Council wipes bad debt
Porirua City Council has written off a $238,000 debt from a former Whitby developer, rather than chase it through the courts.
As part of a presentation to the council finance committee last week, chief financial officer Roy Baker listed a group of overdue debtors owing more than $3000.
Some councillors questioned reading the names of companies in the presence of media, but Baker said it was a matter of public record.
One payment arrangement has been entered into with a debtor whose $66,000 debt is 90 days overdue and one person has filed an objection with the Environment Court over council fees totalling $73,000.
David Bradford’s $238k debt won’t be pursued.
However, the biggest outstanding amount won’t be pursued – $238,000 from Whitby Coastal Estates Ltd developer David Bradford.
Baker said the cost was from a ‘‘land transaction’’ between the council and Bradford.
Despite Whitby Coastal Estates Ltd selling its remaining land to Todd Group about four years ago, the $238,000 debt remained with Bradford.
‘‘The cost of going through the courts was thought to be high, so we are in the process of writing this debt off,’’ Baker said.
The council is also owed $112,000 in rates arrears from previous financial years.
Overall, capital expenditure for the financial year, due to end in June, is forecast to be $6.2 million less than budgeted.