Cairns City Council received a commendation at the 2002 National Awards for Local Government for its financial management plan to improve management of outstanding rates and utility charge debtors. The plan aims to improve debt recovery without adversely impacting on the quality of life of ratepayers.
The strategy used the following approaches.
- Improving systems to ensure timely and accurate follow up of outstanding debt, and the management of ‘arrangements’ to pay.
- Using powers under the Queensland Local Government Act for the sale of land for unpaid rates.
- Improving the use of legal recovery services.
- Developing media strategies to ensure ratepayers were aware of Council’s actions in debt recovery.
- Establishing an Independent Rates Relief Tribunal (IRRT) to allow ratepayers genuinely unable to meet their rates obligations to apply for assistance.
Both organisational effectiveness objectives and the objective of sustainable service provision for all ratepayers have been achieved through Council’s approach. Outstanding rates were reduced from $9.14 million in June 2000 to $3.47 million in June 2002. From this improvement in its cash position, Council has been able to reduce its loan debt. This will provide greater opportunities to undertake large infrastructure projects for the benefit of the community.
The success of this strategy has provided staff with the confidence to undertake further projects to improve Council’s financial management. A number of other Local Government authorities have approached Cairns City Council to find out more about this project.
For further information contact David Farmer, CEO, on (07) 4044 3017.
