UPDATE: The City of Bunbury council voted in favour of a 4.5 per cent property rate yield rise for the 2017/18 financial year at Tuesday night’s meeting.
Despite rejection from Mayor Gary Brennan for the executive recommendation to raise the rates by that amount, the proposed motion was passed six votes to five.
"Our community can't afford a 4.5 per cent rate rise in my view," Mayor Brennan said.
Councillor Betty McCleary led the debate for a 4.5 per cent increase, calling on councillors to be fiscally responsible and not deviate from the amount used to construct the Integrated Financial Plan.
Councillors Michelle Steck and Jaysen De San Miguel both voted against the increase, proposing instead a more moderate three per cent increase.
With council's approval of the rate rise, the increase will now be advertised for community and ratepayer information prior to adopting the 2017/18 annual budget in late July.
The City of Bunbury also increased rates by 4.5 per cent in the 2016/17 financial year.
EARLIER: The City of Bunbury have been recommended a 4.5 per cent property rate yield increase for the 2017/18 financial year.
Tuesday night’s council agenda recommended the proposed 4.5 per cent increase as the figure used to create the recently adopted 15 year Integrated Financial Plan (IFP), and stated that any amendment would require adjustment to the draft budget.
Councillors recently held two budget workshops to consider the draft budget and a proposed rate increase of 4.5 per cent, which includes one per cent to be used specifically for infrastructure development.
Recommendations prepared for the council by acting chief executive officer Mal Osborne and finance manager David Ransom noted an increase of 4.5 per cent was considered necessary to meet the operating and capital expenditure in the draft 2017/18 budget.
The pair noted that should council decide against the 4.5 per cent increase, a lower rate increase could be considered but would significantly impact the IFP.
An increase of four per cent would have a $2.9 million effect on the IFP in 15 years while a three per cent increase in 2017/18 would have a flow on effect in excess of $8.8 million.
Once council decide how much rates will increase by, the amount will be publicly advertised over a three week period.
Council will officially vote on the proposed increase at a meeting on Tuesday, June 27.