Significant litigation costs fall to ratepayer

 

The financial year for the Kaipara District Council comes to a close at the end of this month. In a financial sense Commissioners expect: „ A sound operating result, with a small surplus being generated for the second year in succession. Expenditure is being tightly controlled. The years of substantial losses are behind us. „ Debt levels to be on forecast, ending the year at close to $77 million, as steady progress on the debt reduction programme is made. „ Cash inflows from rates to be short by several million dollars, this being the result of the Mangawhai Ratepayers and Residents Association (MRRA) campaign to encourage people not to pay rates. „ Capital expenditure on roads will be lower than forecast, as Commissioners have postponed work to offset the effect of rates being withheld.

In an operating sense, the year has been a busy one for Commis-sioners and Council’s senior management team as matters from past years were focused on. „ The Auditor General reported her findings on the Mangawhai Community Wastewater Scheme. Council was found wanting in many areas. „ Parliamentarians from all sides of the House supported Kaipara by hearing submissions on the Validation Bill in Maungaturoto and, passing it into law with little amendment or dissension. „ A Judicial Review was heard, resulting in a decision by the Court that confirmed that all of the previous rating irregularities had been validated with the passing of the Kaipara District Council (Validation of Rates and Other Matters) Act 2013 and that Council did not breach the Bill of Rights in promoting the original Bill. This aspect of the decision makes it clear that all rates are valid and payable.

Where to now on the Judicial Review?
Commissioners are keen to see the end of litigation and will not be appealing the deci-sion. We have urged the MRRA to take the same position, and have met with their executive to invite them to move forward in the spirit of partnership.

What have been the costs of the litigation and dealing with the other errors from the past?
Legal, research and management costs, all relating to matters aris-ing from past years of a poorly performing Council have created signifi-cant additional costs for ratepayers. The Auditor General’s inquiry funded by the taxpayer cost some $1 million. Parlia-ment’s costs funded by the taxpayer will likely have been in excess of $200,000. Council’s legal and other costs relating to the Auditor General’s inquiry, the Bill, and the Judicial Review have cost ratepayers a further $1 million.

The provisional view of the Court to award indemnity costs to MRRA will, if finally determined, impose a further cost on ratepayers, above the $1 million estimated above.

What does the decision of the Court mean for property owners in Kaipara?
The Court’s judgment has made it crystal clear that rates are valid and payable.

For those who have withheld their rates on the advice of MRRA and others, the decision will cause you to review your position. You should pay your rates, and pay them by 30 June if you wish to reduce your exposure to penalties.

Mangawhai appointments
I will be in Mangawhai on Monday morning, 30 June. If you wish to meet with me to discuss rates, the state of the Council, or any other matters, please call Anna Curnow on 09 439 3123 to make an appointment.

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