Published on Tuesday, 4 August 2026 at 11:34:07 AM
Council adopted the 2026-27 Budget today, concluding a rigorous budget development process centred on balancing community expectations, financial sustainability and long-term investment in Shire services, projects and infrastructure. Acknowledging the significant cost of living pressures facing households and businesses, Councillors and staff worked together over many months to make sure every ratepayer dollar delivers maximum value.
Shire President Ron Chambers said it’s been a difficult budgeting year.
"No Councillor wants to increase rates, so this year's Budget process involved some tough conversations”, he said. “We looked closely at every area of spending and challenged ourselves to find savings wherever possible. Working with staff, we achieved reductions in some areas but rising costs for fuel, materials, wages and contracted services continue to impact councils across the state.”
“Despite our efforts to limit the increase, an unexpected reduction in federal government Financial Assistance Grants (FAG), as well as the rising costs, has resulted in a 1.5% increase above our Long Term Financial Plan forecasts”, Ron continued. “The proposed reduction in FAG funding alone carries approximately the same value as 1% of Rates.”
“After careful consideration, Council decided to adopt a 6% Rate increase to maintain services, facilities and programs to the level our community expects.”
“While we have budgeted for a small deficit, Council is focused on reducing this through further targeted savings, careful project planning and disciplined financial management."
The 6% Rate increase applies to both Gross Rental Value (GRV) and Unimproved Value (UV) properties, and is expected to add approximately $150 per year to the rates bill of an average residential property.
With these pressures in mind, Council also took steps to manage the financial impact of several vital infrastructure projects planned for the coming years. Approximately $2.5 million per year currently allocated from Shire funds for road upgrade projects will be redirected towards projects such as the Myrup Waste Transfer Station, the James Street Cultural Precinct and important Airport upgrades. This approach will help ensure these projects can be delivered while reducing pressure on rates over the next three years.
The 2026-27 Budget continues to fund the broad range of services delivered by the Shire, including:
- road upgrades and maintenance,
- waste management,
- community facilities,
- library and recreation services,
- visitor information and services,
- economic development,
- environmental management and
- public health.
While local governments are often the most visible level of government in people's daily lives, they receive only a small share of total State and Federal taxation revenue and must fund most services, assets and infrastructure through rates, user fees and carefully targeted grants.
Major 2026-27 budget allocations include:
- $11,200,000 - Myrup Waste Management Facility
- $2,500,000 - James Street Colocation Cultural Hub Project Stage 1a
- $691,500 - Building maintenance program
- $18,821,000 - Road upgrades and improvements
President Chambers said the Budget highlights the unique responsibilities of providing the broad range of facilities and services expected by the community while managing rising costs and constrained government funding.
“Regional communities face challenges that are very different from those experienced in metropolitan areas. As an isolated local government, we can't leverage the facilities of neighbouring cities or regional centres the way our metro counterparts can. When the nearest major sporting, cultural and recreation facilities are hundreds of kilometres away, we must provide those opportunities here in Esperance for our residents.”
"Building and maintaining community infrastructure comes at a significant cost, and these facilities are not designed to make a profit. They exist because they are essential to community wellbeing, participation and quality of life.”
“Despite external rising costs and reduced government funding support, Council has been able to hold the total GRV rate to below CPI since 2020. That is a significant achievement and reflects Council's commitment to delivering value for ratepayers while continuing to invest in the future of our community."
CEO Shane Burge said the Budget reflects the importance of disciplined long-term planning.
"The Shire manages a substantial portfolio of assets, infrastructure and services across one of Western Australia's largest local government areas”, he said. “In recent years we have seen significant increases in costs across many areas of our operations, including fuel, compliance requirements, materials and employment. At one point this year, diesel prices were almost double what they had been just a few months earlier, highlighting the volatility local governments must plan for."
"Despite these pressures, this Budget enables us to continue delivering the services our community relies on every day while maintaining important community assets and progressing critical infrastructure projects. Our community have consistently told us they want roads maintained, facilities cared for and strategic projects advanced - this Budget responds directly to those priorities."
"Every dollar in this Budget has been carefully considered and aligned with the Council Plan, the Long Term Financial Plan and the aspirations identified by our community. Strong financial planning allows us to meet today's needs while preparing for tomorrow's opportunities, ensuring Esperance remains well positioned for future growth and able to meet the needs of our community for years to come."
The Rate in the dollar for the 2026/27 Budget was adjusted to deliver an overall 6% increase in rates revenue across the district. This is not a Gross Rental Value (GRV) revaluation year, so the property valuations used to calculate GRV rates have not changed. Property valuations are independently determined by the State Valuer General, not the Shire. GRV properties are generally revalued every five years, while Unimproved Value (UV) properties are revalued annually. As rates are based on both the property valuation and the rate in the dollar, changes in annual UV valuations may result in some properties experiencing larger or smaller rate changes than others.
The Emergency Services Levy (ESL) has increased by 4.6%. The ESL is a State Government levy that helps fund the Department of Fire and Emergency Services and emergency service operations across Western Australia. While the Levy appears on Shire rates notices for both GRV and UV properties, Council does not set this or determine the amount charged. The Shire's role is limited to collecting the Levy on behalf of the State Government and passing those funds on to the relevant authority.
The full 2026-27 Budget, with in-depth information detailing matters such as rates in the dollar and funds available for every area in the Shire for the financial year ahead, may be found on the Shire’s website.
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