The City of Newcastle's investment portfolio has bounced back after taking a hit last year when interest rates were low.
The council's interest and investments were valued at $14.7 million in June after dipping to $1.25 million in May 2022.
The June value was more than double the amount that had been budgeted at the start of the financial year ($5.1 million).
The Newcastle Herald reported in June 2022 Newcastle council's investments and interest were down 78 per cent on where they were predicted to be at that point of the year.
But since then the cash rate has risen 11 times, from 0.35 per cent in May 2022 to 4.10 per cent in June 2023.
"City of Newcastle's investment portfolio has enjoyed a very strong past 12 months," City of Newcastle CEO Jeremy Bath said.
"For the financial year just ended our return of $14.7 million was almost triple that we had forecast back in July.
"Rising interest rates assisted with our defensive investments such as term deposits, notes and bonds.
"However, the most significant increase occurred in the local and overseas stock markets, where our investments enjoyed an 11 per cent return.
"It's especially pleasing to see such a strong bounce back in the stock market given how volatile 2022 was, and where we didn't hit our target."
Mr Bath said returns from the investment portfolio were largely reinvested but were also used to fund unplanned expenses, such as increasing the infrastructure spend to stimulate the economy during the pandemic.
"While our financial statements will not be finalised until October, they will confirm City of Newcastle has delivered on its commitment to return the budget to surplus, while still delivering our largest ever capital works program on behalf of the city," he said.
