Inflation key to easing rates in Shire of Augusta-Margaret River

Shire of Augusta-Margaret River ratepayers could see some relief from ongoing steep rates rises — but only if the nation’s inflation rate settles in coming years.

A long-term forecast for ratepayer pain was released last week in the shire’s updated long-term financial plan on the same night elected members agreed to advertise a 4.9 per cent general rates increase for 2024-25.

While the shire’s LTFP projected future rates rises at about one per cent above the Consumer Price Index – based on a settling of inflation – ongoing increases looked to remain at or above 3.5 per cent.

“This increase is the minimum required to fund the forecast deficit between expenditure and revenue, with some expenditure items generally forecast to increase by more than Perth CPI,” the report by corporate and community services director Melanie Stevens said.

Council members at last week’s meeting acknowledged rates were among the bills households continued to see on the rise.

“The pressures on the shire continue to grow,” Cr Ian Earl said.

“We need to make sure we grow our income to provide the services our community desperately needs.

“We continue to try and make the savings where we can, but if we don’t put our rates up, it will come back to haunt us down the track.”

New councillor Melissa D’Ath made amendments to reduce fees and interest charges for those paying by instalments, which she said affected the hardest-hit residents.

The LTFP authors said the national outlook was subject to unpredictability and tied to growth in CPI, which generally ran below the true cost for regional local governments.

“Inflation is at levels not seen in many years and interest rates have been increasing at a record rate,” the report said.

“In the absence of economic certainty, base-year operating revenues and operating expenditures have been escalated in accordance with specific, researched assumptions.”

The latest LTFP also links to the shire’s asset management and workforce plans, which are both subject to pending reviews.

While the report continued shire rhetoric about being mindful of ratepayer cost pressures, it also pointed to some big factors — including wages, its biggest expense, as well as insurance bills — as exceeding CPI growth.

The latest budget outlines record growth in new rateable properties at 3.4 per cent in 2023-24, equating to more than 350 new properties.

The LTFP also factors in one major new loan during the next decade, though that borrowing was already earmarked for replacing the shire’s essential operating software system.