Last week councillors agreed to place the next financial year's operating budget on public exhibition, which heavily relies on the independent regulator approving the rate increase.

Newcastle lord mayor Nuatali Nelmes said a significant amount of the next year's budget will be spent on the Summerhill waste management facility and the city's asset management.

The budget includes $68 million worth of capital works, most of which will be spent on the infrastructure backlog.

Cr Nelmes said not enough money had been spent on maintaining the city's assets.

Liberal councillor Lisa Tierney said it was a shame the next budget was drafted around a 46.9 rate rise for residents.