Newcastle's operating performance has significantly improved. We have generated operating surpluses for the past two financial years and have a year-to-date operating surplus of $7.2 million.

We have produced the eighth-largest operating surplus of all local governments in NSW. At the same time, we will deliver a bumper capital works program this financial year.

Our current position is stronger than projected in last year's Fit For the Future financial projections, when the NSW Government relied on data from the 2013-14 financial reports.

That financial strength is the result of a significant effort to reduce costs and improve non-rate-payer revenue sources.

We have delivered on our commitment to protect and improve services while also balancing our budget.  

Because of the changes we've made, Newcastle now has the lowest domestic waste management service charge among neighbouring councils.

Current reserves and an improved financial performance would allow the Council to address an infrastructure backlog by 2020, increasing maintenance for our community's assets.

Council is taking the necessary steps to build long-term financial sustainability. The NSW Government found Newcastle City Council to be financially fit for the future as it prepared for its local government reforms.

Our completed 2014-15 capital works program of $58 million will be followed by a $77 million spend this year.

Council's cash investments and reserves stand at $274 million, including $214 million worth of funds restricted for future commitments and provisions.

While Newcastle City Council's first preference is to remain a standalone council, if we are forced to merge our preferred partner would be Port Stephens. 

Visit newcastle.nsw.gov.au for more information about the proposed council amalgamations.