23 May 2018

Date:

23 May 2018, 11:00 am

Categories:

Media Enquiries

Media: Rotorua Daily Post

Topic: Ngati Whakaue Education Endowment Trust Board lands rating issue

Enquiry

The reporter sought a response to Council in regards to the Court of Appeal's decision regarding the rating issue to do with Ngati Whakaue Education Endowment Trust Board lands.

Questions:

1. Why did the council change the way it rated the NWEE Trust Board lands in 2014?

2. How much more money did the council collect in rates by not discounting the 94 properties by 10 per cent each year since 2014?

3. Will the council have to pay that money back to those businesses?

4. Why did the council appeal the High Court's ruling of October 2016?

5. How much has the council spent on its own legal fees since the issue arose in 2014?

6. The Court of Appeal has ruled the council must pay NWEE Trust Board 's costs. How much is this expected to be?

7. Ratepayers could end up paying a lot of money as a result of this court action. Does the council stand by its actions? Why?

8. How will legal costs, court awarded costs to NWEE Trust Board and potentially any repayments to the 94 businesses be paid for?

9. Does the council intend to take the matter to the Supreme Court?

Response

From Rotorua Lakes Council Chief Financial Officer Thomas Coll:

The Ngati Whakaue Education Endowment Trust Board had been receiving a 10 per cent rating valuation discount on the understanding its CBD land was Maori freehold land.

When it was realised it was not Maori freehold land, Council stopped discounting the valuations on the trust properties on the basis of fairness for all ratepayers, because Council considered that as these are commercial properties able to attract market rentals, they should be treated the same as other commercial properties.

The Trust lodged an objection with the Land Valuation Tribunal which ruled against the trust. It then appealed to the High Court which ruled the trust should receive a discount although it did not specify what that discount should be.

The Valuer General disagreed with the High Court finding and supported Council to take the matter to the Court of Appeal, which has subsequently upheld the High Court decision.

Any costs and repayments to be made are yet to be determined between the parties.

The Valuer General is covering the cost of taking the matter to the Court of Appeal. We have not yet tallied the total cost to Council as the matter hasn't yet been fully resolved.

At this time there is no intention to take the matter further.

From Chief Executive Geoff Williams:

In making any decision to take legal action there is a balance between the cost of doing so versus the cost of accepting what is considered to be an adverse situation for Council and therefore for our ratepayers. This case was based on what the organisation considered was fair and equitable for all ratepayers.

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Media: Rotorua Daily Post

Topic: Bay of Plenty Regional Council charges for landfill leachate

Enquiry

The reporter sought comment from Council in regards to the regional council laying six charges against the Rotorua Lakes Council for discharging contaminants into two streams from the Rotorua landfill. The charges relate to alleged breaches in March and April last year.

Can the council please respond to the following questions?

Where is the court action at?
Is the council defending the charges?
How much money has been spent so far on court action relating to these charges?
Has the council ever been fined before for similar breaches?
Why are the breaches happening?
Does the council still use the Rotorua landfill? If not, is this the reason? (Is it full?)
How does the council intend to stop similar breaches in future?