Households facing big rates rises - The West Australian

as posted here ... Households facing big rates rises - The West Australian

Households are facing a rates shock this year with local councils already backing increases of more than twice the rate of inflation.

In their draft budget reports, councils are blaming the rises on increases in staff and infrastructure costs and pressures from the State Government's 17.5 per cent rise in electricity tariffs.

The WA Council of Social Service said it was another blow for homeowners reeling from interest rate rises plus fee and tariff increases in the State Budget which will add almost $400 to annual bills.

Although most council budgets are being finalised, the City of Swan is recommending a 7.5 per cent increase for residential rates and the City of Wanneroo has projected a 6.9 per cent rise after 6.2 per cent last year.

This compares with a Perth inflation rate of 3.4 per cent and local government cost index - which includes construction costs - of 1.9 per cent in the year to March.

The Town of Vincent has flagged a 4.94 per cent rates rise, the City of Fremantle has advertised 5.5 per cent and City of Perth 6.5 per cent, though commercial rates are much lower.

City of Gosnells ratepayers are facing a 7.5 per cent rates rise and in the City of Rockingham, councillors have fought over its decision to raise rates 8.92 per cent a year.

Cr Deb Hamblin, who tried to limit the increase to 7 per cent, said the council needed to be mindful of the demographic it represented.

But Rockingham mayor Barry Sammels, who foreshadowed another 7-9 per cent rise in 2011-12, said while he had sympathy for ratepayers the council had to fund a new 10-year infrastructure program and increases in utility bills.

Earlier this year the WA Local Government Association said councils with high rates increases last year were unlikely to repeat them.

It also said the rise in electricity costs would account for about a one percentage point increase.

WALGA president Troy Pickard said yesterday this was very conservative and power costs, particularly for street lighting, were "blowing a big hole in a lot of local government budgets".

He said many councils showed restraint with rates rises last year and were faced with increases in construction costs and the challenge of being proactive to attract and retain staff.

Irina Cattalini, of WACOSS, said councils should weigh up investments in non-critical infrastructure against the impact on ratepayers.