both the procurement policy and the delegation to the CEO to increase spending limits were passed unanimously.

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