City of Cockburn adopts budget, supporting steep rates rise to avoid ‘taking things out of the trolley’

Cockburn Council has adopted its budget for next year, backing a controversial 6.75 per cent rate increase to prevent community projects being cut and running at a huge deficit.

This increase comes after a six-year period during which Cockburn had one of Perth’s lowest growth rates, averaging 3.88 per cent. Council members voted 6-4 to support the increase and passage of the budget.

The average property will see an increase of approximately $2.50 per week or $132 per year, not including annual fees such as minimum payments and pool inspections.

After the proposed rates and budget were opened for public feedback, the city received almost 200 submissions. Many said they did not support the increase, claiming the spending seemed “excessive” for non-essential projects.

Mayor Logan Howlett has proposed an alternative 5 percent rate increase to ease financial pressure on residents. It lost 3-7.

“Given the cost-of-living crisis affecting the broader community, with current interest rates, food, oil and other service delivery needs making it increasingly difficult for many of our taxpayers to meet these demands, it is within the consciousness of councilors to recognize the most effective way to help our community,” he said.

Cr Tarun Dewan said it was the council’s responsibility to minimize its expenditure.

“We could look at our internal training programs, go on fruitless international and national trips, even look at improving efficiency by reorganizing the structure of the council,” he said.

Cr Chontelle Stone said she understood why a lower increase would be “attractive”, but said the city would struggle to deliver long-term projects if they continued to operate at a significant deficit.

“Costs are up. CPI is up, utilities are up, fuel prices are up, employee costs are up, contractor costs are up… we don’t have the option to absorb those increases,” he said.

“A household budget is a good example of this. If your weekly income drops by $100, you have two options: Either you buy $100 worth of groceries from the car, or you put it on a credit card and pay it back with interest, which will cost more later.

“What aren’t we going to do if we’re collecting $2.5 million less every year? What are we going to get out of the streetcar in the years to come?”

Cr Stone said the city had saved $4 million in budget through various budget workshops and reduced non-essential services.

“We’ve already trimmed the fat, and to be completely honest, to properly balance our budget and erase the operating deficit… our rate increase would actually have to be over 9 percent,” he said.

“We agreed on 6.75 percent”

The budget report claimed that the sudden increase was due to the city running a deficit in the last few years. The city aims to return to an “operating surplus” through the new budget, projecting a $300,000 closing surplus, the report said.

The 6.75 per cent is an increase in total rate income and does not equate to a flat increase of 6.75 per cent across all individual rate statements. Individual residential taxpayers will see their rates increase by approximately 2 percent to 12 percent, depending on changes in their property’s valuation.

The minimum housing wage payment of $1698, corresponding to a weekly increase of $2.06, will be valid for 13,892 houses. The 36,629 non-minimum residential properties will face an average annual wage of $2,133, an increase of $3.02 per week.

To accommodate rising cost of living pressures, interest and administrative fees on approved payment installment options will continue to be waived, but a 6 per cent penalty interest rate will apply on overdue rates.

The budget will deliver a $64.07 million capital works program next year, with a strong focus on renewing, replacing and improving existing assets and infrastructure. This will facilitate 135 renovation programs and 91 new or improvement projects.

This includes the development of Victor George Kailis Park, Atwell Reserve improvements, completion of the redevelopment of Beale Park and the refurbishment of assets at the Cockburn aquatic and recreation centre. General park improvement, road paving and trail maintenance are also included.

“We are seeing persistent cost pressures consistent with wider economic conditions. In response, we have taken a disciplined approach by reviewing our cost base, challenging assumptions and identifying efficiencies to minimize impacts on service levels,” the officer’s report said.

The city also budgets for $61.08 million to be transferred to reserves and $56.55 to be withdrawn to fund capital and operating commitments. This will result in an increase in reserves of $4.53 million for future use.