We have listened and since I have been mayor, have worked hard to achieve these aims.

It is an inescapable fact that renewal of our assets, such as roads and buildings is incredibly expensive and growing more so each year. Quite frankly a rate rise of 2.6%, which the NSW government has imposed upon all councils, does not go anywhere near covering these costs.

Rather than sit on our hands however, the council is taking affirmative action.

Already you will have seen our commitment through the millions we have spent on our roads and drains in the last 12 months. Last year, Council borrowed $4 million to tackle this infrastructure.

But we know we need to do more.

Firstly we need to reduce spending where we can. We have already made dramatic savings in legal costs and energy consumption and are trawling through our entire budget looking to cut costs further.

Secondly, we need to increase the profitability of our commercial activities. A good example is our property portfolio which is achieving good financial returns.

Thirdly, we will be asking the other tiers of government to share in our burden by seeking increases in our revenue from state and federal funding grants.

And lastly we are asking the community to consider an increase in our rate revenue (of 6.26 per cent above the rate peg.)

This is the toughest decision of all, but importantly we believe it is the right one for the long term future of Port Stephens. I want to guarantee residents that 100 per cent of this money will be spent on things that matter - the maintenance and renewal of our roads, drains, buildings and facilities.

If we don't act now, the backlog of infrastructure maintenance will balloon and the costs will continue to grow over time.