COUNCILLOR Ros Heit said council would betray South Burnett residents if $500,000 was spent on the Blackbutt Hall.
The hall is being moved to make way for a supermarket development.
The infrastructure surrounding the hall being moved includes footpaths, a sealed carpark, landscaping and water and sewerage works.
The council voted to allocate $250,000 in the 2017/18 financial year capital budget towards the cost of infrastructure.
Council applied for a grant from the state's Building Our Regions scheme and has been short listed.
If successful, the grant will pay for $250,000 of work.
If the application is not successful, the council will need to fund the full $500,000 or defer the work for a future budget.
Cr Heit said she thought the supermarket was a good development but she had an issue with the cost.
"Blackbutt residents were told there would be no or very minimal costs to rate payers to effect this hall relocations," Cr Heit said.
"$500,000 is a lot of money and I think we are betraying not only Blackbutt residents but all South Burnett residents if we spend this sort of money on unnecessary infrastructure."
Cr Heit said there were nearly 20 halls in the South Burnett and most of them did not have this sort of infrastructure.
She said if the council did not get the grant money she would argue $500,000 for such a low usage hall was gross negligence and a betrayal of the council's obligations of prudent financial management.
Mayor Keith Campbell said council had supported resolutions in the past for this project to occur.
Cr Campbell said the money was coming from internal revenue and would not impact on rates or cost ratepayers.
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