The City of Mandurah council will consider adopting a 4.43 per cent increase to rates as part of its 2022/23 budget.
The rise, if endorsed at May's council meeting, will equate to an additional $70 per year for the average residential ratepayer.
According to the City officer's report, due to increases in Mandurah's costs related to inflation, materials, transportation and subcontractors, a rate hike will be necessary this year.
The report further said Mandurah's infrastructure, services and amenities needed to expand to meet the requirements of the population growth and the City's ageing infrastructure required investment.
Mandurah mayor Rhys Williams said it was important to keep the momentum of investment in the City centre going.
"With a considered and strategic approach, we are able to rise to the current financial demands and continue the positive momentum we're seeing here in Mandurah, while minimising the impact on ratepayers to below that of inflation and below what a large part of the local government sector is anticipating," he said.
"The work we've been doing on the Waterfront Project has already seen us attract significant private interest, which is vital in creating short and long term economic benefits, including jobs, for our community."
If approved, the proposed rates in the dollar will be set at:
- Residential Improved - $0.10202
- Residential Vacant - $0.17328
- Business Improved - $0.09879
- Business Vacant - $0.17605
- Urban Development - $0.13883
The City also sets a minimum rate amount to ensure all ratepayers contribute towards local government services and programs.
The proposed minimum rates for 2022/23 will be set at:
- Residential Improved - $1,178
- Residential Vacant - $975
- Business Improved - $1,178
- Business Vacant - $1,178
- Urban Development - $1,178
Income from rates makes up approximately 70 per cent of the City's operating revenue.
If approved by the City council, the proposed rates will be advertised and residents will be invited to lodge written submissions.
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Following this process the council will be set to adopt its 2022/23 budget in June.
Capital works and projects in the proposed budget include completing works on the Falcon Bay Foreshore, connecting the coastal 'bridge to bridge' cycle and walking trail, economic and community grants, community and economy-focused events and activations, community safety initiatives, waterwise and energy initiatives, and investing in people and projects to diversify the economy.
Mr Williams said council had developed a budget that continued the positive momentum seen across Mandurah but also addressed the cost of living issues currently faced by residents.
"To achieve a forward-looking and responsible budget in this current environment, we have managed to rework our capital works program to prioritise immediate need and most impactful projects and the City has been successful in reducing its operating expenses.
"We're also increasing our focus on vital maintenance across our $1.3 billion asset portfolio, so our community can keep enjoying all our great places and spaces well into the future, without inheriting an unnecessary financial burden."