City of Rockingham council reduces rate rise to 3.5% but cost-of-living support carries $460k shortfall
The council opted to go against a proposal to lift rates by 3.9 per cent next financial year in favour of a 'more modest' increase of 3.5 per cent.
The higher figure would have enabled the city to lock away a war chest for planned upgrades at Aqua Jetty and Mike Barnett Sports Complex, but opting for the lower figure has left a $460,000 hole in the council's annual budget and uncertainty about where the cost shortfalls for those projects will come from.
Cr Kelly Middlecoat led the charge at last week's meeting to limit the rates increase to 3.5 per cent, arguing that ratepayers were already paying an extra $33 due to the FOGO waste levy.
'Having a look at the broader economic picture, the CPI for the 12 months ended 31 March 2025 was 2.4 per cent and the WA local government cost index is forecast to be 2.7 per cent this year,' she said.
'This shows our proposed increase is outpacing the general cost of living and even specific costs faced by local government.
'A rate increase of 3.9 per cent was intended to generate some additional revenue over and above what was required in order to address the funding shortfalls for the Aqua Jetty and Mike Barnett projects.
'The precise budget for these projects remains unquantified, with neither project being shovel-ready next financial year.'
Council members voted unanimously for Cr Middlecoat's alternative motion.
In a later statement, Rockingham mayor Deb Hamblin said the council's annual budget aimed to strike a balance between addressing community needs while acknowledging cost-of-living pressures.
'Council listened to community concerns about the current economic circumstances facing many households and has kept the rate increase to a minimum,' Ms Hamblin said.
'The increase is 3.5 per cent which equates to approximately $1.06 per week for the average residence, and is lower than advertised to support our ratepayers with cost-of-living pressures.
'In addition, council has supported not charging interest on rates-smoothing payments for the 2025-2026 financial year to provide further assistance with cost-of-living pressures. This option will greatly assist ratepayers choosing this option to pay their rates without any extra costs.'
Ms Hamblin said the budget was prepared with an eye on the future while continuing to meet the community's aspirations defined in the 2023-2033 Strategic Community Plan.
It includes money to complete the Stan Twight clubroom redevelopment, the final stage of the Baldivis Sporting Complex including outdoor courts, Southern Pavilion and outdoor recreation space, the Anniversary Park clubroom redevelopment and the relocation of Lotteries House.
'As a rapidly growing outer metropolitan local government area with a current population of more than 150,000 people, keeping pace with the growing needs of the community and maintaining existing assets and services remain ongoing challenges,' she said.
'In addition, with 37 kilometres of coastline, climate change is a major challenge for us. That's why 0.5 per cent of rates will be allocated to a coastal hazard risk management and adaptation plan reserve account to help fund future climate change mitigation works.'
Ratepayers who want to take advantage of the interest-free arrangement need to have an existing arrangement or sign up using the application form that will arrive with the rates notice.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
7 hours ago
- Perth Now
Major bank calls out RBA over rate cut
One of Australia's big four banks has challenged the Reserve Bank on its looming cash rate decision, revealing a big issue governor Michele Bullock will face if the board decides not to cut. Ahead of next week's monetary policy board meeting, Westpac chief economist and former RBA employee Luci Ellis has called out the central bank, questioning: 'What do they expect to learn in the next five weeks? (if they don't cut)' 'Could you front a media conference and explain why you decided to wait another five weeks to cut rates, when it was just a choice between now and August? … the answer is likely to be 'no', she said. 'The arguments to wait are not compelling, so we do not think that case should win the day.' The RBA is tipped to cut rates in July thanks to weaker than expected CPI data. NewsWire / Nicholas Eagar Credit: NewsWire The RBA is set to meet on Monday and Tuesday next week, and is expected to reduce the official cash rate by a further 25 basis points, bringing the official cash rate down to 3.60 per cent. Ms Ellis said the arguments against a hold, including waiting for quarterly economic data won't hold up. 'Nothing the RBA will learn in the subsequent five weeks will change the decision to cut,' she said. 'And explaining to the assembled mainstream media that you hesitated because (in essence) unemployment is 'too low' and employment growth is 'too strong' to do so will not land well with that audience.' Mortgage holders received a major boost last week with inflation coming in significantly lower than forecast, opening the door for a July rate cut. Ms Ellis says it will be hard for the RBA to justify why they held rates. NewsWire Monique Harmer Credit: News Corp Australia The latest consumer price index rose by 2.1 per cent for the 12 months to May 2025, beating expectations of 2.3 per cent. The all-important trimmed mean inflation rate, which the Reserve Bank considers when making decisions about the cash rate, came in at 2.4 per cent. This is the lowest level since November 2021. Falling inflation data was offset by stronger than expected employment figures which held at 4.1 per cent. While the RBA runs a dual mandate of both price stability and full employment, too many Australians in a job can be seen as having a negative impact on inflation, as more people can buy a limited amount of items, driving prices higher. Ms Ellis said a large swing in monthly data, like Australia saw in May can 'tell you enough about quarterly results' even if there is a future upsize surprise. 'Key components of domestic inflation – rents, home-building, insurance and personal services – all surprised on the downside, she said. 'Some of these components are still only measured quarterly and so are locked in for the June quarter read. 'Likewise, another monthly labour force release and the last-ever retail sales number will not change the current view on the economy. 'More information is usually better, but not always by enough to be worth waiting for.'
Perth Now
2 days ago
- Perth Now
Why locals may have to pay more for rubbish collection
Eastern suburbs residents have been warned they could have to pay more to have their rubbish collected if a publicly-funded waste facility is sold to a private operator. The future of the Eastern Metropolitan Regional Council's Red Hill waste management facility has been thrown into doubt as its member councils leave or contemplate leaving. Red Hill accepts a wide range of waste from the general public, commercial operators and local, regional, State and Federal government organisations. But a former EMRC chairman has warned a spate of councils deciding to 'take the money and run' could lead to Red Hill being sold to a private operator and prices for waste disposal increasing. The City of Belmont was a founding member of the EMRC but withdrew in 2021, leaving the cities of Swan, Kalamunda and Bayswater, the Shire of Mundaring and Town of Bassendean as the remaining members. The City of Kalamunda withdrew its membership in 2023 and the Shire of Mundaring announced in April it would withdraw its membership effective from July 1. The Town of Bassendean and City of Bayswater each held meetings behind closed doors during July about the EMRC, with their resolutions kept confidential. Although Bassendean's meeting on June 10 was behind closed doors, former town councillor and past EMRC chairman Jai Wilson used public statement time to speak against the town leaving the EMRC, warning it could lead to the sale of Red Hill. Jai Wilson (centre) with past Bassendean mayor Renee McLennan and past Bayswater mayor Dan Bull. Credit: EMRC Mr Wilson said he was elected to the council in 2017 on a ticket of the town remaining an active member of the EMRC. Its member councils then raised $100 million to develop a large-scale FOGO plant. 'What happened when that $100 million got saved is that some greedy local governments — Belmont, Kalamunda and Swan — formed a view that they would like to do a smash and grab on that $100m and divert it away from the purpose for which it was raised, to take it as money they could spend on vanity projects,' Mr Wilson said. 'They formed a view they would leave the EMRC, take that money that had been saved for that project and send their ratepayers' waste to a privately owned incinerator. A ridiculous and disappointing outcome but that's how democracy works. 'We now find ourselves in a situation where more councils are looking to leave and take the money and run. 'That means this goes one of two ways: we either keep Red Hill and the facilities we built up through shared investment in public hands, or we allow it to get sold for cents in the dollar in a fire sale to some foreign multinational corporation that will do certainly two things — jack up prices to recoup money they invest in buying the plant at all of our expense and two, cut corners which will risk the health and safety of the workers that are there and the environment.' The EMRC released a prospectus in May encouraging investment from waste recovery and waste-to-energy related operators. Mr Wilson said the State Government had 'sat on its hands' and needed to keep Red Hill in public ownership. 'It is open to the State Government to support whichever councils ultimately decide to stay in the EMRC, to pay out the greedy councils who want to take the money and run, and to have a borrowing facility to allow the remaining councils to continue to operate the plant,' he said. 'Make sure that the greed of those councils who have misappropriated these funds is not rewarded in any way.' Mr Wilson also asked why the discussion would be behind closed doors. Acting CEO Paul White said it was partly because it involved a contract the council had entered into or could enter into. 'Secondly, the urgency and haste with which circumstances have developed require the ability for the council to be fully briefed and have an open, frank discussion which in this case is best held behind closed doors,' he said. 'There will be information that is publicly made available in due course.' Kalamunda mayor Margaret Thomas said the city withdrew its membership after a decision at its November 2022 meeting. That decision was also made behind closed doors. Belmont CEO John Christie said the city withdrew its membership because 'after careful consideration, (it) didn't see enough value for our community to continue'. The City of Swan was contacted for comment.
Perth Now
2 days ago
- Perth Now
South Perth and Bassendean consider cost-of-living crisis
The City of South Perth and the Town of Bassendean have announced their budget priorities while trying to keep rates rises to a minimum, acknowledging the 'cost-of-living' crisis is making things difficult for residents. South Perth residents will face a rates rise of 2.8 per cent, in line with the Perth March CPI figure and below increases that have been introduced by some other local governments. This is the seventh consecutive year the city has kept rate rises at or below the Perth CPI figure. Budget highlights include $12.5 million for Collier Park Golf Course buildings, $1.4m to upgrade irrigation and lighting at Sir James Mitchell Park, $1m to restore the Coode Street Foreshore riverbank and over $950,000 to construct a public toilet and changing place facility at Neill MacDougall Park. The $12.5m allocation to the Collier Park Golf Course is part of a $19.8m project co-funded by Clublinks. Safer roads have also been prioritised, with $225,000 for the infamous Dyson Street/Canning Highway black spot as well as $3.5m to deliver various road improvements. South Perth mayor Greg Milner said the city's budget prioritised financial sustainability as it built on its third consecutive operating surplus. 'We're maintaining $800m worth of essential services, assets and infrastructure while being mindful of the ongoing cost-of-living pressures affecting our community and global economic uncertainty,' Mr Milner said. 'We're focusing on ensuring our city continues to be renowned for its beautiful places and active spaces. We're investing in ensuring our parks and recreation spaces are enjoyable places for everyone, that our roads are safer and that our communities are places where people feel connected.' The city will also waive dog and cat registration fees to 'make it easier and more affordable for owners to register their pets'. Residents in Bassendean will face a 3.91 per cent increase to their rates. Mayor Kath Hamilton said the town's budget would provide 'tangible value to residents'. 'We've worked hard to strike the right balance between necessary investment and financial restraint,' Cr Hamilton said. 'Thanks to savings identified through our operations review, we've kept rate increases to a minimum and we're proud to maintain current waste charges without any fee increase for residents. 'Every investment in this budget is thoughtful and targeted — ensuring that every dollar is working hard for the people of this district.' The town has secured almost $7.7m in external funding through grants and election commitments for key community projects, such as the Ashfield Flats Master Plan, redeveloped facilities at Jubilee Reserve and Bassendean Oval. 'These projects will breathe new life into our local spaces — supporting sport, recreation, and connection across all generations,' Cr Hamilton said.
