At least an extra $21million is needed before long-term sand renourishment on Stockton Beach can occur.
The yawning funding shortfall is the latest battleground between the City of Newcastle and the State Government over where responsibility for the beach's ongoing restoration lies.
The council has to date committed $27.5 million to respond to the immediate risks to Stockton's coastline in its 2020 Coastal Management Program with $9.5 million already invested.
The State Government has provided $1.5 million for emergency sandbagging and beach nourishment. Another $1million was provided to undertake exploration for offshore sand sources.
But it is a drop in the ocean for what is compared to the $21million that the 2019 Coastal Management Plan estimated would be needed for mass sand renourishment.
The method remains the preferred the long-term option for beach despite a suggestion from Deputy Premier Paul Toole on Monday that there may be enough sand in the harbour and north arm of the Hunter River to renourish the beach with.
"Let's be honest about inflation and the cost of delivering any service, particularly infrastructure, has gone up so it will be more than $21million," Newcastle Lord Mayor Nuatali Nelmes said.
An additional $500,000 will also be needed each decade for top-up works.
"There has to be funding in perpetuity to ensure that any sand lost after we get the mass sand nourishment is also replenished. We need a funding mechanism in place," Cr Nelmes said.
Labor and the Coalition have ruled out imposing a breakwall levy that would be used to fund the ongoing beach renourishment.
However, the Greens, which are hoping to hold the balance of power following the March state election, believe a levy should be introduced.
City of Newcastle has also resolved to support a levy.
"We all agree that the breakwall serves a very important process, but the net loss is the impact on the beach and the community at Stockton," Cr Nelmes said.
The costs associated with a recently announced federally funded short-term project to use sand from Newcastle Harbour to renourish Stockton Beach have also been questioned.
The Federal Government approved $4.7million in funding for the City of Newcastle, part of which will be used to fund investigations into potential harbour sand sources and amenity beach renourishment works.
Deputy Premier Paul Toole announced on Monday that NSW Public Works would take over the project from the Hunter Central Coast Development Corporation. While the development was generally welcomed, the estimates of the project's management costs vary widely.
The Department of Planning and Environment initially estimated the costs would be about $250,000 in its funding application, whereas the Hunter Central Coast Development Corporation put the costs at close to $2.5million.
Mr Toole said Public Works would work with the Commonwealth and the council to understand the costs and minimise them.
"At the end of the day we want to solution that is going to be delivered to be the right one. I don't want to see the money gobbled up by bureaucrats," he said.
In another development, a briefing note update showing the partnerships and strategies for the beach renourishment program shows there is still a lack of clarity around which State Government agency will undertake key actions within the plan.
"It is appropriate that the NSW Government be tangibly involved in a solution for Stockton Beach as it is their infrastructure that has been proven as the primary cause of ongoing erosion at Stockton Beach, which it also owns," Cr Nelmes said.
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