Banana Shire Council has delivered its budget for the year ended 30 June 2025. Council is anticipating an operating surplus of around $17.5 million based primarily on higher receipts due to flood damage restoration works. Council has delivered a record capital works program totalling over the last financial year resulting in a reduction in cash holdings from $57 million to $32 million.

Council has continued its strategy of improving the financial performance of the organisation as is shifting the assessment of our financial sustainability from moderate to low risk of not being financially sustainable.

Council has delivered this financial result while continuing its investment in upgrading roads and water infrastructure over the year delivering a $66 million capital program including substantial investment in flood damage restoration works.

Major projects delivered include:

• Moura Museum and Library                                                    $  7,600,000
• Moura Theodore Road                                                            $  1,570,352
• Cracow Road Upgrade                                                            $  1,223,382
• Harsants Road Gravel Resheet                                              $  1,300,000
• Flood Restoration Works                                                          $42,000,000

Across all rate categories Council has applied a 7.3% rate increase for the financial year ending 30 June 2024. Residential ratepayers will in the main receive a 5% - 6% rate increase.

Rural land revaluations have resulted in a wide range of variations in rural rates this year. Some rural ratepayers will see a reduction in their rates while others will see substantial increases in rates for the year.  Council has sought to mitigate rate increase by applying capping of between 8% and 10% for rural rate increases depending on rate category.  Unfortunately for a small number of rural ratepayers Council has not been able to contain increases they will be subject to a substantial increase.

Rates fell below 50% of Councils revenue this year due to the high level of external funding obtained by Council.  The largest component of this was Flood Restoration Funding from the October 2021 event totalling $40 million. There have also been increased allocations from Roads to Recovery (R2R) and the Transport Infrastructure Development Scheme (TIDS) and the Local Roads of Regional Significance Programme.

External funding total $51,013,932 for operational purposes and $5,190,604 for capital purposes.

Council did not receive the prepayment of the Federal Assistance Grant (FAG) this financial year. Given that the 2023-2024 FAG’s grant was largely prepaid in the financial year ended 30 June 2023 this has constrained the financial result and cash balances at 30 June 2024

Council’s proposed budget provides an operating surplus of $991,000 for the year ended 30 June 2025 and a net result after capital items of approximately $4,185,752.

This budget provides for a large capital works program with a total spend of $44 million approximately half of which will be funded by external sources. 

Key projects include:

• Biloela Water Park (completed 2025 Total Cost $2,900,000)            $ 1,572,750
• Biloela STP Concrete Refurbishment                                                $ 1,050,000
• Moura Theodore Road                                                                       $ 1,355,700
• Orange Creek Road                                                                           $ 1,498,133
• Stage B of Raedon Street Industrial Estate                                       $ 3,500,000
• Biloela Waste Quality Instrumentation                                               $    600,000
• Replace Main – Callide Street to Murchison Street (Biloela)             $    600,000
• Theodore Water Treatment Plant Electrical Upgrades                      $    400,000
• Cracow Road Upgrades                                                                     $ 3,076,717
• Crowsdale Camboon Road Upgrade                                                 $ 1,200,000
• Theodore Heavy Vehicle Bypass                                                       $    870,000
• Callide Street Footpath/Cycleway (Biloela)                                        $    770,000
• Drumburle Road Floodway (Thangool)                                              $    550,000
• Baileys Lane Widening (Biloela)                                                        $ 1,094,805
• Teys Road Floodway Immunity                                                          $    300,000
• Cooper Street Drainage (Biloela)                                                       $    510,000
• Nobbs Street Drainage (Moura)                                                         $    350,000
• Shepherdsons Road Upgrade (Biloela)                                             $    942,971
• Rural Road Reseals                                                                           $ 1,250,000

The budget continues Council’s strategy of strengthening its financial position while also continuing to invest in infrastructure needs to support ongoing business investment as well as lifestyle outcomes for our community.