Nod to rates hike

City of Mandurah chief executive Mark Newman believes the 4 per cent rate increase is necessary to deliver $50 million in projects for residents.

Mandurah City Council approved a rate increase of 4 per cent at last week’s council meeting, despite cost of living pressures.

Chief executive Mark Newman said about 1.5 per cent of the proposed rate increase was compensation for the $900,000 in lost fees from the closure of the pools at the Mandurah Aquatic and Recreation Centre.

He said the 2014-15 budget was $150 million, of which $53.42 million was earmarked for capital expenditure.

The MARC redevelopment claimed $30 million, while the eastern foreshore sea wall redevelopment was almost $2.75 million.

Of the projects’ funds, $20.5 million was from State and Federal Government grants, and $3.48 million was contributed.

In addition, almost $30 million had to be sourced by the City to cover costs.

Mr Newman said the rate increase could possibly have been less, but it would have meant axing services or projects that residents wanted.

He said the minimum rate was $945 but the average was $1000.

Mr Newman said the Federal Budget was tough to take, but believed the community was yet to feel the knock-on effect of the Federal and State Budgets.

He said this was the reason his team worked hard to keep rates as low as possible.