Lake Macquarie City Council will hand down its operation plan and budget for the next financial year on Monday night, but the cost of repairing the fire-damaged administration building is yet to be incorporated.
The council is budgeting to spend $394.9 million over the next year, including $111.6 million on capital works.
It's a slight increase on the 2025-26 total spend of $389.7 million and $105.9 million on capital works.
Key projects include the completion of the $4.2 million West Wallsend Learn to Swim Pool. The pool's delivery has been shifted from 2025-26 due to minor delays. It's expected to be complete in September.
Other projects in the council's operation plan include the $11.35 million expansion of the Awaba Waste Management Facility to extend its service life into the 2040s, the permanent sand dredge for the Swansea Channel, and the replacement of the amenities block and boat ramp at Blacksmiths beach.
The council has also budgeted for sports field upgrades at Douglass Street in Dora Creek, drainage at Windale Junior Rugby League Club, and lighting improvements to Lyall Peacock Field at Toronto and the Cardiff netball courts.
New playgrounds will also be built at Marmong Point, Morisset, and New Lambton Heights.
Roads budgeted for improvements include Lake Road at Swansea, Deaves Road at Mandalong, Wyee Road guttering and the completion of a $10.5 million intersection upgrade at Wyee Road and Alliance Avenue in Morisset.
Lake Macquarie mayor Adam Shultz described the capital works program as "quite substantial".
The council is estimated to record a $58.41 million net operating surplus, on par with the previous year.
"It's not without its challenges," Cr Shultz said. "There are significant challenges given the cost of fuel and logistics in terms of this Iran conflict.
"It is having a significant impact on local councils right around Australia, and we're no different. So there are headwinds on the horizon, so to speak.
"If you have a look at our Office of Local Government benchmarks, we're still within comfortable ranges. We're trimming the sails where we need to and getting back to fundamentals as well so that we keep delivering for the people of Lake Macquarie."
Perhaps the most pressing headwind is the cost of restoring the council's Speers Point administration building that was damaged in an arson attack in November 2024.
The building has been returned to the council by its insurers. The roof has been removed and replaced, but the final damage bill is yet to be determined, including what percentage will be covered by insurance.
"I think that'll be a decision that council has to resolve," Cr Shultz said of the cost of restoring the building.
"It's going to be difficult. Council's going to have to make some tough decisions. The insurance will cover a lot of it, but it won't cover all of it."
