Warrnambool council will step in to manage the city's animal shelter in the "short to medium term" when the RSPCA ceases to be involved later this year.
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In the wake of the news, the council has ruled out any increase to animal registration fees in the next council budget.
And it has assured the community it would be business as usual.
The council's chief executive officer Andrew Mason said it was now looking at options for the future running of the facility long-term.
That could mean keeping it in-house or taking it to market for another operator to step in.
But in the short to medium term, the changes would mean the council will manage the facility itself.
"We'll effectively take it over at the end of June and we'll manage it, and we're gearing up to make sure that we can do that," Mr Mason said.
"In a practical sense, there will be very little change in the operation.
"There will continue to be a shelter there."
He said the council would also still be actively rehoming animals, ramping up its social media presence to make sure that happened more effectively.
The council will also invest about $800,000 in upgrading the facility - which councillors have said was in "dire need" of attention - over the next few years.
"The first stage is to change the existing dog enclosures," he said.
The decision impacts 15 staff at the shelter and 25 volunteers.