The money was earmarked for work along the shop-lined Sanger Street but it will now be part of an $830,000 kitty to reconstruct Federation Way south of Daysdale.

The area has been damaged by floods in recent times and the site of accidents.

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In approving the reallocation last week, councillors agreed there was a degree of urgency that necessitated the Federation Way works.

"The Daysdale bends is certainly something that has been ongoing and a problem for many, many years for council, so I think we've just got to get it fixed," deputy mayor Shaun Whitechurch said.

"The money will be put back into Sanger Street with grant sourcing the main thing.

"We have a lot of work to do with our rural roads, that's probably one of the biggest complaints I get."

Federation Council director engineering services Steve Carmichael said $5 million had been spent on the northern end of Federation Way which travels through Urana to Morundah and more was needed to enhance the southern portion.

"The problem you've got with your road network is it was built many many years ago and unfortunately in years gone by we haven't done the maintenance on it, with reseals and heavy patching and crack sealing," he said.

"It's got to the stage where anybody that's driven it, especially with the type of vehicles we've got on there now, the bitumen's just oxidised and starting to fall apart."

An overflowing Billabong Creek, big grain harvest, ageing roads and lack of council funding were all cited by Mr Carmichael as factors behind arterial routes suffering.

He said work done in Sanger Street since last year included new signage and sandblasting of light poles.

"The main thing we probably haven't done a lot of work on is the footpaths," Mr Carmichael said when asked at last week's meeting by councillor Aaron Nicholls what the $450,000 could have funded.

He said there were also plans for street trees work and the replacement of rubbish bins.

The vegetation project is set to be covered through funding from a local roads and community infrastructure program over the next 12 months.

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