The rates increase forms part of Cessnock City Council's draft management plan and budget, which shows the council has maintained existing funding levels for most of its services.

Its budget includes expected expenditure of more than $12 million on roads and bridges, $2.4 million on recreational services such as parks and sportsgrounds, $1.3 million on swimming pools and an aquatic centre, $8 million on waste management and $1.2 million on library services.

General manager Bernie Mortomore said the council delivered a balanced budget despite the affects of the global financial crisis.

"Before the budget deliberations, council needed to address three significant impacts on our 2009-10 budget," he said.

"The first was an increase in superannuation contributions amounting to about $900,000 each year for the next 10 years. Each council in NSW has been hit with higher contributions to the Local Government Superannuation Scheme.

"The two remaining impacts are a result of the global economic crisis.

"There was a reduction of $510,000 in income from investments and also a reduction of $250,000 in development activities such as DA [development application] fees."

"These three issues were on top of the normal and expected increases in areas such as insurance, employee costs, energy and construction/maintenance costs," Mr Mortomore said.

Of the expected $33.2 million the council expects to raise through rates and charges, general rates will contribute $26.4 million, waste management charges $6.1 million, stormwater management charges $450,000 and onsite sewage management charges $218,000.