Misplaced blame

A REPORT in the July 22 edition gives the mayor of South Perth saying that changes in gross rental value, as supplied by the Valuer General’s office, are responsible for pushing up rates within the City of South Perth.

This is incorrect and misleading.

While GRVs have increased since 2011, it is the City’s decision to calculate and apply a rate in the dollar against these valuations to bring in the revenue for the year.

The City could have adopted a lower rate in the dollar on these new valuations to bring about a reduction in our annual charges or a modest increase.

It must also be remember that the City’s revenue is forever increasing by way of multi-unit developments. In a typical case, where an older house is demolished and replaced with a duplex, the rental value and therefore the City’s income are doubled.

These figures escalate with high-rise tower developments.

Other local authorities who mainly reply on broad acre subdivisions and providing new facilities have greater justification in increased charges.

While accepting the City does meet increasing costs, it is not accurate to blame a 6.96 per cent increase in our annual charges on a shift in gross rental values from 2011 to 2014.