Shire of Donnybrook-Balingup adopts the South West’s biggest rate increase for 2021-22 in a bid for stability

The Donnybrook-Balingup Shire Council will hit its ratepayers with the biggest rate hike in the South West. The South Western Times reported last month property owners were facing an 8.6 per cent increase to their charges this financial year — roughly $200 more than 2020-21. Councillors officially endorsed the massive hike at a meeting last Wednesday, just one year after a Statewide freeze on all rates and charges. Shire president Brian Piesse said while there were many factors to the increase, the council was putting a greater focus on “own-source revenue” given its reliance on government funding. “While Federal and State grants are flowing presently, securing confidence in our future will require a greater focus on own-source revenue and expenditure controls, whilst still seeking to maximise grant opportunities when available,” Cr Piesse said. “In the past five years, this Shire has increased its tied and untied grant income by some 70 per cent to approximately $54 million compared to the previous five years.” Shire chief executive Ben Rose said there were inherent challenges related to a reliance on grant funding and revenue sourced from rates would provide stability. “With rates historically kept low and our rate income representing just 23 per cent of all revenue, the second lowest in the South West, the Shire’s heavy reliance on Federal and State grants to fund operations creates a challenge in terms of future sustainability,” Mr Rose said. “This reliance on Federal and State funding is not a challenge that this Shire faces alone — almost all small to medium-sized regional local governments are faced with this challenge.” Mr Rose said it was difficult to make a direct comparison to last year given the incorporation of the council’s Waste Management Levy into rates for this year. “A determining factor in development to shift the Waste Management Levy into general rates is to enable a more equitable distribution of costs in relation to waste management,” he said. “The decision to make this change was approved at the June 2021 council meeting, with one key benefit being the availability of State Government rates concessions to eligible person — generally seniors, pensioners and concession card holders.”