Council to review draft report

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The Council will now review the sections of the draft report that it has received and respond to the Auditor General. Given the requirements of confidentiality placed on the Council, if you have further questions relating to the progress of this report, you should contact the OAG. 
We look forward to the completion of the Auditor General’s inquiry into this scheme, the discovery of what went wrong, and where culpability might fall.

The other significant matter from the past that we are attending to relates to rating setting errors. The Bill that is entering Parliament is designed to deal with these matters.
 
Will the Bill prevent Council from taking action against any person or organisation if fault is found by the OAG with respect to past actions to do with the Mangawhai Wastewater Scheme?
No. The Bill will not affect Council’s right to bring proceedings. In fact it has a specific clause (Clause 14) to put this beyond doubt.

What level of rates and development contributions are affected by the irregularities?
In total some $17.3 million of rates were involved with the specific targeted rates that were set in an irregular manner.
Council has also collected approximately $1.5 million of development contributions for the Mangawhai wastewater scheme.

Why are you seeking to validate these actions via a Local Bill?
The Commissioners considered a number of options for addressing the historical rating irregularities including the use of the rates replacement process provided for in the Local Government (Rating) Act 2002. This process is extremely complex and Commissioners were of the view that it would not be practical given the range of issues affecting Council. The use of a Local Bill is seen as the only practical option.

Why have you said that the 2012 LTP and 2012/13 rates are valid if they are included in the Bill?
The advice that the Commissioners have received is that despite the irregularities with the consultation process and late adoption of the 2012 LTP, it remains valid. The validation of these documents has been included in the Local Bill to remove any doubt about their validity, nevertheless.

Will the Bill, if passed into law, mean that ratepayers, who are current with their rates, be charged additional rates?
No. Most ratepayers are current with their rates. The Bill will not create any new obligations. Commissioners are looking to address any future obligations through Council’s Annual Plan and Long Term Plan processes.

Are penalties being applied to those who are not paying their rates?
Yes. Property owners need to pay their rates, and as is the case with other Councils, late payment of rates incurs a penalty. 

Has Parliament ever validated the errors of other Councils through Bills like this?
Yes, on many occasions.