Monthly rates idea shelved

Ruapehu Bulletin, Volume 11, Issue 524, 22 February 1994, Page 12

Monthly rates idea shelved

A plan to spread rates demands across 12 instalments a year instead of three has been shelved until next February. The council considered a report from the revenue manager Carl Perrin at their meeting last Friday, which set out the advantages and disadvantages of each system. He said 12 monthly instalments would cost more in stationery, sorting, postage and staff time ($49,984

compared with the present $14,411 per annum), but that the council would gain $54,000 in interest from having the money earlier. An added advantage would be that it would save forwarding reminder notices to late payers as a monthly instalment notice would act as a reminder. The council would also save time in chasing late payers as monthly instalments would allow them to budget better.

The total cost savings to council were estimated at $9000. Cr Graham Cosford said

if such a change were to be made, why not introduce a discount system similar to King Country Energy' s at

the same time. Chief Executive Cliff Houston said monthly billing was standard commercial practice and asked if there was any good reason for rating each four months . Cr Weston Kirton said budgeting agencies had told him a monthly system would help people budget. But councillors felt there had been too much change for ratepayers in recent years and that they should "consolidate" and review the idea in 12 months.