Local Government rate increases limited to inflation.

Local Government rate increases limited to inflation.

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Peter Hutchinson started this petition to Shire of Dardanup

In Western Australia to Local Government cost index forecasts from the Western Australian Local Government Association (WALGA) are projected to be 1.4% in 2021/22 and 2% in 2022/23. 

Despite these cost projections the Shire of Dardanup are proposing rate increases of 3% in 2021/22 and 4% each year thereafter in their 10 year Long Term Financial Plan (LTFP). 

These proposed increases are well in excess of the Local Government Cost Index and the CPI target of the Reserve Bank which is between 2-3%.

The Southwest of Western Australia has been one of the fastest growing regions in the country for in excess of 10 years. With this growth come pressures of Local Government Infrastructure and so additional revenue is required. However, this growth also brings additional rates revenue through extra rateable properties.

Increases above this growth are not sustainable i.e. the more you grow the more you need in excess of the initial growth.

With the exception of 2020/21 where the premier of WA instructed Local Governments not to increase rates as part of the COVID-19 relief measures. In every other year for the past 20+ years have been above both the Local Government Cost Index and CPI.

I am requesting that the Shire of Dardanup council adopt a policy to limit rate increases to WALGA’s Local Government Cost Index. 

A policy like this will force the administration to consider appropriate cost efficiencies when setting a budgets that are put forward to council and could only be repealed if an absolute majority of council agreed to do so. In the event a policy like this was repealed then council would ultimately need to answer  to the community that votes for it.

 

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