Charity’s rates bill in the balance
The decision dictating that Ozanam House must pay rates still stands – for now, and a proposal to make a grant to the charitable trust for its first bill has been defeated.
The trust, which provides accommodation for cancer patients and support people staying in the city for treatment at Palmerston North Hospital, has had the general part of its rates remitted until this year.
However, because it owns property extending beyond 1.5 hectares, it is no longer entitled to an automatic remission under the Rates Act.
And it did not qualify for remission of its $24,472 general rates bill under the Palmerston North City Council’s policy because it exists to support people who are not city residents.
The council considered a report into the decision in the private part of its meeting on August 26. The report has now been publicly released.
In it, council chief financial officer Grant Elliott said the council could choose to review the policy if it wanted charities such as Ozanam House to become eligible for relief.
He said the remissions panel had recognised the rates bill would be unexpected and agreed to phase in the rates over four years.
The remissions panel had recognised the rates bill would be unexpected and agreed to phase in the rates over four years.
Grant Elliott council chief financial officer
That left the trust with a bill of $6118 this financial year.
A proposal to make a grant to the trust to cover that amount was voted down among councillors by six votes to nine.
Those who supported the oneyear reprieve were Brent Barrett, Susan Baty, Rachel Bowen, Vaughan Dennison, Lorna Johnson and Karen Naylor.
But the council has proposed to review its rates remission policy during next year’s Annual Plan process, including public consultation about proposed changes.
Councillors have also asked to be kept better informed about the application of the policy so they would not be taken by surprise by decisions such as the Ozanam House case.
Ozanam House secretary Roger Clark and chairman Bill Bly could not be contacted for comment.