City plugs $6m debt leak
THE Gold Coast City Council has retrieved up to $6 million in overpaid rates from a large northern property as it considers tougher measures on longterm offenders.
Councillors at an Events Tourism and Governance committee meeting this week briefly discussed the rates recovery coup which was provided in a confidential item on water debt management.
A debt of “$4 million to $6 million” was referred to from “multiple owners on a large site at Hope Island”.
Northern-based councillor William Owen-Jones thanked senior council officer Leigh Jackson, from revenue services, who headed the recovery process. “It’s an outstanding effort. The city thanks you,” Cr Owen-Jones said.
The council had worked hard to police rate notices after the Bulletin in 2012 found more than 33,000 Coast ratepayers – the population of a provincial town – were yet to pay their rates. At least 9233 residents had contacted council staff about paying in instalments.
Late last year the council decided to auction two units in some of the Glitter Strip’s most popular holiday spots at Surfers Paradise and Coolangatta for unpaid rates where owners had been in arrears for more than three years.
About 37,860 people owed city hall $24.4 million in charges, with the council already planning to auction off a further two houses to recoup the funds.
By “improved communication” and by identifying properties facing difficulties early, the council was attempting to keep outstanding debt down from historical highs.
Cr Owen-Jones asked officers at this week’s meeting if it was possible to ensure that ratepayers who refused to pay rates across a long period were not given discounts on their bills. Under the existing system, a ratepayer could be given a discount for paying their general rates bill despite owing money for water.
Officers confirmed that it was “legally possible” but there were practical complications because rate bills worked off at least two different computer systems.
“We can have a look at the systems to see if we can do it,” a senior officer said.
Cr Owen-Jones said it could be more effective for the council and fairer for all ratepayers to remove the monetary incentive for those not paying all their rates.
Outside the committee, he told the Bulletin: “The vast majority of people do the right thing. There is a small subset who received the discount for (general) rates but are in arrears for water.”