THE City of Kwinana is looking to increase improved residential rates by 3.5 per cent and is advertising the figure for 21 days as part of its budget preparations.
The Local Government Cost Index, which measures the inflation on local government expenditure, is estimated to increase by 2.9 per cent for the 2015/16 financial year.
Rates in the dollar would increase by 6 per cent for general industry properties and 10 per cent for large-scale general industry properties.
The City is arguing that its continued expansion – the number of properties has jumped by 29.5 per cent in just five years – means more services are needed to meet the needs of the community.
Under the proposed changes, the minimum payment for residential properties with a home built, vacant land and improved special rural will rise to $916.
Minimum repayments for light industrial, general industry and large scale general industry will each rise to $1190.
General industrial, mining and urban/urban deferred will rise to $1190 and rural will be $916.
The City has a vacant residential rate in the dollar higher than the improved residential rate to encourage land development.
Under the proposed rates increase, the number of minimum rated vacant properties would be abut 65.75 per cent of the total vacant residential properties.
The City can not have more than half of its properties in one class on minimum payments without prior consent from the Local Government Minister.
The City will need to apply to the Minister because there are so many vacant properties.