Town Councils Struggle with $133K Debt: What’s the Solution?

The Rakiraki and Tavua town councils are dealing with a total debt of $133,000 due to unpaid rates. Rakiraki Town Council is owed $107,000, while Tavua has outstanding arrears of $26,000. Tavua Town Council has successfully collected 76 percent of its rates, whereas Rakiraki lags with a 55 percent collection rate.

To motivate ratepayers to clear their dues, both councils have introduced incentives. These include a seven percent discount for full payments made this month and a five percent discount for payments made by September for those experiencing financial difficulties.

Sailosi Sawana, the chief executive officer of the Tavua/Rakiraki town councils, noted that additional measures include submitting claims to the Small Claims Tribunal. He pointed out that even if some ratepayers manage to pay their arrears within the 2023-2024 financial year, the overall arrears will continue to grow as the unpaid rates for that period will be added to existing debts.

Sawana highlighted the common challenges faced by both Rakiraki and Tavua in collecting town rates. He explained that both councils operate in rural areas where many ratepayers have irregular incomes. However, he acknowledged that some ratepayers demonstrate civic responsibility by fully paying their rates, which the council appreciates.

He urged ratepayers to settle their outstanding balances and take advantage of the available discounts, as their financial contributions are crucial for the council’s operations. The funds collected from town rates support various services, including street sweeping, drain cleaning, grass cutting, sanitary services, garbage collection, beautification efforts, and maintenance tasks. Although most of these services are offered at minimal or no cost, they are vital for maintaining the cleanliness and functionality of the towns.

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