The City of Sydney has unveiled a 2026/27 budget exceeding $1 billion, combining a $671 million operational programme with more than $265 million in capital works to advance a programme of city-shaping investment that includes the long-anticipated $150 million Town Hall square, a $78 million Mandible Street sports precinct and the renewal of major parks, pools and public streets across Sydney, New South Wales.

The budget forms part of the council’s 10-year financial plan, which forecasts total expenditure of $2.3 billion over the decade to meet the needs of a municipality of 242,000 residents. Of the capital works allocation, $170 million is directed at asset renewal across roads, open spaces, recreational facilities and heritage infrastructure.

Flagship urban projects confirmed within the five-year programme include the $150 million Town Hall square, with construction expected to commence in 2028. Framed by George, Pitt and Park streets, the square has been in planning for more than 40 years and forms one element of a broader CBD transformation strategy linking three new civic spaces — at Circular Quay, Town Hall and Central Station — via the pedestrianised George Street corridor. The 2026/27 budget separately allocates $18 million to complete pedestrianisation works along George Street between Hunter and Essex streets, building on the thoroughfare’s existing transformation from traffic corridor to public boulevard.

“With careful planning and prudent investment over a number of years, we’ve built a strong financial position for our city. Now we want to invest those funds to strengthen Sydney’s international reputation as a leading global city — renowned for its lifestyle, economy, tourism, sustainability, open space and cultural life,” says Lord Mayor Clover Moore AO.

Further programme commitments include the $78 million Mandible Street sports precinct, the $21.8 million upgrade of Sydney Square, commencement of the $46.8 million renewal of Wentworth Park following State Government handover, and an $18.9 million comprehensive renewal of Belmore Park. A $15 million upgrade of Victoria Park Pool and matching $15 million major renewal of Cook and Philip Park Pool are also scheduled to begin, alongside the $15 million upgrade of Alexandria Park.

Parks and open space

The 2026/27 allocation directs $54 million to parks, greening, tree maintenance and leisure services. Specific projects include a $4.2 million upgrade of Ward Park in Surry Hills — designed to improve accessibility and inclusivity — $3.9 million for improved lighting across Hyde Park, and $3.8 million for the renewal of Green Park, one of the largest open spaces in the Oxford Street precinct. The council’s $90 million commitment to resource recovery and public cleansing services underpins the operational side of its public space management programme.

Active transport

Cycling infrastructure investment continues with $3.5 million committed to a new cycleway along Ultimo Road, Darling Drive and Campbell Street, and $2.6 million to develop a safe, direct bike network connecting Surry Hills with Central Station. A further $3.4 million will complete the Primrose Avenue Quietway.

Community grants and cultural investment

More than $23 million in cash grants will support social and community organisations across food support, homelessness services, affordable housing, artist programmes and business support. A further $11.8 million in value-in-kind support covers accommodation grants, rental subsidies, banner hire and venue hire allocations. Major event funding of more than $13 million covers Sydney New Year’s Eve, Sydney Christmas and Sydney Lunar Festival, while grants also continue for the Sydney Writers’ Festival and Sydney Gay and Lesbian Mardi Gras.

Asset upgrades and streetscape renewal

Among asset investment priorities, $15.5 million has been committed to the stabilisation and restoration of the Sydney Park brick kilns, while $6.8 million will complete and open the new Huntley Street Recreation Centre. Street-level improvements include a $4.7 million upgrade of Victoria Street between Craigend and Burton streets in Darlinghurst, and a $4.4 million revitalisation of Dixon Street in Haymarket incorporating new paving, decorative lighting and street furniture.

“This budget and our long-term plan are about delivering real, lasting benefits for current and future generations,” says Moore. “It underlines our commitment to delivering value for the community, ensuring we can meet future demand while maintaining our existing assets and services to a high standard.”

The 2026/27 draft budget is open for public comment until 15 June 2026, after which it will be considered by council for final adoption. Details and submission options are available at sydneyyoursay.com.au.

Main image: Sydney CBD street scene, people crossing the road surrounded by high-rise buildings. Credit: Benjamin Sow / Unsplash

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