newy.com.au – City of Newcastle delivered a $137.4 million capital works program in 2025/26, including major road upgrades, stormwater improvements and the completion of the Newcastle Art Gallery expansion, according to its latest financial report.
The council reported its fourth consecutive surplus, with an underlying operating surplus of just over $1 million rising to a total surplus of $18 million when three factors it described as one-off were included.
The results are outlined in draft audited financial statements, which will go before next week’s council meeting for authorisation to sign.
Acting Chief Financial Officer Scott Moore said the larger surplus reflected an early federal grant payment, better-than-forecast investment returns and a stronger-than-expected result from the consolidation of Newcastle Airport’s financial performance.
He said the Federal Government’s decision to pay 80 per cent of the 2026/27 Financial Assistance Grant to NSW councils in the preceding financial year added $5.7 million to Newcastle’s result.
“Without these items the underlying result is a surplus of just over $1 million, which is more in line with our original forecasts and would have still given us the financial capacity to maintain services and meet the commitments we’d made to the community,” Mr Moore said.
The capital works program included $30.1 million for road rehabilitation and major upgrades at Longworth Avenue and Minmi Road, Wallsend.
CEO Jeremy Bath said the Wallsend works were expected to be finished before Christmas, as the council balanced demand for new infrastructure with the maintenance of existing assets.
Mr Bath said improving Newcastle’s resilience to floods was another important focus. “We spent $4.5 million to continue upgrading our stormwater infrastructure,”.
The completion of the Newcastle Art Gallery expansion was among the year’s major project milestones.
Recreation and sport projects received $17.7 million, including work on the Foreshore Park Playspace, which the council describes as Newcastle’s first regional-level inclusive playground.
Another $12.2 million went towards revitalisation projects, including Hunter Street in the East End and local centre upgrades at Georgetown and New Lambton.
Commercial property projects accounted for $8.2 million. These included the Newcastle Art Gallery café, Lambton Park café, Foreshore Park kiosk, Shepherds Hill Cottage and the transformation of the Queens Wharf precinct.
The council also spent $8.7 million on environment and sustainability projects and $7.3 million on waste services.
Transport projects received $6.7 million, including $3.8 million for dedicated cycleway infrastructure.
Mr Bath said upgrades to footpaths, cycleways, sporting facilities and local centres were providing everyday benefits for residents, while the Queens Wharf precinct and Foreshore Park projects would create longer-term opportunities for the city.
Mr Moore said the financial statements showed the council had exceeded every financial key performance benchmark set by the Office of Local Government.
