Town Councils Battle $133K Debt: Will Incentives Work?

Rakiraki and Tavua town councils are contending with a total debt of $133,000 in unpaid rates. Of this amount, Rakiraki Town Council is owed $107,000, while Tavua has arrears totaling $26,000. Despite these figures, Tavua has managed to collect 76 percent of its rates, whereas Rakiraki’s collection rate stands at 55 percent.

To motivate ratepayers to clear their outstanding dues, both councils are offering incentives, including a seven percent discount for full payments made this month and a five percent discount for those facing financial difficulties who pay by September.

Sailosi Sawana, chief executive officer of the Tavua/Rakiraki town councils, indicated that additional actions include lodging claims with the Small Claims Tribunal. He noted that while some ratepayers may settle their debts in the 2023-2024 financial year, new unpaid rates will contribute to the existing arrears.

Sawana elaborated on the shared challenges faced by the councils regarding rate collection, noting that both are situated in rural areas where most ratepayers struggle with inconsistent income. Nevertheless, he acknowledged that some residents demonstrate civic responsibility by paying their rates fully, and the councils value their commitment.

He urged all ratepayers to take the opportunity to settle their debts within the discount window. Payment of town rates is vital for funding the councils’ operations, which include essential services like street sweeping, drain cleaning, grass maintenance, and garbage collection. Sawana emphasized that these services, often available at minimal or no cost, are crucial for maintaining the cleanliness and appeal of the towns.

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