City of Newcastle delivers $137.4 million capital works program and fourth surplus

Newy 87.8 FM – 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 major city-shaping projects, with the completion of the expanded Newcastle Art Gallery among the highlights.

CEO Jeremy Bath said almost 30 per cent of the works program budget went into road resurfacing and rehabilitation projects, including the dual-lane upgrade at Longworth Avenue and Minmi Road, Wallsend, which will be finished before Christmas.

Mr Bath said $4.5 million was spent to continue upgrading stormwater infrastructure to improve Newcastle's resilience to floods.

The draft statements also reveal the Council delivered its fourth consecutive surplus, with an underlying operating surplus of $1 million and a total surplus of $18 million when including one-off events.

Acting Chief Financial Officer Scott Moore said the result was driven by a trio of one-off events, including the Federal Government's decision to pay 80 per cent of the 2026/27 Financial Assistance Grant to all 128 NSW councils in the prior financial year, which added $5.7 million to the bottom line.

Mr Moore said better than forecast investment returns and a stronger than forecast consolidation of the performance of Newcastle Airport also contributed. He noted a similar total surplus was reported by Lake Macquarie City Council, where external factors contributed to the surplus position.

The draft audited financial statements will be tabled at next week's Council meeting to be authorised for signing.

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