Clutha District Mayor Bryan Cadogan said yesterday a potential move from a new ratepayers group called Clutha Focus to initiate the court review of rates would only cost hard-pressed ratepayers more money, due to whatever legal fees the council might have to compass during the process.
The challenge was made by Tapanui ratepayer and Clutha Focus founder Bruce McGregor, who sent an open letter voicing his concerns and detailing his plans to the council, Southland MP Joseph Mooney and media by email on Sunday.
In the letter, Mr McGregor said rates projections included in the council’s recent long-term plan consultation document would create a "long-term social disaster".
Average increases are projected to be between 14% and 20% during each of the next three years.
"Based on your projected numbers in the LTP, annual rates by 2034 could be heading towards $9000 pa, and because debt is tripling also, it still won’t be enough. As it stands now under your proposals, by 2027, a single superannuant homeowner will be spending 20% of his or her income just on CDC rates. This is completely unacceptable ..."
Mr McGregor said he had also written to Minister of Local Government Simeon Brown with his concerns.
"Because there is such a feeling of hopelessness amongst ratepayers, I have flagged with both members of Parliament the possibility of us launching a legal challenge to these rises to look more closely at how the council got to where it is now.
"I have had preliminary discussions with a large legal firm and they are prepared to take this on and launch a judicial review ... Whether or not we proceed in this direction will depend on two things: [crowd-funded] ratepayer support for the challenge and whether either CDC or Wellington, or both, can quickly conjure up an acceptable Plan B."
However, Mr Cadogan told the ODT he did not believe there would be an appetite among ratepayers for such a challenge.
"Like all councils we’re but pawns in the Three Waters game, and we’ve done nothing wrong. It’s been our stance for the past five years that the costs related to Three Waters would be untenable for councils and ratepayers to bear alone, and that’s now being borne out.
"We’ve reached out to Mr McGregor on at least three separate occasions, and again in response to this letter, to meet face-to-face and discuss his concerns, but been rebuffed each time.
"He’s entitled to take whatever action he wishes, but I don’t see ratepayers having much appetite for a lengthy and costly process that will only add to the current financial burdens being faced."
