Council to sell properties with unpaid rates

A total of 42 ratepayers’ properties are on the market in an attempt by Central Coast Council-under-administration to recoup five years or more in unpaid rates.

“The sale of properties is regarded as a last measure to be undertaken only after other debt recovery options have been exhausted,” Council said.

“Council has abided by all legislative requirements in this process.”

The list of properties and the names of people known to be associated with them are fewer than the 72 properties reported to the April Council meeting, with 30 properties no longer eligible for sale.

At the April meeting, Council said it expected to recoup $1.5M.

Of the 42 for sale, 23 properties are in the former Wyong local government area, including at Dooralong, Gwandalan, Long Jetty and Bateau Bay.

The largest amount of unpaid rates is almost $67,000 for a property at Glenning Valley and the smallest amount is less than $7,000 for a property at Lake Munmorah.

The 19 properties for sale in the southern part of the Coast include properties at Bar Point, Terrigal, Kincumber and Springfield.

The lowest outstanding amount in unpaid rates is just over $10,000 at Patonga, and the highest amount owing is just over $57,000 at Umina Beach.

Council said the sale process is defined by the Local Government Act (1993) – Section 713.

“Some of these properties are uninhabited, and/or owned by businesses rather than individuals,” Council said.

“All affected property owners have been advised that if their outstanding debt is paid in full before the auction date set for their property’s sale, they will be removed from the sale list.”

Owners can settle overdue amounts up until the auction date.

“Council has expressed a firm preference for the settlement of all outstanding debts before the scheduled property auction date,” Council said.

It expects the number of properties currently listed for auction to be reduced, as Council representatives continue to work with property owners, including undertaking visits to engage with ratepayers directly, “gaining a deeper understanding of individual financial situations and discussing viable options” for payments.

Council has a financial hardship policy and said it acknowledges that some ratepayers can’t pay promptly because they are experiencing financial hardship.

“However, the properties that are being included in the current Sale for Rates process are properties that have significant outstanding unpaid rates and charges for the legislated period of five years or longer,” Council said.

“It should be noted Council has not taken action against properties owned by pensioners or other owners who are experiencing short term difficulty.”

A public announcement, authorised by CEO David Farmer, says the properties in the north will be offered for sale by auction on February 27 and the ones in the south on February 28 unless the rates are paid or an arrangement can be agreed upon.

Both auctions will be held at the Wyong council chambers, undertaken by an appointed auctioneer who will manage all valuing, marketing and auctioning of the properties still listed for auction.

Any property that is not sold at auction will be sold by private treaty.

All costs incurred by Council will be recovered as part of settlement of properties sold.

The Local Government Act says the balance of the purchase money should be held by the council in trust for the people having estates or interests in the land.

Council may pay the balance of the purchase money or any part of the balance to whoever it thinks is entitled to it.

At the April 26 meeting, Administrator Rik Hart agreed to the sales and to the direct appointment of Recoupa due to the unavailability of competitive or reliable tenderers.

Recoupa had been identified as the only organisation in NSW that had specific experience in the sale of land that is occupied residential land, as part of the recovery of unpaid rates.

Council said this specific experience was critical to the process considering 56 properties fell within this category, and the associated sensitivity of dealing with these properties.

“It is intended that going forward the sale of land for unpaid rates debt recovery process is pursued at the end of each financial year,” Council said in April.

“Council’s ability to effectively manage outstanding amounts is measured through the Outstanding Rates Ratio benchmark set by the Office of Local Government at five per cent.

“The proposed Sale of Land for Unpaid Rates will support achieving the benchmark.”

Council said it was important that outstanding rates were collected to reduce the unfair burden on ratepayers who pay on time.

Merilyn Vale