Taxpayers say proposed 4.9 percent hike puts unfair pressure on struggling businesses and residents

Ratepayers have expressed dismay at a proposed 4.9 per cent rate increase, expressing concerns for the local business sector and questioning measures being taken to rein in spending.

Residents, including Rotarian and CPA Julien Sanderson and former Chamber of Commerce President Pierre Every, said it was too easy for Augusta-Margaret River County to raise rates every year rather than to examine its own effectiveness.

The two men — who were backed by a contingent of taxpayers who echoed those views to the Times — said no company could simply raise prices every year to make ends meet.

Mr Sanderson said any money lost from a lower 3.5 per cent increase was already offset by Shire’s underspending on staff costs.

“I am dismayed by the proposed 4.9 per cent rate increase, which flies in the face of calls for restraint from the Government and the Reserve Bank,” he said.

“The Times article claims that the rate increase ‘equals $2 a week for the average household,’ but that’s not the case for companies who, in many cases, are already doing things hard.

“Their increase will be well over $2 a week. »

Mr Every said he witnessed inefficient spending as a board member of Arts Margaret River when the Shire took over management of the Heart.

“The easiest way to manage your finances when you’re in the public sector is to simply increase rates by 4.9 per cent and there will be a massive increase in the Shire’s income from new homes,” said Mr. Every.

“How long would a business last if it continued to raise the price of its goods or services?

“My request is that the County tell taxpayers what specific steps are being taken to reduce expenses and improve productivity.”

Councilors were expected to consider the grade increase at next week’s meeting after announcing the elevator plan for public comment.

In approving the advertising rate, elected officials expressed the need to address skyrocketing costs despite record 3.4 percent growth in the rate base thanks to the region’s real estate boom.

Acting county executive Nick Logan defended the scope of the proposed grade increases.

“Our 2024-25 budget has carefully considered areas where we can save on spending and subsidize projects, to keep rate increases to a minimum and ensure we can fund all the services our community deserves and expects,” he said. he declared.

“Our proposed 4.9 per cent rate increase equates to $2 a week for the average household and is lower than the 7 per cent increase being considered in Busselton, Bunbury and Harvey, as well as the increase of 5.5 percent already adopted in Dardanup. .”

Margaret River Business Network chief Annie McFie backed concerns about pressure on small businesses.

“Costs for businesses are skyrocketing and we will see unprecedented business bankruptcies in 2024,” she said.

“While the proposed rate hike alone does not appear significant, it is compounded by several other rising costs, including the recently announced 3.75 percent wage increase in 2024, which follows an increase of 5.75 percent in 2023.

“It is important that additional costs for businesses are not considered in isolation, but in a context where businesses are currently facing increasing costs at every turn. »

Ms McFie welcomed changes proposed by new councilor Melissa D’Ath, former chair of the MRBN, to remove installment charges on part-payment of rates.