ECONOMIC stress and inflation have contributed to a 4.9 per cent rates increase for residents in the City of Kalamunda.
The increase comes after a downward trend was identified in the City’s ability to cover operational costs and have revenue available for capital funding or other purposes, known as the operating surplus ratio.
“There are three key reasons that this ratio is in decline, they are; rates revenue not matching operating expenditure, depreciation increases and cost of services and assets,” the City report said.
“For the 2022/23 year the City now faces a fourth issue being increasing inflation because of global and domestic economic issues generating high levels of economic uncertainty, and further upward pressure on costs.”
In 2021, the minimum rate for general properties rated by Gross Rental Value (GRV) was $882, this year it is $925, a $43 increase.
The recommendation that council approve the rate increase was carried unanimously by councillors and without discussion at Tuesday’s council meeting.
Before the meeting residents took to social media in outrage to the proposed increase, however, no residents or ratepayers attended the meeting to express their feelings to the council before the final decision.
“[I am] tired of them allowing big rises year after year, they should be more cost conscious instead of spending our money on anything and everything,” one commenter said.
The approved minimum rates will now go to public advertising before the next financial.
By Morgan de Smidt