By Belinda Nolan
BRIMBANK Council spends $400,000 each year taking struggling residents to court over unpaid rates.
The council is currently owed more than $4 million in outstanding rates and charges, with some debts dating back as far back as 15 years ago.
Around 2300 property owners owe the council a balance of $4.2 million for debts over a $100 but only 1400 are on a payment plan.
So far, only 56 per cent of rates owed for the 2009/2010 year have been collected.
In the past year, the council has issued 530 summons in a bid to recover unpaid rates in court.
The number is slightly lower compared to the previous financial year, which saw 540 summons issued. Doris Cunningham, the council’s General Manager of Corporate Services, was unable to provide figures on how much money had been recovered in court but said the council aimed to recoup at least 50 per cent of debts each year.
She said court action was a “worst case scenario”.
Although the council spent hundreds of thousands of dollars on debt recovery, 100 per cent of costs were borne by residents, who were ordered to foot the council’s legal bills, Ms Cunningham said.
The most common reason cited for non-payment was financial difficulties.
Ms Cunningham said unpaid rates affected the council’s cash flow and could limit the number of community projects funded. She said the council was committed to recovering rates through a number of means.
“Council continues to pursue outstanding rates and charges and we have a substantial number of property owners on repayment programs,” Ms Cunningham said.
She said there were plans in place to help residents meet their rate obligations.
“Anytime a ratepayer is having difficulty meeting instalment payments it is imperative that they contact council to discuss a repayment option.
“Council has fortnightly or monthly direct debit facilities available to assist the property owner.”
Anyone experiencing difficulty in paying their rates can contact the council on 9249 4000.
