By Vanessa Chircop
HOBSONS Bay City Council has spent more than $100,000 pursuing unpaid rates from residents and businesses in the 2010-2011 financial year.
Director Business and Finance Glenn O’Sullivan said despite the legal costs being charged to the property, nobody wins if rates are not paid.
“Rates form a large part of the council’s revenue,” he said.
“This revenue is used to provide services and essential amenities to the people of Hobsons Bay.”
At the end of last year the council was owed a whopping $3.214 million in unpaid rates.
“This represents 1842 individual ratepayers, of which approximately 47 per cent are residential,” Mr O’Sullivan said.
“The council offers payment plans and hardship provisions to qualifying residents who may not be able to pay their rates.
“There are presently 43 people on the council’s hardship register.”
Mr O’Sullivan said if rates are unpaid, payments only become more difficult over time.
“The cash flow implications of non-payment adversely affects the council’s ability to deliver budgeted works and services to the community.”
Mr O’Sullivan said a number of processes occur before taking the ratepayer to court including writing to the ratepayer, issuing a final notice, making phone calls, managing payment plans, administering debt control and then taking legal action where necessary.
“When the property is sold, the council will recoup all of its costs and money owed,” he said.
“These charges will appear in the sale of contract for the property so new owners are aware of the outstanding charges.
“Legal action is a last resort for the council but ensures that any money owed is inevitably collected.”
