The additional funding is needed as the PCYC is no longer part of the Port Macquarie Indoor Stadium expansion project.

The council agreed to amend the project budget and funding sources for this financial year and allocate just over $2.5 million in next financial year's draft operational plan to complete the project. The additional $3.25 million is made up of $998,407 from the Port Macquarie-Hastings section 94 open space contributions plan with the remainder sourced from the council's working capital reserve over the two financial years.

An audit of the 2014/2015 financial statements confirmed a $1.15 million cash surplus was achieved against budget, which has been placed in an internally restricted reserve.

This will be used as a funding source for the expansion project.

Additional funds were placed the working capital internally restricted reserve at year end to ensure the council has the ability to meet cash flow needs.

Just over $1.1 million will be sourced from this reserve over two years to fund the balance of the project.

The council report said these alternate funding sources did not take funds away from existing services and did not impact on any projects already committed for delivery by the council.

The federal government has committed $2.8 million to expand the stadium.

Cr Rob Turner congratulated the council staff on doing the work necessary to rejig the finances. He said the reallocation in order to ensure the council retained the federal government funding was highly prudent.

"It will be great to see the stadium [expansion] start to be constructed," he said.

Cr Trevor Sargeant said the council report presented a really pleasing result and he thought it justified the council's approach to the indoor stadium process.

"For the first time, it must be said we are very confident we will have an expanded indoor sports facility which will meet the needs of all user groups, rather than some user groups, and it will be controlled by this community through council in the foreseeable future," he said.

Cr Geoff Hawkins said spreading the funding over two financial years gave the council flexibility.

Cr Adam Roberts voted against the motion.