Councillors voted on Tuesday night to place on public exhibition a "contributions plan" for greenfield housing developments at Minmi and Fletcher which would raise the contributions from $13,646.75 to $30,274.30.

The council also voted to ask the Planning Minister to increase the existing $20,000 cap on contributions by $10,000. The cap would remain at $20,000 for in-fill development in the city's established residential areas.

The increase is designed to fund $92 million in new roadworks and infrastructure projects to support the western fringe's expanding population.

The plan would cover large housing estates proposed for former Coal and Allied and XStrata land destined to add an estimated 3132 houses and 8943 people to the area.

A report on the proposed contributions changes said another 2634 dwellings had been approved and were under construction in the western corridor.

These developments would add 50,000 vehicles per day to an already congested road network, and traffic on the Newcastle Link Road "corridor" would grow by nearly 22,000 vehicles a day by 2036.

The proposed $10,000 rise in the cap sparked a lively debate among councillors over the comparative affordability of Newcastle suburbs.

Independent Kath Elliott said it would unfairly "slug" young families who were "pushed to the edges" of the city.

"They struggle to build a house anywhere else because they can't afford it," she said.

"To put $30,000 on those areas but $20,000 on in-fill development seems a back-to-front policy lever."

Deputy lord mayor Declan Clausen (Labor) said a separate report tabled earlier in the meeting had shown that Fletcher, Maryland and Minmi had the lowest proportion of low incomes in Newcastle.

"The idea that people are pushed to the outer suburbs is inaccurate, based on the report we've just adopted," he said. "There is clearly a need for new infrastructure."

Lord mayor Nuatali Nelmes (Labor) said it was important for the council to collect enough money from greenfield sites in the western corridor to provide high-quality footpaths, community centres and playing fields.

The Greens' John Mackenzie said the city had to decide whether the cost of much-needed infrastructure in the west should be borne by people moving to that area or by all ratepayers in the city.

He said placing the plan on public exhibition gave people interested in moving into the new housing estates the chance to say whether the contributions would deliver good value for money.

Liberal councillor Brad Luke said the extra contributions would add unnecessarily to the "massive amounts of money" the council contributed to the cost of land.

Meanwhile, the council approved the Newcastle Knights' $18 million centre of excellence at District Park, Broadmeadow, after the club agreed to remove floodlights at the northern end of the complex.

The adjacent Westpac Rescue Helicopter Service won a court injunction last week blocking the council from voting on the development, but the parties resolved their differences during talks on Thursday and Friday.

N NEWS TODAY