Rates tipped to rise in Rockingham for next decade to pay for ‘massive’ increases in business plan costs

There is no sign of relief from rates increases for the next decade in the City of Rockingham.

The city’s 10-year business plan forecasts rate rises from 2026-27 to 2035-36, including a proposed increase in rates revenue in 2026-27 by 4.58 per cent to about $125.6 million, to help pay for it.

The council was scheduled at the Tuesday, May 26 meeting to consider advertising the rates increase for comment and adopting the revised business plan.

Both proposals were supported by the city’s corporate and community development committee last week.

The business plan includes nearly $135m in loans to pay for projects such as the Aqua Jetty, Safety Bay foreshore community facility, and Rockingham aquatic centre redevelopment.

Since the business plan was last reviewed in December, costs have risen by about $190m. This includes a $22m increase in the cost of the Aqua Jetty redevelopment, and a $79m increase in recurring expenses over its 10 years.

“Significant increases are being experienced in construction and maintenance costs, which are concerning,” a council report said.

“Uncertainty remains with civil work costs given global economic conditions.”

Mayor Lorna Buchan said the plan followed previous directions and maintained services despite significant increases in costs.

“This is the best guess, best estimate that the city have come up with for the next 10 years to make sure that we can provide all our services and planned infrastructure going forward,” she said.

“I do appreciate how difficult it is to estimate costs in this fluctuating global economic conditions we find ourselves in.

“Just to stand still, we’re going to have to borrow more, and we’ve actually forecast rate increases over those 10 years of 4.92 per cent in years one to three, and 3.5 per cent in years four to 10.

“We’re actually looking to advertise a rate increase of 4.6, so already we’re trying very hard to bring down those rate increases.

“We understand that times are tough. However, there is an expectation that the city provides services and they provide infrastructure . . . we’ve got to pay for it somehow.”

The council report warned the city continued to experience challenges recruiting contractors and staff, and revenue from the Millar Road Landfill could soon stop.

“Alternate waste treatments do not attract State landfill levy, and revenue is going to decrease significantly once these facilities are operating,” it said.

“This has been known for some time and adjustments have been made. If this happens sooner rather than later, rate increases or alternate revenues would need to be found to cover the loss in income or reduce the program of construction of infrastructure delivery.”

Cr Mark Jones said the difficult economy had led to the “massive increases” but he commended the city for holding its proposed rates increase close to the consumer price index.

Cr Mike Crichton said the city had found the right balance between providing new facilities for areas which were experiencing significant growth and maintaining existing ones.

Individual property owners will see different changes to their rates bills thanks to new valuations this year.

The council report said some valuations had decreased by more than 40 per cent, while others had increased by more than 100 per cent.

CEO Michael Parker said this meant changes to rates bills would not be consistent across the city.

“My property might have gone up, others have gone down . . . but overall the additional rate revenue we’ll be generating is 4.6 per cent as proposed,” he said.

A review of the 2025-26 budget forecast it would close with a $43m surplus, about $40m of which has been committed to projects in future financial years.

Ms Buchan said the remaining surplus was the smallest she could recall in the past six years, but she still said it was a “good job”.

“I do appreciate that everybody is really running their budgets to the very limit on where they think they can . . . make some savings,” she said.

“It’d be very difficult to make a surplus of $2.7m on a turnover of over $200m. That is huge”.

Acting corporate services director Michael Yakas said the city had been due to take out more loans in this financial year but opted not to do so and instead pay some loans down.