The Special Rate Variation (SRV), an increase above the standard rate rise determined by the Independent Pricing and Regulatory Tribunal (IPART), will help secure the future of major upgrades to the Blacktown and Mount Druitt swim centres, the extension of the Mount Druitt Library and Community Hub, the new Seven Hills Library and Community Hub, and other facilities, a council spokesperson said.
While the NSW Government has funded construction, Council must cover the costs of the ongoing staffing, maintenance and operation of these services. Most of the SRV increase would ensure the future of these facilities, along with an expanded Mount Druitt PCYC, a new First Nations Cultural Hub, and a new, larger Leo Kelly Blacktown Arts Centre.
Much-needed maintenance and renewal to address a $108M backlog of existing infrastructure, such as roads, footpaths, and stormwater drainage, would also be provided by the SRV.
A small portion of the SRV, 37 cents per week for those that pay minimum residential rates, would also contribute to the delivery of a new public administration building located at Warrick Lane in Blacktown CBD. The new project will complement the planned Blacktown Quarter development by Walker Corporation.
A new administration centre at Rooty Hill is also proposed. This would deliver operational efficiencies and better coordination for teams providing essential works to infrastructure. It would also bring a significant boost to the economy of the Rooty Hill town centre.
The need for a SRV is a consequence of the prolonged impacts of cost shifting from governments and address a long-term rate setting model that has not kept pace with the costs of NSW’s largest and still growing Council.
Blacktown City Mayor Brad Bunting has encouraged residents to take part in the consultation program so they could give informed feedback.
“This is about funding the future of Blacktown City. If we don’t act, Council may not be able to resource and deliver the services, playgrounds, footpaths, well-maintained roads and more that we all expect,” he said. “I urge everyone to participate in consultation and find out for themselves the full picture of what the rates change will mean for Blacktown City.
For most of the community, those who pay minimum residential rates, the rates change would be an increase of $3.29 per week and apply from 2026/27. This would comprise the $1.10 weekly increase set by IPART and a proposed $2.19 special rate variation, bringing the total increase to $3.29 per week. For most smaller businesses (general), the rates increase would apply in 2026/27 (15%), and 2027/28 (8.5%) only.
These annual increases would remain permanently in the rates base, becoming part of annual rates going forward. Have Your Say feedback page on Council’s website.
The Blacktown News posed some questions to council regards the proposed rates rise.
How have cost-of-living pressures on businesses and residents impacted the Council's financial situation?
We know households and businesses are under real pressure. Council has worked hard to keep rates as low as possible for as long as possible. Council has delivered 20 consecutive balanced budgets and more than 1,900 cost-saving reforms that have helped reduce operating costs while protecting core services.
In the current environment, it has become harder to keep up with rising service delivery costs without placing additional pressure on ratepayers.
Construction materials, energy, waste disposal, insurance, and maintenance costs have all increased significantly for the community as they have for Council. Our ability to match our income to our costs is limited by state-imposed rate caps, which don’t keep pace with rising costs or population growth, capped developer contributions, and more than $20 million a year in cost shifting from other levels of government.
Council understands that some households may be experiencing financial hardship. Support is available through our rates hardship provisions, and we encourage anyone in difficulty to reach out and discuss the options.
Why and how has the backlog been growing over recent years and what measures were undertaken to address these issues?
Like most Councils in NSW, Blacktown City Council faces a growing infrastructure renewal backlog, currently estimated at $108M and projected to reach $706M by 2042– 43 if no action is taken
This backlog has grown due to several long-term pressures:
• A cap on how much councils are allowed to raise rates, known as rate pegging, in place since the 1978, limits Council’s ability to raise revenue in line with inflation, population growth and changing community expectations.
• As a growing city, Blacktown receives around $220 million worth of new assets each year from developers, but these come without the long-term funding needed for maintenance, renewal or operation.
• Cost shifting from state and federal governments, particularly in areas like libraries, emergency services, and waste levies, has added more than $20 million a year to Council’s responsibilities without matching funding support.
• Council has done what it can through savings and reforms, but the truth is the funding model no longer matches the reality of running a city like Blacktown. That’s why we’re talking to the community about a modest rate increase to keep services running and plan.
Is the Council considering other cost management measures besides rate increase to fund future city progress?
Yes. Council is implementing extensive cost management reforms. These include:
• Over 1,900 cost-saving initiatives identified through 20 structured service reviews.
• Council has cut day-to-day running costs by improving how services are delivered and renegotiating contracts.
• Improved procurement through contract renegotiations.
• Council puts savings aside to make sure important services can keep running into the future, even when income from things like fees or bookings changes from year to year.
• Long-term budgeting helps Council plan, but even the best planning can’t close the gap between rising costs and limited funding without additional income from the only thing we can directly change – rates.
These measures reflect a disciplined and responsible financial strategy. That is why a modest Special Rate Variation, $2.19 per week above the rate cap for most residents, is being proposed. Businesses and commercial premises ratepayers will also contribute their share, to help maintain essential services and renew ageing infrastructure in a growing city.
