The City of Subiaco’s 2019-20 budget was adopted by Council on Tuesday 18 June. Council endorsed a 2.18 per cent rate increase and no increase to the City’s waste service charges. The budget has been developed to reflect the cost of delivering essential services to every property and ensures the community continues to enjoy quality facilities, services, parks and streets.
The 2019-20 budget also focuses on maximising income from the City’s investment portfolio, the proceeds of which fund major capital works projects, which in turn helps keep rates down. This alternative revenue stream is a sustainable approach which aims to secure the city’s financial stability for the long-term.
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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