Bunbury ratepayers face prospect of a 7 per cent rate hike as council begins 2023/24 budget preparations

Bunbury property owners could be facing a further rate increase of $120 during the next financial year as the City of Bunbury gets ready to draft its 2023/24 annual budget. City of Bunbury councillors on Tuesday voted to have a draft 2023/24 annual budget prepared based on a rate yield increase of 7 per cent, resulting in ratepayers potentially paying an average of $1861. Ratepayers could continue to feel the pinch in the years to come with a draft 2023/24-2034/35 Long Term Financial Plan set to be prepared based on rate rises of 7 per cent for year one, 6 per cent in year two, and then 5.5 per cent rate increases for years three to 12 of the plan. According to a report provided to council, initial financial modelling has indicated rate increases of 5.5 per cent over each of the next 12 years would not be sufficient to fund all of the projects listed in the draft long term financial plan and councillors were asked to consider higher rate increases as a way to ensure the City has enough funds. Projects listed in the draft long-term financial plan include implementing a Climate Action Plan, expansion of the South West Sports Centre’s courts and upgrades to the Boulters Heights lookout and walkways. It comes after councillors voted down an 8.6 per cent rate increase for the 2022/23 financial year, opting instead to up the rates by 5 per cent to an average of $1741. The prospect of another significant rate rise sparked debate among councillors. Cr Betty McCleary, who moved the recommendation, told her fellow councillors it was up to council and its ratepayers to continue funding projects to build and maintain “our glorious city”. “There is no magic money tree sitting out the back,” she said. Cr Wendy Giles also supported the recommendation, citing that small rate increases in recent years have put the City “behind the 8-ball”. Cr Michelle Steck slammed the recommended 7 per cent increase, citing that ratepayers and residents are already doing it tough in the midst of housing shortages and increased costs of living. Cr Karen Turner echoed Cr Steck’s views, telling her fellow councillors that the City should be focusing on completing current outstanding projects and hold off on starting new ones. “It’s time to tighten the budget and look at cost savings, push for more grants,” she said. “High rate increases are not the answer.” While several councillors could not stomach the prospect of drafting a budget based on a 7 per cent rate hike, the recommendation was ultimately carried 6-5. Bunbury Mayor Jaysen Miguel told the South Western Times the City’s ongoing rate increases was all about ensuring the City is financially able to maintain current projects and services and undertake new ones, along with topping up various reserves. “It’s something we’ve always got to be mindful about, if we’re not keeping up with our expenditure, we’ll be in a situation where we may need to reduce services,” he said. “That’s always a very delicate conversation with council. “We have a certain level of service and community expectations for our maintenance and everything like that, so if there are reduced rates then we would have to try and cut costs which we want to be very careful about so we don’t end up with reduced services. “We are doing what we can to make sure we are maintaining expenditure but also just having to keep up with general rising costs.” He said council have also requested for an optimisation plan to be prepared looking at other ways the City can reduce operating costs, maximise revenue sources and increase cost recovery. The draft 2023/24 annual budget will return to council at a later meeting for final endorsement.