Commissioners for the City of Perth have adopted the annual budget for next financial year, capping a rate increase for the commercial, hotel and retail sectors at 1.3 per cent.
Chair Commissioner Eric Lumsden said the 2019/20 budget establishes a responsible and sustainable financial management approach, while continuing to invest in major projects and making Perth a better place to live.
“Thorough financial analysis of recent spending has identified the City needs to be more fiscally responsible to be able to sustainably renew infrastructure, as well as set up the City for a successful future,” Chair Commissioner Lumsden said.
“This budget balances capital investment for major projects, while also identifying the economic difficulties facing some sectors of the business community.
“The City wanted to keep any rate rise to a minimum for the commercial, hotel and retail sectors to allow for an injection of growth and stabilisation in these struggling areas.
“The City identified these sectors as being in need of a concessional rate increase of 1.3 percent, while the rate in the dollar for office, residential and vacant land will be limited to 2.85 percent in 2019/20.”
With overall expected operating revenue of almost $208 million the City will invest in a range of major capital works projects, renew infrastructure and future-proof City operations by implementing improved management systems for greater transparency in reporting and accounting.
Almost $57 million has been set aside for major capital works projects including $20 million for the redevelopment of Wellington Square, East End Revitalisation Project and Forrest Place Pedestrian Walkways.
$18 million has been allocated to ensure the maintenance and upgrade of city infrastructure such as roads, parks, paths and drainage, and $13 million for improving City processes including financial and parking management systems.
“Since the appointment of Commissioners and new CEO, a renewed focus has been on greater transparency in financial reporting, variance management and accountability for outcomes, ensuring a capacity to deliver on capital programs and determine the true cost of the City’s operations,” Chair Commissioner Lumsden said.
“The City has strived to minimise the increase to ratepayers but it is required to ensure the City can operate and provide the necessary infrastructure for a capital city expected by residents, tourists and businesses alike.”
The City of Perth has adopted the following for 2019/20:
Commercial – 5.63576 cents in the dollar;
Hotel – 5.63576 cents in the dollar;
Office – 4.68096 cents in the dollar;
Residential – 5.90393 cents in the dollar;
Retail – 5.63576 cents in the dollar; and
Vacant Land – 6.43702 cents in the dollar.
The minimum rate payment that applies to all rateable properties within the City has been set at $726 to support the City’s strategy of encouraging living in the city.