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The Finance Base
The Money Desk · Blog
Re:

Wanneroo Adopted Its 2022–23 Budget With a 3.75% Average Rates Increase

The City of Wanneroo adopted a $235 million 2022/23 budget with a 3.75% overall average rates increase, down from 4% proposed. Individual rates depend on category and valuation.
From TheFinanceBase Team2 min to read
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The City of Wanneroo adopted a $235 million budget for 2022/23 on 28 June 2022, with an overall average rates increase of 3.75%—below the 4% increase proposed in May. The final average is a citywide figure, not a promise that every property’s bill rose by 3.75%: individual rates depend on the property’s category, valuation basis and minimum payment.

What Wanneroo’s adopted budget changed

The City’s adopted budget allocated $58.4 million to capital works. Its statutory budget records an overall average rates increase of 3.75%, compared with the 4% increase in the City’s May proposal. The City said the final rate-in-the-dollar and minimum rates reflected both Council applying a lower increase and amended valuations received from Landgate.

The City also said the increase amounted to less than a dollar a week for the majority of residential ratepayers. That is the City’s characterization of the majority, not a calculation that applies to every household.

Why the 3.75% average is not every household’s increase

Wanneroo calculates rates using a property’s valuation and the rate that applies to its category. The City’s notice describes the process as determining how much must be raised through rates after other revenue, dividing that amount by the combined rateable property values supplied by the State Valuer General to set the rate-in-the-dollar, then multiplying that rate by the property’s Gross Rental Value (GRV) or Unimproved Value (UV).

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As a result, the overall average does not by itself tell an owner how much their individual bill changed. The relevant comparison is the same property category and valuation basis, including the applicable minimum payment. Amended valuations also affected the final schedule.

Proposed and adopted residential improved GRV rates

For residential improved properties assessed on GRV, the City’s published figures were:

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Schedule Rate in the dollar Minimum payment
May 2022 proposal 8.0832 cents $1,038
Adopted 2022/23 schedule 8.0638 cents $1,035

These figures compare one category and valuation basis only. Other categories had their own rates and minimums; the figures above should not be used to infer a bill for a different property type or valuation basis.

Where the budget was directed

The City’s adoption announcement highlighted capital and service priorities including:

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  • $2.8 million in additional funding for pathways and trails, including $1 million for the Active Transport Plan.
  • $1.3 million in additional funding for the Wangara industrial area CCTV network and CCTV or automatic gates at four public car parks.
  • About $5 million for parks.
  • $4.8 million for foreshore and coastal management and bushland preservation.

PerthNow’s budget overview separately reported allocations of $57.3 million for roads, paths and street lighting; $33.7 million for waste and recycling; $43.7 million for sporting facilities; $18.7 million for community facilities; $29.9 million for parks and playgrounds; $18.9 million for community health, safety and emergency management; $12.1 million for conservation and foreshore management; and $10.8 million for libraries, museum and heritage programs. These are the newspaper’s reported category figures.

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Sources and budget context

The City announced the adoption on 28 June 2022. Its budget announcement and 2022/23 statutory budget provide the primary references for the adopted budget and rates schedule. The City’s May notice on proposed differential rates set out the proposal and invited feedback until 5:00pm on 2 June 2022.

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PerthNow reported that Council voted 12–1 at a special meeting and listed operating revenue of $211.9 million, operating expenses of $220.7 million and rates revenue of $147.3 million. Those figures are secondary reporting; consult the City’s statutory budget for official budget line items.

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