A surprise take away from the CGG CEO's statements following tonight's budget announcement:

“During the next twelve months we will be seeking to reduce the number of Councillors from 15 to nine and will need to find a further $1 million in savings, just to limit future increases to 5.2%.”

Full press release follows.

City of Greater Geraldton CEO, Ken Diehm, said this year’s budget is one of the tightest budgets the City has had to ever bring in.

Two years ago the City was looking to increase rates by 7.6% per annum. Since that time the City has re-worked its financial planning and identified annual rate increases of 5.2% to continue to provide the current level and range of services and renew ageing infrastructure before it begins to fail.

“Last year we were able to limit rate increases to 2.25% and over the last twelve months the City has been working with Community Panels to identify capital works priorities and desired service levels,” said Mr Diehm.

“This work, coupled with internal efficiency gains, has enabled the City to further reduce the projected rate increases.”

Residential rates will now increase by 4.3%, a reduction of 0.9%, and non-residential rates will increase by only 3.6%, a reduction of 1.6% from the advertised proposed rate.

The increase in rates for an average residential property will be $1.27 per week. Mr Diehm said this has been a tough budget.

“State and Federal government funding has been reduced by $3 million and we have been hit by spiralling water and electricity costs.

“Wages have increased by only 2.6%. This is a combination of a 4% increase in the award, a 0.25% increase in compulsory Super contributions, a reduction in management positions, and more staff time allocated to capital works,” he said.

“Materials and contractors have increased by 2.8%. After eliminating the impacts of the additional Airport security costs of $695,000, there has actually been a reduction in materials and contract expenses of 0.4%.

“The City has tightened its belt and efficiency gains and cost savings of approximately $652,000 have been achieved during the 2013/14 financial year and incorporated into the 14/15 budget.

“These savings have been used to finance a higher level of asset maintenance and to fund new initiatives identified by the Community Panels and the business community,” said Mr Diehm.

“The City’s belt tightening doesn’t stop with this budget.

“During the next twelve months we will be seeking to reduce the number of Councillors from 15 to nine and will need to find a further $1 million in savings, just to limit future increases to 5.2%.”