FEARS that funds for vital projects across Lake Macquarie could be sucked out of the region were raised at last week's council meeting.
Lake Macquarie City councillors voted in favour of writing a submission to the state government about its Newcastle strategy.
The council is alarmed that the removal of the heavy rail line out of Newcastle would have a negative impact on Lake Macquarie.
The submission will argue that "no action is undertaken on the railway line until a comprehensive and resourced public transport plan is in place for the Lower Hunter".
A council report presented to councillors states that the NSW government has allocated $120 million towards Newcastle's city centre revitalisation, including a $10 million upgrade to Hunter Street Mall and Wheeler Place.
The state government will also seek a further $100 million from the federal government for the city centre revitalisation.
Lake Macquarie mayor Jodie Harrison said improvements to Newcastle should not be at the expense of the rest of the Hunter region.
She said removal of the line would have negative effects on the community and the environment.
Cr Laurie Coghlan said regional projects, such as the Glendale interchange, could be put on the backburner.
Cr Jason Pauling said the heavy rail in its current form was not the right future vision for Newcastle and needed to be removed.