Cr Burnett said fast solutions were needed to stop the council suffering the million dollar shortfall.

Under the current Section 94 system local councils estimate funds needed to build playgrounds, parks, local roads, drainage and guttering in new housing estates.

Cr Burnett said the dollar amount developers must contribute was capped by government policy.

The council's costing for community infrastructure has been validated twice by the Independent Pricing and Regulatory Tribunal.

Cr Burnett said Planning and Infrastructure Minister Brad Hazzard believed the IPART review of Section 94 levies did little to solve the issue.

"I would challenge the minister on that point," Cr Burnett said.

"The IPART review went a long way to clarifying the issue for the government.

"The council's community infrastructure plans are costed accurately and it is now up to the government to find a solution for the shortfall."

Cr Burnett said the council faced a possible crisis in providing new housing as "no-one wants to live in neighbourhoods that don't have parks, playgrounds, roads and drainage".

"This is bad news for the construction industry and can only mean bad news for housing affordability," he said.

Cr Burnett said all growth councils in Sydney were facing state government-imposed funding shortfalls.

"The council alone is staring down the barrel of an estimated $170 million shortfall of money required to deliver services for Sydney's new communities, if innovative solutions are not found quickly," he said.

"We don't want people living in substandard estates where increased housing densities are not being supported by adequate recreational areas and infrastructure to support quality living.

"Our communities deserve better than that."

Cr Burnett has called on Mr Hazzard to convene a summit of growth councils to address the crisis.

"What we want is a long-term solution to this problem critical for the future of Sydney as a city," he said.