Council's 2023/24 Annual Budget was adopted at its June, 2023 meeting and will see a 6% rate increase.

Once again, this proposed increase will be well below the actual 2022 Consumer Price Index (Perth CPI) of 8.3%.

RATE INCREASES SNAPSHOT

Year

Rate Increase

CPI

2021

0%

5.7% (Perth actual CPI)

2022

4%

8.3% (Perth actual CPI)

2023/24

6%

4.0% (forecast)

(Planned under Long Term Financial Plan)

2024/25

5%

3.2%

2025/26

4%

2.42%

2026/27

4%

2.55%

 

WHY 6%? 

Just like your household budget, our Shire Budget is also impacted by inflation. You have no doubt noticed the effect at the supermarket checkout or fuel bowser recently. We are paying more for goods and services too. For us, we are noticing the increasing costs of things like paint, road materials, equipment servicing, labour, plants, water, electricity and more.

When we pass on a rates increase that is below CPI, it means (in the short-term) we need to reduce our level of service to the community. In the long-term it is just not sustainable because we can only delay maintenance and replacement schedules on our infrastructure for so long. Similarly affected are our community events and programs, donations and grants.

Factors taken into consideration when assessing the percentage by which rates need to be increased include:

  • Shire growth;

         (On average, our population grows by 2.11% each year. Source: id consulting)

  • Additional resource demands as a result of growth;

         (Traffic volumes, recreation facilities, regulatory services, planning and building services.)

  • Rising cost of labour and materials;
  • Previous rate increases approved;

         (Impact on finances of rates freeze in 2021/22.)

  • Affordability of a reasonable rate increase.

 

WHAT EFFECT DOES THAT HAVE?

A rates increase of 6%, represents an increase of $99.40 to the average household. 

This increase will generate an additional $882,593 of revenue on last financial year and a total rates revenue of $15,592,484.

Currently a one percent rate increase raises approximately $147,000 in additional rates income.

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WHERE WILL THE ADDITIONAL $882,593 BE SPENT?

The additional funds will only partially cover the increasing costs of providing our services to the community.

Outcomes of upcoming maintenance reports will enable council to prioritise projects requiring attention to ensure building standards are maintained along with increasing reserve funds in preparation for planned bigger projects in coming years.

There is no specific large project or programs scheduled for 2023/24 due to the huge capital works program completed over the past two years enabled via additional Federal and State government COVID economic stimulus grants.

Capital Works are being consolidated to only completing projects that are already funded and committed to including the new Library, Administration and Community Building and the R&J Fishwick Pavilion at Eaton Oval.

Work will continue on seeking external grant funding support in the hope of being able to progress planned projects like a renovation of the Eaton Recreation Centre change rooms. But without additional funding support, these projects will stay on hold.

Only upgrades on significant regional roads will occur in 2023/24 including Pile Road and Ferguson Road. We are waiting on advice from Main Roads WA before progressing potential upgrades on Eaton Drive.

For now, focus will be on renewal and maintenance activities.

WHAT IF YOU DON’T RAISE RATES?

We would need to begin cutting services, programs and events plus risk some of our assets falling into disrepair.

 

ARE RATES GOING UP BECAUSE OF THE NEW LIBRARY, ADMINISTRATION & COMMUNITY BUILDING?

This project represents a new chapter in the history of the Shire of Dardanup. With this new building we’ll deliver a community hub of the future providing an engine room for collaboration, connection and innovation while showcasing the potential for leading sustainable timber construction.

It’s a $16.25 million building with a total project cost of $18.6 million. This is how it is being funded:

  • $5 million sale of land to Citygate Properties
  • $7.5million in borrowings, which will be repaid by expected new rates revenue from the existing site once it is occupied by Citygate and lease of commercial space within the proposed new Shire building.
  • $6 million from Council Reserves from previous land transactions and savings towards the new building.

 

BUILDING FAQs


WHAT ARE YOUR FINANCIAL CREDENTIALS?

According to data provided by the My Council website, the Shire of Dardanup’s Financial Health Indicator was above the state average in 2018/19, 2019/20 and 2020/21.

In the 2021/22 Financial Year, the Shire of Dardanup once again received an unqualified audit, and the audit report again indicates that Council’s financial management and governance practices throughout the organisation, are of a very high standard.

 

WHAT HAVE YOU DONE OVER THE PAST YEAR TO IMPROVE LIFE IN THE SHIRE OF DARDANUP?

Please consider reading our 2021/22 Annual Report which provides a deeper insight into milestone projects achieved. Highlights have included: