Now that proceedings have concluded, Council wishes to clarify the record on this matter in the interests of transparency.

Since 2002, the cost to ratepayers has been $7.15 million on public drainage works, settlements and legal costs, with an estimated $2 million to be spent on future public drainage works.

All costs to date have been disclosed in Council’s financial statements and annual reports.

Mayor Ryan Palmer says the Port Stephens community can be relieved there's finally an outcome.

"This Council has worked hard to resolve a complicated drainage issue and it’s disappointing that it has been going on for many, many years,” he said.

“The court has now determined how the drainage system should be expanded to prevent any flow of water into the Lagoons Estate. Council has budgeted for these works and is now in the process of engineering the solution.

"While I understand there has been community angst about this ongoing case, I can assure residents and ratepayers that the cost has been carefully managed to minimise the impact on Council's service delivery to the community.

“We have continued to deliver the high-quality facilities and services that our community has come to expect and managed these costs over almost 20 years within our existing budgets.

“As part of our Port Stephens 2020 projects, we’re also delivering our largest-ever program of major projects totalling almost $50 million while still maintaining a modest surplus."