Commissioner Steven Cole said the annual budget aimed to restore financial sustainability but also considered the current economic climate.
"The City has reduced its operating expenditure from $118 million in 2014-15 to $115 million in 2015-16, a reduction of 2.2 per cent," he said.
"Together with an overall reduction in staffing levels and significant savings being made across the organisation generally, the City is prudently positioning itself for its return to democracy in October, 2015."
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READ NOWMr Cole said despite the 7.37 per cent rate increase, the City of Canning remained one of the lowest rating local governments in the metropolitan area.
Its 2015-16 budget includes expenditure to maintain existing facilities, including $2.6 million on parks, $10.5 million on Leisureplex operations, $15 million on aged care and disability services, and $2.1 million on street lighting.
The City will also undertake significant infrastructure work, with $6 million going towards road renewals and $8.5m on road improvements.
Mr Cole said the City remained committed to community events.
The City's finances have been supported by $14.8 million in operating grants and an additional $7.5m in capital grants.