In this the final instalment of the Auckland council rates investigation we explore delegation.
The Local Government (Rating) Act 2002 states
132 Delegation
(1) A local authority may delegate the exercise of functions, powers, or duties conferred by this Act on the local authority to—
(a) its chief executive officer; or
(b) any other specified officer of the local authority.
Now lets look at the annual plan again, it states
Delegation of decision-making
Decisions relating to applying the rates under the rates related policies will be made by council officers.
The question we need to explorer here is whether “council officers.” is the same as specified as required by the act. .
There appears to be no definition for Council officer in any legislation
Is the lady on the front desk there is a receptionist, she is a council officer , the guy who overseas the council car park he is a council officer , I guess you could say that any council employee is a council officer.
Further the annual plan states that it is “Decisions relating to applying the rate” that is delegated to “Council officers ” but the act is specific that Council cannot delegate the power to delegate . So without a specific person being handed the responsibility the delegation is left rather wide open . There is only one thing for certain and that is that the responsibility still rests with the governing body .
The slack wording of the annual plan and the lack of specificness brings about the question whether or not the penalty regime set by council is even legal in the remotest sense.
But wait there is more
The rates assessment is sent out at the beginning of the financial year and is a document which is produced to comply with section sets out the details as required by legislation , in this case section 45
So we have gone back to the rates assessment notice that we have before us and start ticking off the requirements as set out by the legislation.
Item
(k) the total amount of rates payable on the rating unit for the financial year:
we have already seen that the total amount payable is $4510.81 .
But if the payment is made by instalments and each instalment is one day late then the amount paid by the end of the financial year ( paid up by 28 May 2015 when due date is 30 June 2015 ) will be $4961.61 , an extra $450.81 under the councils penalty scheme which is not supported by legislation .
On top of that the $450.81 includes a total of $58.80 penalties on GST
(l) whether or not the local authority has a remission policy, a postponement policy, or a rates relief policy for Māori freehold land and, if so, a brief description of the criteria for rates relief under each policy:
There is nothing on our notice which refers to this at all .
(l) whether or not the local authority has a remission policy, a postponement policy, or a rates relief policy for Māori freehold land and, if so, a brief description of the criteria for rates relief under each policy:
There is nothing on the rates assessment notice which states when the rates must be paid by , the installment dates are given but there is no indication that the payments must be made by those dates it simply states ” amount payable by “.
(n) if applicable,—
(i) the penalty regime of the local authority; and
(ii) a warning that, if rates are not paid on time, a penalty may be added under that regime:
There is nothing on the rates assessment notice with regards to penalty regimes and there are no warnings with regards to failing to pay by any due date .
(o) if an early payment of rates has been made in accordance with a policy adopted under section 56(1),—
(i) the rates paid and any balance remaining to be paid; and
(ii) the amount of any discount allowed for the early payment of the rates; and
(iii) any credit balance remaining after payment of all rates due, adjusted for any discount allowed:
None of the above are shown on the rates assessment notice .
(p) the right of ratepayers to—
(i) inspect the rating information database and rates records; and
(ii) object to any of the information included in the rating information database and rates records.
There is no mention of these details either .
The Rates assessment notice which we have before us does not comply with the legislation Contents of rates assessment.
Perhaps the council should tidy up its act with regard to rates
- Have penalties which are fair and reasonable based on the ever increasing value and ever rising rates of our homes
- Have a rates penalty regime which makes sense and can be interpreted in the same way by every one reading it.
- Apply Penalties legally and only to the portions which penalties can legally be applied to
- Live by the law which council so strictly imposes on the rate Payers.
I would like to Acknowledge Penny Bright . It is because we looked at the rates bill she had that these issues have been raised. Her penalty bill is now significantly larger than her rates demands . While Auckland council wants to sell her house for effectively $13,000 in arrears rates and more than $20,000 in penalties.
Auckland council the time to be open and transparent with your rates penalty regime is now.
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