City of Newcastle delivered a $137.4 million capital works program in 2025/26, investing almost $40 million in road and stormwater upgrades.
Draft audited financial statements for 2025/26 outline a focus on asset renewal alongside the delivery of major city-shaping projects, with the completion of the expanded Newcastle Art Gallery among the highlights.
CEO Jeremy Bath said City of Newcastle continued to balance the demand for new infrastructure with the need to maintain its assets.
“Roads are a major priority for our community, which is why we invested almost 30 per cent of our works program budget into road resurfacing and rehabilitation projects, including the dual-lane upgrade at Longworth Avenue and Minmi Road, Wallsend that will be finished before Christmas,” Mr Bath said.
“Improving Newcastle’s resilience to floods is another important focus, with $4.5 million spent to continue upgrading our stormwater infrastructure.
“Upgrades to footpaths, cycleways, sporting facilities and local centres are providing more everyday benefits to our residents, while major projects such as the revitalisation of the Queens Wharf Precinct and the city’s first regional level inclusive playground at Foreshore Park will deliver significant opportunities for our city into the future.”
Highlights of the 2025/26 capital works program include:
- $30.1 million on road rehabilitation and the delivery of major road upgrade projects at Longworth Avenue and Minmi Road, Wallsend
- Completion of the expansion of the Newcastle Art Gallery
- $17.7 million on recreation and sport projects, including the Foreshore Park Playspace
- $8.2 million invested in commercial property projects such as the Newcastle Art Gallery café, Lambton Park café, Foreshore Park kiosk, Shepherds Hill Cottage and the transformation of the Queens Wharf precinct
- $12.2 million on revitalisation projects including in East End Hunter Street and Local Centre upgrades at Georgetown and New Lambton
- $8.7 million on environment and sustainability projects
- $6.7 million on transport, including $3.8 million invested in dedicated cycleway infrastructure through the cycleway program
- $7.3 million on waste services.
The draft financial statements also reveal City of Newcastle has delivered its fourth consecutive surplus, with an underlying operating surplus of $1 million and a total surplus when including one-off events of $18 million.
Acting Chief Financial Officer Scott Moore said the result was driven by a trio of one-off events.
“We’ve seen a similar total surplus reported by Lake Macquarie City Council, where external factors have contributed to the surplus position,” Mr Moore said.
“This includes the decision of the Federal Government to pay 80% of the 2026/27 Financial Assistance Grant to all 128 NSW Councils in the prior financial year, which added $5.7 million to our bottom line.
“We also experienced better than forecast investment returns and a stronger than forecast consolidation of the performance of the Newcastle Airport.
“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.
“Most importantly, our financial statements for 2025/26 have exceeded every financial key performance benchmark set by the Office of Local Government, once again demonstrating the city’s fiscal responsibility and effective management.”
The draft audited financial statements will be tabled at next week’s Council meeting to be authorised for signing.
