SOMERSET Regional Council’s estimated capital budget for the 2024/25 financial year has increased by about $22 million, largely due to new grant funding.

Council adopted the revised budget on 30 October.

Somerset Mayor Jason Wendt said funding to finalise Disaster Recovery Funding Arrangements had also been confirmed and budgeted for as part of the first revised budget for the financial year.

“The total repair works for the 2022 Flood Recovery Program is expected to be about $66 million with assistance provided through the jointly-funded Commonwealth-State Disaster Recovery Funding Arrangements (DRFA),” Cr Wendt said.

“Council has worked hard to plan and complete a flood restoration program that is around twice our annual rate revenue, so this has been huge for us and hopefully will leave us even more resilient for the next flood.

“Council will receive an additional $13 million in new capital grants including successful funding for the Toogoolawah Pool upgrade and Kilcoy Indoor Sports Centre Upgrades totalling $5.5 million.

“While this news is positive, we know we’re operating in a challenging construction market with fluctuating prices and we are mindful of the risks and long term budget impacts of major construction work.

“We continue to see the price of materials, services and other expenses increasing.”

Cr Wendt said, as a result, Council is also factoring in a $1 million (increase) in depreciation which will affect our State Government sustainability ratios.

“Council will continue to focus on meeting the State Government sustainability ratios to ensure Council is well-positioned to deliver products and services for the community,” Cr Wendt said.