May 15th 2013

Court upholds targeted rate for Waimarama Domain purchase

The court has upheld Hastings District Council’s introduction of a targeted rate which helped pay for the purchase of the Waimarama Domain.

Council bought the 5.9 hectare domain for $1.17m from the Society of St Mary Trust in 2011 and asked neighbouring landowners for a total of $360,000 to support the purchase. There are 19 properties near the domain and all those landowners eventually agreed to pay the targeted rate except for Mrs Janis Tacon who sought a court declaration that the targeted rate was not lawfully levied.

Under the Declaratory Judgments Act 1908, Justice Wylie either declined to make the declarations sought by Mrs Tacon or made declarations in line with the arguments made by Council.

Council Chief Executive Ross McLeod says “The judge has also ruled that he would have declined Mrs Tacon relief if she had applied for a Judicial Review of the decision to impose the targeted rate. The judge concluded that the Council had clearly explained the basis of the targeted rate to all landowners and Mrs Tacon was properly informed and consulted with in relation to the issue.”

“The application of the targeted rate was detailed in Council’s 2012/22 Long Term Plan (LTP) which provides an opportunity for community participation in Council decision making. The judge concluded that the purpose of the LTP in informing the community and enabling input into decision making was clearly met in this case.”

Ross McLeod says “However, the Judge did raise a concern that there were some minor deficiencies in the detail of the “Funding Impact Statement” in the LTP and how it complies with the detailed requirements of the Local Government Act and the Local Government (Rating) Act. As this was the first time a Funding Impact Statement has been required to be prepared, we will learn from and implement Justice Wylie’s helpful guidance.”

“Council will approach the plaintiff in the first instance to discuss the matter of the recovery of costs so as to minimise any impact on ratepayers from this action.”

ENDS

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