THE City of Wanneroo, which is starting the new financial year with an estimated $2 million operating deficit, has raised rates by an overall 8.4 per cent.
At a special council meeting on July 7 councillors eventually voted 8-5 for the Budget, which outlines overall rates are expected to raise $189.3m for the city in 2026-27.
The Budget also projects a drawdown of $147m on reserves, including $70m for capital works funding (this includes $6m for the Alkimos Aquatic Recreation Centre and $9m for the Girrawheen Hub precinct redevelopment) and $61m to repay the “city’s longstanding loan”.
The 8.4 per cent overall rate increase includes an average 6 per cent increase for most residential ratepayers and 13 per cent for unimproved valuation properties.
According to the city’s adoption of the 2026-27 Budget report, presented to the council on July 7, the 6 per cent increase will equate to less than $2 a week for the average residential ratepayer.
Along with the $189.3m in rates, in 2026-27, the city has budgeted for fees and charges to bring in revenue of $65.3m (up 12.2 per cent), grants, subsidies and contributions $14.1m (up 67.9 per cent), interest revenue $18m (a fall of 22.2 per cent) and other revenue $3.5m (a fall of 6.2 per cent).
In the report the city acknowledged concerns the proposed rate increase was above CPI but also said the city’s operating costs were projected to increase by 6.9 per cent.
“The four biggest contributors to operating costs are employee costs (40 per cent of operating costs), materials and contracts (36 per cent), depreciation (19 per cent), and utility charges (4 per cent),’’ the report said.
“Employee costs are projected to increase 14.2 per cent compared to the 2025-26 Budget, which factored in a 12 per cent employee vacancy rate.
“Actual experience in 2025-26 has demonstrated higher than projected employee costs by 6.3 per cent.’’
Materials and contracts are projected to increase by 3.0 per cent compared to the city’s 2025-26 budget.
“CPI forecasts have fluctuated considerably over the period that the budget has been considered, with the annual increase in Perth CPI being 4.6 per cent to March 2026,’’ the report said.
“While this is expected to moderate somewhat to 3.75 per cent in 2026-27 the city may expect to experience the flow on effects of high 2025-26 inflation growth on 2026-27 costs.
“There is still some uncertainty evident, for example pending the impact of fuel supply issues on various of the city’s costs, whether through direct fuel consumption or supplier services that are impacted by the cost of fuel.’’
The top six major projects in the proposed capital works program for the 2026-27 financial year are the Alkimos Aquatic and Recreation Centre ($12.5m with the city saying $6m of that will come from reserves), Neerabup Industrial Area development ($10.5m – with $10m of that a loan), Girrawheen Hub precinct redevelopment ($10m with $9m to come from reserves), Flynn Dr, Neerbaup upgrade from Wanneroo Rd to Old Yanchep Rd ($7.5m), new-renewal-upgrades to waste vehicles, plant and equipment ($6.6m with all of that to come from reserves) and a Yanchep Lagoon precinct upgrade ($3.5m with all of that to come from reserves).
The next six major projects included in the proposed capital works program for the 2026-27 financial year are the renewal of transport infrastructure assets ($3.5m), Carramar Golf Course upgrade ($3m with $2.5m of that a loan) Marangaroo Golf Course ($3m with $2.5m of that a loan), Driver Rd, Darch new public open space ($2.8m with all that to come form reserves), renewal of park assets ($2.8m with all of that to come from reserves) and the Two Rocks beach (south) accessway ($2.8m).
The report said in line with the city’s financial (cash-backed) reserves policy, reserves had been prudently utilised in line with their adopted purposes to smooth the impact of major works in any given year.
“A drawdown of $147m on reserves is projected, notably including $70m in capital works funding and $61m in the repayment of the city’s longstanding loan,’’ the report said.
“Reserves will be replenished by $73m with key contributors including reserve interest, distributions from Tamala Park and development contributions.”
