A Tauranga woman has been locked in a row with council over unpaid rates as she believes the city was “denied democracy” when the commission was reappointed.

Jan Gyenge has taken the stance “no democracy, no rates”, so hasn’t paid them since March 2022 when the commission’s reappointment was announced.

She didn’t want to reveal the unpaid amount, but the council’s website shows her rates for March 2022 to June 2024 as $8770. Unpaid rates can incur a 10 per cent penalty so the amount owed could be $9647.

The four-person commission led by Anne Tolley took over running Tauranga City Council in February 2021 after the previous dysfunctional council was sacked.

In March 2022, former Local Government Minister Nanaia Mahuta reappointed the commission until July 2024 and cancelled the election set for October 2022.

Gyenge says the community should have been consulted about the reappointment.

“Every residents’ rights matter collectively.”

The commission’s 2021 exit plan recommended their term be extended so they could complete their work, including restoring trust in the council and creating a robust long-term plan.

At the time, Mahuta said their reappointment would provide stability as the council still faced substantial infrastructure and funding challenges.

Former Local Government Minister Nanaia Mahuta announcing the commission’s reappointment in March 2022. Photo / Andrew Warner.

“It’s about us all”

“An election is one aspect of the democratic process. Democracy is to be observed on a daily basis by the council. It’s about how decisions are made and how information is garnered," says Gyenge.

“It’s about us all - not just a few people.”

The Bethlehem resident is asking the council to “put it right” and write the unpaid amounts off and stop the court action against her.

The council has begun legal action to recover the unpaid rates, Gyenge says. If the rates remain unpaid the council can sell the property to recover the debt.

The Local Government Act required rates are paid but councils must also deliver democracy.

Gyenge said she would challenge the council on this point.

“What happened was not right.

“If no one takes a stand and feels some pain about it, then other people … feel disenfranchised.”

Now the council has elected members, Gyenge says she will pay her rates from now on.

Activist Penny Bright took a similar stance refusing to pay rates on her Auckland property for 11 years due to a perceived lack of transparency in council spending.

In 2018, before her death, Bright paid Auckland Council her outstanding bill to stop the property being sold.

Commissioners Bill Wasley, Stephen Selwood, Anne Tolley and Shadrach Rolleston ran Tauranga from February 2021 until July this year. Photo / Alisha Evans: SunLive.

The DIA’s stance

A Department of Internal Affairs spokesperson says the law required property owners to pay their rates.

“Attempts to avoid paying rates that fund essential services for our cities and towns can take precious time and resources and is something we would strongly discourage, especially at a time when ratepayers are facing rising cost pressures.”

Tauranga’s commission performed the same functions and powers as elected representatives, they say.

The commission was accountable to the community and were required to follow local government processes, including consultation, the spokesperson says.

Every property owner is legally required to pay rates. Photo / Alex Burton

Council’s rates policy

Tauranga City Council rating policy and revenue manager Jim Taylor didn’t comment on Gyenge’s case specifically.

Rates provided around half of council’s income and were used to fund council activities and services, he says.

It was important everyone paid their share, but the council understood some ratepayers might not be able pay their rates by the due date, Taylor says

The rates collection team worked with many ratepayers each year to help them catch up on their rates, he says.

If payments are overdue, the council contacts the property owner to organise a payment arrangement.

If payment is not received by the end of the year and there’s a mortgage on the property, the council contacted the bank. If the outstanding amount wasn’t received within 90 days the bank pays the rates, which is added to the mortgage.

If there isn’t a mortgage on the property the council uses Baycorp, its collection agency, to pursue the debt.

If Baycorp was unsuccessful, council can begin legal action.

If the debt remained unpaid, the property can be sold through a rating sale.

Taylor says council preferred to reach an arrangement with the ratepayer rather than sell the property.

“Paying all outstanding rates and penalties, and any costs interest or disbursements, would immediately stop all proceedings.”

LDR is local body journalism co-funded by RNZ and NZ On Air.