Shire of Derby-West Kimberley signs off on draft budget as costs continue to rise

The Shire of Derby-West Kimberley has adopted its 2026-27 budget, including a 6.1 per cent increase in rate revenue, saying the rise is needed to keep pace with rising costs while maintaining services.

The budget was passed unanimously at the June 25 council meeting, with all recommendations carried 7-0.

The budget forecasts $20.1 million in operating revenue, $35m in operating expenditure, $20.1m in capital spending and $18m in capital revenue.

Shire president Peter McCumstie said the budget reflected months of planning and would allow the local government to continue delivering services despite mounting financial pressures.

Council papers show the 6.1pc increase in rate revenue will account for the shire’s full operating income for the 2026-27 financial year.

The budget factors in a 4.6 per cent increase in wages under enterprise bargaining agreements, the rise in the compulsory superannuation guarantee to 12 per cent, a 4.6 per cent increase in utility costs and a 10 per cent rise in insurance premiums.

The council also approved rates payment dates, a $5000 incentive prize draw for ratepayers who pay in full by early August, and confirmed interest and administration charges for ratepayers who chose instalment payment plans or alternative payment arrangements.

Councillors endorsed the shire’s fees and charges schedule, including waste collection charges, cemetery fees and a $78 private swimming pool inspection fee.

They also voted to retain the minimum council member fees and allowances set by the State Salaries and Allowances Tribunal.

The budget includes a $20m capital works program, headlined by a $10m allocation for the Fitzroy Crossing Hall, $1.8m for replacement lighting at Nicholson Oval, $1.56m for Fairbairn Street Blackspot Stage 2, and upgrades to roads and the Derby Civic Centre.

Despite describing the budget as balanced and fiscally responsible, council papers warn the shire’s ageing infrastructure will continue to deteriorate without additional funding from the State and Federal governments.

“Without additional injections of funds (including from State and Federal governments), (the shire’s assets) will continue to deteriorate more quickly than they can be maintained,” the budget report states.

The council also approved the creation of two new cash reserves to fund emergency works following natural disasters and future information technology needs.