2014-2015 Budget

Media Response 15 July 2014

Please attribute the following comments to City of South Perth Mayor Sue Doherty

What is the 2014/15 rate increase in percentage?

The combined increase in Rates, Rubbish Charges & Emergency Services Levy (ESL) for an ‘average’ property in the City for 2014/2015 will be 6.96% or $2.63 per week. Some 9% of ratepayers will experience a decrease in their rates. While 21% will incur increase of less than 5% and 27% of ratepayers will have an increase of between 5-10%. 

What is the last five years rate increases in percentages?
2010/2011 increase 5.8%
2011/2012 increase 5.5%
2012/2013 increase 4.5%
2013/2014 increase 5.1%
2014/2015 increase 6.9%

What is the driver behind the rate increase?
The main driver behind rates increases has been changes in Gross Rental Values (GRV). These have increased on average by between 16% and 21%, and are reassessed every three years.

Other factors have included increased State Government charges for power, which impacts on street lighting, water and petroleum based products such as asphalt for roads and fuel. New or increased State Government levies that local governments are required to pass on have also impacted on costs, such as the waste levy payable to the State Government, which will double from $28 to $55 on 1 January 2015. 

According to the budget, the rate in the dollar of 6.0700 cents is the third lowest to be levied by the City at any time since 1997. Why is this so?
The overall increase in GRV across the City was 16.7%.  Council however decided to take steps to ensure that many of our ratepayers experience rates changes much less than this, lowering the rate in the dollar to 6.0700 cents, compared to 6.5473 last year.

Do you have an idea of what rates will be after the City and Town of Victoria Park become one reality?
The City of South Perth and Town of Victoria Park have fairly similar ‘rating efforts’ relative to GRV, we expect any rates struck will reflect this. The Town has recently implemented a differential rating system which the City does not have in place. Whereas the City has a separate rubbish charge which the Town does not have.

Further analysis and modeling will need to be undertaken once any new boundaries are determined.

How does the City's budget increase in percentage compare to surrounding local governments?

The City’s average rates increase of 6.96% for a typical property or 5.08% for one with a minimum rate is less than the Town of Victoria Park’s average rates increase of 12%. As the City of Canning has not adopted their budget no comparison is available.

It is important to recognize that each local governments circumstances differ, depending on alternative non-rates revenue streams such as parking revenue.

Media contact

For media enquiries, please contact the City’s Communications Officer.