Rates defence cost $1.7m says council

Kaipara District Council has spent $1,726,891 on legal fees to recover rates owed – and defend itself against – the challenges brought by Bruce and Heather Rogan and the Mangawhai Residents and Ratepayers Association.

Kaipara District Council has compiled the costs it has incurred over a number of years and is now keen to make the information available to the community.

The MRRA and Rogans brought six challenges against the Council over a period of six years.

Until October 12, 2019 the Council defended its case under the direction of the Crown Manager, who remained in place to oversee ongoing legal action against the Council.

The Council has since defended further action brought by the Rogans, with final ruling in favour of the Council in February this year.

Kaipara mayor Dr Jason Smith says complaints that the Council had pursued the Rogans were inaccurate. Instead, the Council had to defend itself against the challenges brought against it to be fair to the vast majority of ratepayers who had paid their rates in full.

He says the Council has to give ratepayers confidence that everyone pays their share of rates.

“It’s disappointing that this has gone on for so long and has cost ratepayers so much,” says Mayor Smith. “Mr and Mrs Rogan could have stopped after a change in law legitimised the Council’s position, or after the office of the Auditor General published a detailed report on events surrounding the wastewater scheme decisions. They could have stopped at any time. Instead the Rogans chose to continue pursuing the Council as far as the Courts would allow.”

The challenge brought by Mr and Mrs Rogan was ultimately unsuccessful. The Council sought, and was awarded, costs by the Supreme Court.

“We believe we had a responsibility to recover whatever costs we could on behalf of ratepayers. The costs awarded by the court don’t cover the Council’s defence costs but it goes a small way towards it.”

The Council is satisfied Mr and Mrs Rogan had now paid their rates in full, and is continuing to seek rates payments from two remaining Mangawhai landowners who are continuing their protest in relation to the wastewater scheme.

“Thankfully the issue relating to the Rogans is now closed, however, the Council will continue to incur costs until other outstanding rates are paid,” says mayor Smith.

“We believe we had a responsibility to recover whatever costs we could on behalf of ratepayers.”