Meander Valley Gazette

View Original

A question of reserve

November 2017 | Sharon Webb

THE MEANDER Valley Council has confirmed that it used various methods to get unpaid rates from the owners of a Mole Creek home and that a reserve price was set when it finally sold the property in September.

At the September council meeting Cllr Rodney Synfield questioned whether council staff had taken action to recover the last outstanding rates before council’s decision in March to sell a home owned by the Beerepoots – other than writing to the owners.

And Cllr Synfield joined with Cllr John Temple in questioning the price gained for the property.

He asked for details about council’s duty of care to ensure a price reflective of the property’s true valuation and Cllr Temple asked why, in behaving as the owner of the land, as the Local Government Act allows, council had set no reserve price.

Director of Corporate Services Jon Harmey has confirmed council officers had actively pursued the outstanding rates since a letter was received from the family on 13th June 2012.

“The last payment of rates was received in July 2010,” Mr Harmey said.

“There have been several letters involved, discussions and meetings.

“Council staff have issued notices of intention to sell by letter, placed notices on the properties and advertised the intention to sell the property twice in The Examiner in June 2016.

“The debts were placed into collection with the Tasmanian Collection Services.

A vehicle was seized under a warrant to sell property and sold in early 2013 with the revenue applied to the outstanding debts.”

He said that council staff kept councillors informed of progress on the situation through workshops and through their monthly briefing reports.

“The property was sold at public auction where all members of the public were able to purchase it and it was sold to the person who offered the highest price. The market determined the value of the property at the public auction.”

Mr Harmey confirmed council had complied with the Local Government Act in setting a reserve price for the Beerepoots’ property.

“Council set a reserve to cover Sections 139(1)(a) and 139(1)(b), which has been the practice in previous public auctions for sale of land for unpaid rates.”

The Beerepoot home, Blue Wren Hideaway, was owned by a family who also owned a farm and a shop associated with the family’s business, the Melita Honey Farm.

Meander Valley Council was poised to sell all three properties because it was owed $9,332 in rates. An anonymous donor paid the rates on the honey business properties, ostensibly because of the business’ tourist value to Chudleigh, leaving $3,500 in outstanding rates.

Around 20 registered bidders and interested parties attended the September auction; the home was bought by an over-the-phone bidder for $120,000 after just six minutes.

The starting bid was $20,000.

Remaining funds from the sale after council has covered rates and auction costs will be returned to the Beerpoots.

The family refused to pay rates because, according to their letter to council: “Council’s world view is that the ‘law of the land’ governs life and thus also provides progress, growth and security. On the other hand, we believe that our Heavenly Father is Sovereign and that He reigns today, thus we worship Him and Him alone so that His will is established on the earth … you are asking us to bow down to a false god which is something we cannot do.”