Councils rake in the money
WA's 30 metropolitan councils are sitting on a cash pile of nearly $1.6 billion - nearly double that of five years ago.
Analysis by _The Weekend West _of local government annual reports reveals city councils' holdings of cash and short-term investments have increased from $827 million on June 30, 2009, to $1.549 billion on June 30, 2014, or 87 per cent.
Over the same period, the amount of rates collected has grown from $821 million in 2008-09 to $1.193 billion in 2013-14.
That is an increase of 45 per cent. The rate of inflation plus population growth over the same five-year period is 30 per cent.
About two-thirds of councils have increased their cash holdings more than the rate of inflation plus population growth.
Five councils (Canning, East Fremantle, Kalamunda, Mosman Park and Nedlands) have less cash than they did five years ago.
Five councils (Mundaring, Joondalup, Perth, Subiaco and Vincent) have had their cash grow by less than the rate of inflation plus population growth.
WA Local Government Association president and Joondalup mayor Troy Pickard said there were "several justifiable reasons" why councils' cash reserves had risen so sharply.
He said inflation was not a "relevant or accurate measure" for evaluating rate increases because councils had faced big increases in operational expenses, including for salaries, constructions and street lighting.
"Since the 2008-09 financial year, average adult earnings have increased 30 per cent," Mr Pickard said.
"A useful and more relevant comparison is with State Government taxation, which has increased by 60 per cent since 2008-09 from $5.5 billion to $8.8 billion.
"Local governments require cash in reserve to pay for planned community projects and the maintenance and replacement of vital community infrastructure.
"Many of these projects are planned several years in advance and cost millions, if not tens of millions of dollars, which cannot be funded in one financial year."
Opposition Leader Mark McGowan said steep increases in rates each year had to stop.
"At the last election I offered a solution to this problem by planning for a cap to be introduced on rates that would be set by the ERA, similar to what is done in other States," he said.
"This would have fixed this problem."
