LORD mayor Nuatali Nelmes has conceded defeat to Independent candidate Ross Kerridge in what has been an almost unprecedented neck-and-neck race in Newcastle.
In a public statement, Cr Nelmes said "it is now evident" that she will likely fall just a few hundred votes short of re-election.
"I congratulate Dr Kerridge on his likely election as Newcastle's 15th lord mayor, and offer him my best wishes," she said.
"Though I am naturally disappointed in the outcome, I am incredibly proud of the progress we've made over my time as Newcastle's second-longest serving lord mayor.
"Over the last decade, I've had the honour of leading a dedicated team that has worked tirelessly to build a more sustainable, inclusive and thriving city."
Dr Kerridge held 35.19 per cent of first preference votes and Cr Nelmes held 31.87 per cent on Tuesday.
Cr Nelmes pointed out that the council had invested more than $1 billion in local public infrastructure, "protected local jobs and services", and had become the first council to use 100 per cent renewables, "all while tackling the impacts of a pandemic".
"Upgrades to public infrastructure are evident across our city," she said.
"I am particularly proud of delivering the iconic Bathers Way, upgrading the Newcastle Ocean Baths, and building 35 new playgrounds across our city," she said.
"We've worked tirelessly to address the Stockton erosion crisis, invest in new social and affordable housing, and expand Newcastle's cultural offerings through the Newcastle Art Gallery and the New Annual festival."
Dr Kerridge thanked Cr Nelmes for her concession and congratulated her on her achievement as lord mayor for the last decade.
"Obviously we have important differences in our ideas of lord mayorship but I know that we're both very committed to Newcastle and I've always respected anyone who is prepared to be the person in the arena, rather than sit on the sidelines and be a critic," he said.
"I hope that Nuatali will find a way to contribute to public life using her great skills and knowledge into the future."
Dr Kerridge paid tribute to the "amazing team" that gathered around him in his campaign.
He said it was "truly extraordinary" to consider the amount of people who had given up their time and put in such an "enormous effort", some of whom he had never met before but who went "above and beyond".
"I would particularly like to pay tribute to my amazing campaign manager John Beach, and of course my extraordinary wife Marion who has been the bedrock of everything I have achieved professionally, including transforming herself into an absolutely extraordinarily effective political companion," he said.
"I look forward to serving the city in the capacity of lord mayor and promise that I'll do my best to listen and to effectively serve all the people of Newcastle into the future."
Cr Nelmes said the council had laid the foundation for future industries, such as the diversification of the Port of Newcastle, expansion of the John Hunter Hospital and University of Newcastle, and provided support for new industries like green hydrogen and offshore wind which she said will ensure that Newcastle continues to thrive as our state's second largest city, and capital of the nation's largest regional economy.
"I am proud to have secured hundreds of millions of dollars in Commonwealth funding to expand Newcastle Airport, upgrade the runway and develop surrounding industries that will enable tourism, manufacturing and export industries to prosper and expand," she said.
Cr Nelmes said the Broadmeadow precinct and fast rail would likely be the next big game-changers for the city.
"While I will not be returning as lord mayor, I am delighted to report that five of our six Labor ward councillors are likely to be re-elected, forming the largest group in the new council chamber," she said.
"Their experience and dedication will ensure continuity as they continue to build on the work we've delivered."
Cr Nelmes said that when she first joined the council in 2008, only two women served in the chamber of 13 councillors.
"Since then we made historic strides, increasing female representation to nine councillors," she said.
"I am pleased to see that this legacy of diversity will continue, with women making up 80 per cent of Labor councillors, 66 per cent of Greens councillors, and 50 per cent of Liberal councillors in the new council term."
Dr Kerridge said on Tuesday, before Cr Nelmes conceded, that he hoped he and Cr Nelmes could develop a "respectful and constructive" relationship whichever way the votes flowed.
"She has had a lot of experience, obviously our ideas differ, she has a lot to teach me and I would be prepared to listen," he said.
"I would hope whatever role I am in there will be a different tone to the council meetings."
Cr Nelmes said she "makes no apologies" for being bold and ambitious for Newcastle and the Hunter and "fighting for our fair share".
"I make no apologies for being bold and ambitious for Newcastle and the Hunter region and always fighting for our fair share. I will always be on team Newy," she said.
"My love for Newcastle, from Lambton to Wallsend, Blackbutt to Bathers Way, and Stockton to Minmi, is why I worked so hard to create a more sustainable, inclusive, and resilient place for us all to live."
Cr Nelmes said she hopes the city's next leaders will continue to move forward and build on positive momentum the council has created.
"I look forward to watching Newcastle grow and thrive from a new perspective, and to supporting its progress in other ways," she said.
Cr Nelmes said for now she will be spending more time with her family and friends.
"During my last decade of public service, there have been many moments that have taken a back seat because of the demands of leadership," she said.
"Thank you to everyone who has supported me throughout this journey; my councillor colleagues, my friends and family, members of the Australian Labor Party and broader Labor movement, and the dedicated staff of the City of Newcastle.
"I know the important responsibility that comes with being the lord mayor of our fantastic community.
"It has been the privilege of a lifetime to serve our city as lord mayor."
On Tuesday, NSW Electoral Commission executive director of elections Andrea Summerell said postal votes could be the deciding factor in the Newcastle lord mayoral race as the result may come down to the wire.
An anxious almost 10-day wait was expected to lie ahead for candidates Dr Kerridge and Cr Nelmes with the distribution of preferences unable to occur until at least September 30 when postal votes were returned.
Hawk-eyed scrutineers, 12 from Cr Nelmes' camp and one from Dr Kerridge's, were going through each ballot paper with a fine-toothed comb.
From the time the result is declared, candidates have 24 hours to call for a recount, but Ms Summerell said that is "not common at all".
"We don't do recounts just because a person would want us to recount," she said.
"They would have to point to some kind of anomaly that's happened during the count, and closeness is not necessarily a reason for a recount," she said.
