Wollongong City Council's draft management plan released yesterday reveals it will splash out $70 million on capital works over the next year, much of it to redress decades of underspending on infrastructure and to spruce up the city's assets.

To help fund the work, average rates will rise by $26 to $1068 - in line with the State Government's rate pegging limit.

Ratepayers will also pay an extra $51 a year on average for domestic waste, to cover rapidly rising landfill costs.

The increase brings the annual cost of a household's 120-litre waste bin to $340.

Renewal of the city's deteriorating footpaths, roads, civic buildings and playgrounds will be the new focus, as city officials scramble to preserve the city's major assets.

Many were constructed in the post-World War II building boom and are crying out for upgrade and replacement.

Even the city's 730km of stormwater drains will receive a makeover.

The council's general manager David Farmer said the plan would allow for rejuvenation of the city's most crucial assets.

"It's a continuation of what we've been doing the last few years, of reducing costs and reinvesting in infrastructure, the things people use every day," he said.

The plan shows that while the council's budget is in surplus, the depreciation of its $3 billion worth of ageing assets has created a $22.5 million funding shortfall.

The capital works will extend to key projects including work on Crown St Mall and the Blue Mile, the Wollongong Town Hall refurbishment and the relocation of Warrawong Library.