The proposal, released on Wednesday evening, is designed to show the council how cycleways could operate alongside the planned light rail.

The centrepiece is a proposed two-way separated bike lane that would begin at the Newcastle Interchange, running alongside traffic roughly halfway down Hunter Street, before picking up again on King Street.

The state government sees it as a starting point for a larger network, with other cycle routes to sprout from Hunter and King streets to the outer suburbs.

The proposal contains a number of “end of trip facilities”, including secure bike storage with showers and lockers, which would benefit those riding to and from work.

But – critically – the report said funding and building cycle infrastructure “is ultimately a local government responsibility”.

That angered the Newcastle Cycleways Movement, who said local council’s “simply don’t have the scale or budget” to deliver expansive cycle networks.

“Cycling infrastructure should absolutely be the responsibility of state governments because they are the entity that benefits the most from an active community,” president Peter Lee said on Wednesday night, referring to preventative health outcomes.

Mr Lee also said the proposed CBD cycle route was “flawed” as the Hunter Street bike lane is proposed to stop a block short from the front door of the University of Newcastle’s new city campus.

“That doesn’t make sense to me,” he said.

Newcastle Lord Mayor Nuatali Nelmes said the council would further investigate the proposal, flagging an early problem with cars, light rail and bikes all using the same road.

“Council will need to consider potential conflicts with the congestion of modes along Hunter Street,” she said, adding that King and Parry streets also had potential for a separated cycleway.

Revitalising Newcastle’s Michael Cassel believed the proposal struck the right balance between the variety of bike uses in the CBD. He said it was a “significant improvement” on existing facilities.

“Improved public transport is vital to the ongoing vibrancy of the city, and it should be complemented by active transport networks that would give Novocastrians more travel choices than ever before,” Mr Cassel said.

The council said it would invest $6.7 million in cycleways over the next two years. The Newcastle Cycleways Movement has costed its CycleSafe Network Proposal, an expansive bike network covering Newcastle and Lake Macquarie, at $100 million.

The state government does provide funding to local councils for cycleways through grant programs.

However, Mr Lee said: “It’s just loose change.”