The 2018-19 budget, adopted by council on Tuesday 12 June, has been developed to reflect the true cost of delivering essential services to every property. To ensure the city continues to enjoy quality services, facilities, parks and streets, council has maintained a moderate rate increase of 2.5 per cent.
The budget focuses on maximising income from the city’s investment portfolio - the proceeds of which fund major capital works projects to help keep rates down. This alternate revenue stream is a sustainable approach that will secure the city’s financial stability for the long-term.
In the upcoming year we have some interesting projects planned including initiatives to support local businesses, street dressing upgrades along Rokeby Road South and precinct planning arising from the draft Local Planning Scheme No. 5.
After considering all other funding sources, the remaining expenditure in the budget is funded by rates. Rates on properties are calculated using the gross rental value (GRV) method. A GRV is determined by Western Australia’s Valuer-General, in accordance with the Valuation of Land Act 1978, and is an assessment of the gross annual rent the property might reasonably be expected to make if let on a tenancy.
Council sets a rate in the dollar value and a minimum rate amount. The rate in the dollar is calculated by taking the total revenue to be raised by rates and dividing it by the sum of all property values within the city (total GRV). After considering all other funding sources, the remaining expenditure in the budget is funded by rates. The total revenue raised from rates is the amount needed to balance the city’s budget.
The individual GRV of a property is multiplied by the rate in the dollar to determine the annual rate amount for that property. If the calculated amount is below the minimum rate set by council, then the minimum rate applies.
For more information about your rates, visit the rates page.
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