6 August 2021
Media: Rotorua Daily Post
Topic: Unpaid rates
Enquiry
*NOTES: This is a follow up enquiry. See original enquiry from 23 July HERE
I am still working on the story on unpaid rates, and would like to add a few questions:
What are the standard procedures the council takes to claim unpaid rates?
Why does the council think unpaid rates figures have doubled for the last three years? ($4.6m in 2021 vs 2.3m in 2018 respectively)
When does the current outstanding rates bill of $103,760.76 date back to?
Could I also please clarify if the figures for unpaid rates below included those that were charged on Maori land?
Subsequent from reporter:
I have received some criticism regarding the unpaid rates data that I wanted to run past you for a response.
Could you please kindly let me know if a 4pm deadline will be possible? I have put all the questions from yesterday too in this email so it's easier just to respond to one.
Criticism:
“This data shows local ratepayers are finding it tough. Rotorua households and businesses, particularly those devastated by COVID’s impact on tourism, are having to cut back.”
“But instead of cutting the cloth to match, Rotorua Lakes Council is hiking rates by an incredible 9.2%. Unlike other taxes, rates aren’t tied to income or the ability to pay. That means it hammers those who fall on tough times, or are retired.”
“This should be a wakeup call to local councillors. Cut the nice-to-haves until the pandemic is over and tourism returns to normal.”
Subsequent from reporter:
Some additional criticism just came through which I would like to run past you for a response:
"You’ve got a council who has just put an exorbitant rate increase in.”
“[The 9% rate increase is] just totally unnecessary. They’re just inept in my view trying to put rates up at this time with the Covid crisis and everything.”
“It’s going to react very severely on a lot of people.”
Response
The reporter was advised that there was no comment from the council organisation regarding the personal views expressed in the unattributed quotes they sent.
Reporter was provided with the following information regarding process + information about what is included in the figures that were provided previously, to provide additional context to those figures:
Council encourages people to make contact if there are issues relating to rates payments so that their situation can be assessed, options can be discussed and arrangements agreed.
Some ratepayers may meet the criteria for a rebate through the Government’s rates rebate scheme. People can make appointments via our Customer Centre to see if this is an option for them.
If no contact and no arrangements have been made with the council and rates become overdue penalties do apply. If rates continue to be unpaid with no arrangements made regarding payment, the process becomes more formal eg through a debt collection agency or mortgagee demand. Court proceedings are a very last resort.
Regarding the totals you have been provided for each year:
- Unpaid rates charged by BOP Regional Council (which RLC collects on the regional council’s behalf) are included in the totals you have been provided.
- There are still some rates deferments that were approved as part of assistance offered following the COVID-19 lockdown included in the figure for 2021.
- With regard to the highest individual amount due on a property ($103,761), this debt has been accumulating since 2013. The amounts due on this property as at June each year are included in the figures provided.
- The figures also include any penalties incurred on unpaid amounts.
- Yes, the figures include unpaid rates that apply to Maori land.