The City of Mandurah council agreed to advertise a 4.43 per cent increase to rates as part of its 2022/23 budget.
The rise will equate to an additional $70 per year for the average residential ratepayer.
The proposed rates will soon be advertised and residents will be invited to lodge written submissions.
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.
The motion to advertise the rate increase was moved by Cr Peter Rogers and seconded by Cr Dave Schumacher.
Cr Ryan Burns, who was for the motion, said the rate increase was required.
"The City is facing significant cost pressures to provide services we deliver," he said.
"Two years ago we had no rate increase and last financial year was a modest rate increase.
"This option gives some buffering to inflation."
Cr Ahmed Zilani was the only councillor against the motion, calling on a 0% rate increase for the 2022/23 financial year.
"Residents are skipping meals to survive in this environment of escalating living costs," he said.
"Why are we increasing rates by 4.43%?"
However, Cr Rogers said voting for a 0% rate increase after approving the long-term financial plan would be the equivalent of "having cake and eating it too".
"It would rob us of the ability to pay for the services and improvements we voted for in our 10-year budget plan."
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 about 70% of the City's operating revenue.
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."
Following the advertising period of the rates the council will be set to adopt its 2022/23 budget in June.