Karratha residents to be hit by 3 per cent rise in City of Karratha’s proposed 2022/23 rates model

A proposed 3 per cent increase to rates for Karratha residents would see the local government rake in more than $2 million in extra revenue. At the April 28 meeting, City of Karratha councillors endorsed the proposed 2022-23 differential rates which would see 3 per cent increase on rates, below the Consumer Price Index for the December quarter of 5.7 per cent. A City officers’ report stated operation costs would increase for the 2022/23 budget because of insurance premiums increasing by about 16.5 per cent, increases in staffing levels and employment costs as well as facilities upgrades. Under the proposed model residents’ rates would increase by $69 from $2280 to $2349 per property, while commercial and industry properties would rise by $217 from $7216 to $7433. The report stated property investments by the City, including The Quarter HQ, which is currently returning 8.3 per cent, continue to provide an alternative revenue source to reduce reliance on rates. “However, with rate increases at less than CPI over recent years, increases in own source revenue (rates, fees and charges) have been unable to meet the additional cost of operating expenditure leading to increased reliance on reserves,” it stated. City Mayor Peter Long said inflation in Perth was at 5.7 per cent. “The 3 per cent actually won’t cover the increased costs that we’ve got coming in but council thought it’s the first time it’s gone up significantly for a while so we’ll keep it at a very moderate 3 per cent,” he said. Cr Long said the revenue from rates only covered the City’s staff. “It’s probably not enough but our council is very concerned about small businesses,” he said. “A lot of small businesses are suffering a lot.” The proposed rates differential will be open for public comment until May 23.