The 2013-2017 Delivery Program outlined a plan to move us towards financial sustainability and we have made good progress.

Over a two-year period, we reduced our overall expenditure by 10 per cent, or $12 million.

We did this by looking at our organisational structure and staffing to ensure we were operating efficiently as well as identifying services and facilities that were either no longer required, were duplicates of services provided by other agencies, or could be provided more efficiently by external service providers.

This has been a difficult process, but ultimately the organisation is in a much-improved position.

We are still reliant on our cash reserves to fund day-to-day operations and this is not sustainable.

This month we will engage with the community about how we can continue our road to recovery.

We propose to apply to the Independent Pricing and Regulatory Tribunal for a multi-year, special-rate variation to increase our rates income above the rate peg.

The application is for a five-year period, starting in 2015-16.

There are three options being considered. This week all households should have received information about the options as well as ways to find out more and provide feedback.

Community drop-in sessions start this week at New Lambton Library on Thursday, October 9, from 4.30pm to 7.30pm, and Adamstown Library on Saturday, October 11, from 9.30am to noon.

For more information visit newcastle.nsw.gov.au.