SOUTHERN Downs Regional Council continues to field public comment on the 2017/18 draft budget but warns work toward financial stability is a long way from being over.

The draft budget has forecast a moderate operating surplus of $399,000 - more than double the $159,000 surplus anticipated in the 2016/17 draft budget.

A further reduction of council debt between $1.9 and $2million is also expected by the end of the next financial year.

Council officers said though the finances were on the right track, the work was not over yet.

In a report delivered in State Parliament last month the Queensland Audit Office reported the operating surplus delivered by the council had improved the council's overall financial position.

SDRC CEO David Keenan said while it was a welcome result, the council was not yet in the clear.

The council is classed by the QAO as being at moderate risk, and is thus still in danger of a long-term reduction in cash reserves and inability to fund asset renewals.

"After delivering this surplus, we're into the amber by just 1%, and that amount of money could be taken out by one storm," Mr Keenan said.

"Now that we've moved into the amber, we're working toward becoming viable and integral to that is the delivery of surplus after surplus."

"It will take at least another three years of delivering operating surpluses to possibly get over the line and move of the Queensland Treasury Corporation watch list," Mr Keenan said.

"Without improving our finances over a period of time we will never be able to borrow for projects like the Allora sewer."

Mr Keenan said the council was taking heed of advice from QTC and SDRC's own Audit and Risk Management Committee to ensure surplus budgets continued.

Mayor Tracy Dobie said the council had managed to make greater savings through operational measures, however that would only go so far.

"We have made a lot of savings through squeezing the sponge, as once again much of those savings have come out of cutting operational costs within council," Cr Dobie said.

"We may not be able to get too many more years out of this.

"We have also been able to use money generated through council-owned land sales to pay down our debt.

"The land we have on the books now is not as attractive to sell and we may not be able to pay down such large sums in future."

Mr Keenan further highlighted the Southern Downs had "uneven economic growth" and it was a goal of the council to identify existing growth areas and which areas needed greater attention.

Cr Dobie said councillors and staff would continue to apply for funding from state and federal grants to complete infrastructure projects.

Mr Keenan said while these avenues were useful, there was a greater expectation from the government to complete the projects within tighter timeframes.

"There is not the opportunity for council to have funding and be able to sit on it for a long time as there has been in the past," he said. "As we have seen with Building Our Regions, built into the criteria is the expectation for projects to be completed by a certain date."

The draft 2017/18 budget is available for public feedback until 5pm May 10.

Councillors and staff will host public sessions to review the draft budget in Stanthorpe this evening, and in Killarney, Allora and Wallangarra in the next month.

For more information about these sessions and to provide feedback on the draft budget, go to sdrc.qld.gov.au