Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698752804606.pdf (New Zealand)
Tasman District Council (Validation and Recovery of Certain Rates) Bill Local Bill Explanatory note General policy statement It has come to the attention of the Tasman District Council (the Coun- cil) that a number of irregularities occurred in the setting and assess- ing of rates in the financial years relating to 2003/2004 to 2008/2009 (inclusive).

This has raised questions about the validity of those rates.
The irregularities related to the way in which the Council purported to comply with certain provisions of the Local Government (Rating) Act 2002 (the Act).
The types of irregularities included— • a failure to resolve to set and assess rates in accordance with section 23 of the Act for some of the years: resolving to adopt rates before the Council had adopted the annual plan and funding impact statement: a failure to state, in accordance with section 24 of the Act, the financial year to which the rates applied, that the rates were payable by instalments, and the dates by which the specified amounts were to be paid for some of the years: a failure to resolve to authorise that penalties were to be added to rates that were not paid by the due date.
• • • 96—1 2 Tasman District Council (Validation and Recovery of Certain Rates) Bill Explanatory note In addition, the Council has identified that an irregularity occurred with the setting of the Ligar Bay stormwater rate and the Tata Beach stormwater rate for the 2006/2007 financial year.
The Council did not comply with section 17 and Schedule 2 of the Local Government (Rating) Act 2002 because it failed to identify the category of rateable land in Ligar Bay and Tata Beach in respect of which these rates were purported to be set and assessed.
The Council considers that it is desirable to address these irregular- ities and legislation is the only means by which all rates that were purported to be set and assessed by the Council can be validated and any penalties payable on any outstanding rates can be validated.
The Council also considers that it is desirable to specifically address the irregularity with the Ligar Bay and Tata Beach stormwater rates for the 2006/2007 financial year, and again, legislation is the only means by which those rates can be validated.

The objects of this Bill cannot be attained otherwise than by legisla- tion.

Clause by clause analysis The Preamble describes the background to the Bill and sets out the objects of the Bill.

Clause 1 is the Title clause.


Clause 2 provides that the Bill comes into force on the day after the date on which it receives the Royal assent.

Part 1 Preliminary provisions Clause 3 states the purposes of the Bill.

Clause 4 defines certain terms used in the Bill.


Part 2 Validation and recovery of certain rates Specified rates Clause 5 validates the 2003 rates, the 2004 rates, the 2005 rates, the 2006 rates, the 2007 rates, and the 2008 rates (the specified rates) purportedly set and assessed by the Council.
Explanatory note Tasman District Council (Validation and Recovery of Certain Rates) Bill 3 Clause 6 validates all penalties added to any unpaid specified rates in reliance on the funding impact statement for those rates.

Clause 7 declares all money received by the Council in payment of the specified rates and any penalties paid in respect of those rates to have been lawfully paid to, and received by, the Council.
Clause 8 provides that any part of the specified rates or any penalties payable in respect of those rates (by virtue of clause 6) that have not been paid to the Council on or after the commencement of this Bill are lawfully payable to the Council and may be recovered by the Council as if the rates or penalties had always been lawfully payable.
Ligar Bay and Tata Beach stormwater rates Clause 9 validates the Ligar Bay stormwater rate and the Tata Beach stormwater rate, which are targeted rates for the purposes of storm- water works in the Ligar Bay urban drainage area and the Tata Beach urban drainage area purportedly set by the Council for the 2006/2007 financial year.
Hon Damien O’Connor Tasman District Council (Validation and Recovery of Certain Rates) Bill Local Bill Contents Preamble Title Commencement Purposes Interpretation Part 1 Preliminary provisions Part 2 Validation and recovery of certain rates Specified rates Validation of specified rates Validation of penalties Payment of specified rates declared lawful Recovery of unpaid specified rates or penalties declared lawful Ligar Bay and Tata Beach stormwater rates Validation of Ligar Bay and Tata Beach stormwater rates 96—1 Page 2 10 10 10 11 12 12 12 12 13 1 Preamble Tasman District Council (Validation and Recovery of Certain Rates) Bill Preamble 2003/2004 rates (1) At a special council meeting held on 26 June 2003, the Tasman 10 District Council resolved, among other things, as follows: “That the general rate, including utilities rate, and Uniform 5 Annual General Charge be adopted as proposed in Council’s draft 2003/2004 Annual Plan: “That the Motueka Business Rate, as proposed in Council’s draft 2003/2004 Annual Plan, be approved for the 2003/2004 financial year: “That the Richmond Business Rate be increased to raise $5,000 more than last year and the Corporate Services Man- ager write to all ratepayers in the defined area advising them of the increased amount: “That Council adopt a Community Facilities Rate for the 15 2003/2004 year: “That the Community Facilities Rate for the 2003/2004 year be set at $35.00 per rateable property: “That Council adopts its 2003/2004 Annual Plan, as amended, including rates and charges, pursuant to section 83 of the Local 20 Government Act 2002: “That Council adopts its Funding Impact Statement, as amended, for the 2003/2004 financial year”:” The funding impact statement— (a) set out all of the rates that the Council proposed to set 25 and assess in the Tasman District for the 2003/2004 fi- nancial year; and provided that the rates could be paid by instalments for the 2003/2004 financial year and set out the dates by which the specified amounts were to be paid; and
 set out the penalties that were to be added to rates that were not paid by the due date: (b) (c) 30 (2) (3) However, the resolutions did not comply with section 23 of the Local Government (Rating) Act 2002 (the Act) because they failed— (a) to state clearly that the Council was setting rates as re- quired by that section; and 35 2 (4) (5) Tasman District Council (Validation and Recovery of Certain Rates) Bill Preamble (b) to refer to all of the rates that were purported to be set (when the resolutions only referred to the adoption of some of the rates): The Council did not comply with section 23 of the Act by purporting to set the rates before the Council had resolved to 5 adopt the annual plan and the funding impact statement: The Council did not comply with section 24 of the Act because it failed to state in a resolution,— (a) for all of the rates that were purported to be set and assessed, the financial year to which the rates applied; 10 and that the rates could be paid by instalments for the 2003/2004 financial year and the dates by which the specified amounts were to be paid: (b) (6) The Council did not comply with section 57 of the Act because 15 it failed to resolve to authorise that penalties be added to rates that were not paid by the due date: 2004/2005 rates (7) At a special council meeting held on 29 June 2004, the Tasman 20 District Council resolved, among other things, as follows: “That the rating information and charges incorporating the Uniform Annual General Charge and targeted rates No 1 to 7 inclusive be adopted: “That wording in the Funding Impact Statement for the tar- geted rate—Mapua Stopbank, read “Council sets a targeted 25 rate for the purpose of meeting targeted investigations costs of the Mapua stopbank”: “That the remaining items of the Funding Impact Statement, including targeted rates 9 to 16 inclusive, and definitions, as- sessment and invoicing, penalties, uneconomic balances, and 30 early payment be adopted: “That— “(a) the
 Tasman District Council sets rates under the Local Government (Rating) Act 2002 on rating units in the District for the financial year commencing 1 July 2004 35 and ending on 30 June 2005, as detailed in the Funding Impact Statement: 3 Preamble Tasman District Council (Validation and Recovery of Certain Rates) Bill “(b) except for metered water rates, the Council will invoice rates quarterly, with final dates for payment of each in- stalment being 31 August 2004, 30 November 2004, 28 February 2005, and 31 May 2005.
Metered rates are in- voiced separately.
All invoices for metered water rates 5 are due for payment on the 20th day of the month fol- lowing the month in which the invoice issued: “That Council adopt its Long Term Council Community Plan for the period commencing 1 July 2004”:” The funding impact statement— (a) set out all of the rates that the Council proposed to set and assess in the Tasman District for the 2004/2005 fi- nancial year; and provided that the rates could be paid by instalments for the 2004/2005 financial year and set out the dates by 15 which the specified amounts were to be paid; and set out the penalties that were to be added to rates that were not paid by the due date: (b) (c) 10 (8) (9) The Council did not comply with section 23 of the Act by purporting to set the rates before the Council had resolved to 20 adopt the Long-term Council Community Plan and the funding impact statement: (10) The Council did not comply with section 57 of the Act because it failed to resolve to authorise that penalties be added to rates that were not paid by the due date: 25 2005/2006 rates (11) At a meeting held on 24 June 2005, the Tasman District Coun- cil resolved, among other things, as follows: “That the Refuse/Recycling Rate of $55 (inclusive of GST) and refuse bag price of $1.10 (inclusive of GST) be adopted 30 for incorporation into Council’s Funding Statement for the 2005/2006 financial year: “That the general rate increase for the 2005/2006 financial year be 5.9%: “That the Uniform Annual General Charge for the 2005/2006 35 financial year be $160: “That targeted rates 1–4 as identified in the Funding Impact Statement be adopted for the 2005/2006 year: 4 Tasman District Council (Validation and Recovery of Certain Rates) Bill Preamble “That targeted rates 5–18, from the Funding Impact Statement, with amendments as noted, be adopted for the 2005/2006 year”:” (12) At a meeting held on 30 June 2005, the Tasman District Coun- cil resolved, among other things, as follows: “That Council— “(a) adopts the Funding Impact Statement dated 30 June 2005 for the
 2005/2006 financial year; and adopts its 2005/2006 Annual Plan as amended by the Council resolutions of 24 June 2005”: “(b) 5 10 (13) The funding impact statement— (a) (b) (c) set out all of the rates that the Council proposed to set and assess in the Tasman District for the 2005/2006 fi- nancial year; and provided that the rates could be paid by instalments for 15 the 2005/2006 financial year and set out the dates by which the specified amounts were to be paid; and set out the penalties that were to be added to rates that were not paid by the due date: (14) The resolutions did not comply with section 23 of the Act be- 20 cause they failed— (a) (b) to state clearly that the Council was setting rates as re- quired by that section; and to refer to all of the rates that were purported to be set (when the resolutions only referred to the adoption of 25 some of the rates): (15) The Council did not comply with section 23 of the Act by purporting to set the rates before the Council had resolved to adopt the annual plan and the funding impact statement: (16) The Council did not comply with section 24 of the Act because 30 it failed to state in a resolution,— (a) for all of the rates that were purported to be set and assessed, the financial year to which the rates applied; and that the rates could be paid by instalments for the 35 2005/2006 financial year and the dates by which the specified amounts were to be paid: (b) 5 Preamble Tasman District Council (Validation and Recovery of Certain Rates) Bill (17) The Council did not comply with section 57 of the Act because it failed to resolve to authorise that penalties be added to rates that were not paid by the due date: 2006/2007 rates (18) At a special council meeting held on 20 June 2006, the Tasman 5 District Council resolved, among other things, as follows: “That the general rate increase for the 2006/2007 year be 4.8% (excluding growth): “That the Uniform Annual General Charge be increased by $20 in 2006/2007, and a further
 proposed $20 for the subse- 10 quent two years, ie 2007/2008 and 2008/2009: “That— “(a) the Funding Impact Statement, as amended, for 2006/2007 be adopted by Council for inclusion in the LTCCP: 15 “(b) Council adopt its final LTCCP, as amended, for audit for 2006–2016”: (19) At a special council meeting held on 29 June 2006, the Tasman District Council resolved, among other things, as follows: “That the 2006–2016 Long Term Council Community Plan 20 Volumes 1 and 2 be adopted for audit with the amendments noted: “That Council adopts the audited LTCCP for 2006–2016”:” (20) The funding impact statement— (a) (b) (c) set out all of the rates that the Council proposed to set 25 and assess in the Tasman District for the 2006/2007 fi- nancial year; and provided that the rates could be paid by instalments for the 2006/2007 financial year and set out the dates by which the specified amounts were to be paid; and set out the penalties that were to be added to rates that were not paid by the due date: 30 (21) The Council did not comply with section 23 of the Act because it failed to resolve to set its rates: (22) The Council did not comply with section 24 of the Act because 35 it failed to state in a resolution,— (a) for all of the rates that were purported to be set, the financial year to which the rates applied; and 6 Tasman District Council (Validation and Recovery of Certain Rates) Bill Preamble (b) that the rates could be paid by instalments for the 2006/2007 financial year and the dates by which the specified amounts were to be paid: (23) The Council did not comply with section 57 of the Act because it failed to resolve to authorise that penalties be added to rates 5 that were not paid by the due date: 2007/2008 rates (24) At a special council meeting held on 22 June 2007, the Tasman “(b) District Council resolved, among other things, as follows: “That the Kaiteriteri refuse rate be $41.00 for the 2007/2008 10 financial year: “That— “(a) a fire protection feasibility
 study for the central Takaka township be undertaken at a cost of up to $90,000 and the fire protection operations rate as indicated in the 15 draft annual plan be reduced from $140.00 to $88.00 for the 2007/2008 financial year: the revised wording be included in the 2007/2008 An- nual Plan: the funding impact statement be adopted for the 20 “That 2007/2008 year: “That Council adopts its 2007/2008 Annual Plan incorporating the following documents, as amended: “• “• “• “• “• Schedule of fees and charges Reserve financial contributions Variations to engineering work programme Amendment to the LTCCP Funding Impact Statement”:” 25 (25) The funding impact statement— (a) (b) (c) set out all of the rates that the Council proposed to set 30 and assess in the Tasman District for the 2007/2008 fi- nancial year; and provided that the rates could be paid by instalments for the 2007/2008 financial year and set out the dates by which the specified amounts were to be paid; and set out the penalties that were to be added to rates that were not paid by the due date: 35 7 Preamble Tasman District Council (Validation and Recovery of Certain Rates) Bill (26) The Council did not comply with section 23 of the Act because it failed to resolve to set its rates: (27) The Council did not comply with section 24 of the Act because it failed to state in a resolution,— (a) (b) for all of the rates that were purported to be set, the 5 financial year to which the rates applied; and that the rates could be paid by instalments for the 2007/2008 financial year and the dates by which the specified amounts were to be paid: (28) The Council did not comply with section 57 of the Act because 10 it failed to resolve to authorise that penalties be added to rates that were not paid by the due date: 2008/2009 rates (29) At a meeting held on 26 June 2008, the Tasman District Coun- cil resolved, among other things, as follows: “That the Richmond business rate contained in the draft 2008/2009 Annual Plan be
 increased by 3%.
“That Council fund the additional costs identified in the annual budgets of community boards in Golden Bay and Motueka by way of a targeted rate over each community board area.
“That— “(a) the funding impact statement as attached to the agenda, and as amended to include the increased funding for Nelson Tasman Tourism, exclusion of funding for the Headingly Centre, the increase to the Richmond Busi- 25 ness Rate and cost savings and additional revenue, be adopted for the 2008/2009 year: 15 20 “(b) Council adopts its 2008/2009 Annual Plan: “(c) the ASB Bank Aquatic Centre targeted rate be consid- ered in next year’s LTCCP review”: 30 (30) The funding impact statement— (a) (b) set out all of the rates that the Council proposed to set and assess in the Tasman District for the 2008/2009 fi- nancial year; and provided that the rates could be paid by instalments for 35 the 2008/2009 financial year and set out the dates by which the specified amounts were to be paid; and 8 Tasman District Council (Validation and Recovery of Certain Rates) Bill Preamble (c) set out the penalties that were to be added to rates that were not paid by the due date: (31) The Council did not comply with section 23 of the Act because it failed to resolve to set its rates: (32) The Council did not comply with section 24 of the Act because 5 it failed to state in a resolution,— (a) for all of the rates that were purported to be set and assessed, the financial year to which the rates applied; and that the rates could be paid by instalments for the 10 2008/2009 financial year and the dates by which the specified amounts were to be paid: (b) (33) The Council did not comply with section 57 of the Act because it failed to resolve to authorise that penalties be added to rates that were not paid by the due date: 15 Ligar Bay and Tata Beach stormwater rates (34) The funding impact statement for the 2006/2007 financial year— (a) (b) (c) referred to the Council setting a targeted rate for the pur- poses of stormwater works, with the rate being based on 20 the capital value of each rating unit in various drainage areas; and further set out the categories of property and the rates (in cents per dollar of capital value) for the
 different drainage areas; and referred to the Council resolving to include new drainage areas (including Ligar Bay and Tata Beach) from 1 July 2006: 25 (35) Each of the drainage areas was purported to be accompan- ied by a map setting out the boundaries of the area.
How- 30 ever, maps purporting to show the boundaries of the Ligar Bay urban drainage area and the Tata Beach urban drainage area for the 2006/2007 financial year for the purposes of the Ligar Bay and Tata Beach stormwater rates were not identified: (36) The Council did not comply with section 17 and Schedule 2 35 of the Act because it failed to identify the category of rateable land in Ligar Bay and Tata Beach in respect of which the Ligar 9 cl 1 Tasman District Council (Validation and Recovery of Certain Rates) Bill Bay and Tata Beach stormwater rates were purported to be set and assessed: (37) General It is desirable that the irregularities relating to the 2003 rates, 2004 rates, 2005 rates, 2006 rates, 2007 rates, 2008 rates (the 5 specified rates), and Ligar Bay and Tata Beach stormwater rates for the 2006/2007 financial year be validated and that the penalties added to those rates be validated: (38) Legislation is the only means by which the specified rates and the Ligar Bay and Tata Beach stormwater rates can be valid- 10 ated: (39) The objects of this Act cannot be attained other than by legis- lation: The Parliament of New Zealand therefore enacts as follows: Title This Act is the Tasman District Council (Validation and Re- covery of Certain Rates) Act 2013.
15 Commencement This Act comes into force on the day after the date on which it receives the Royal assent.
20 Part 1 Preliminary provisions Purposes The purposes of this Act are to— (a) validate specified rates set and assessed by the Council 25 and the penalties added to those rates; and treat all money received by the Council in payment of the specified rates or penalties added to those rates as having been lawfully paid to, and received by, the Coun- cil; and authorise the Council to recover any part of the specified rates and any penalties added to those rates that remain 30 (b) (c) 1 2 3 10 4 Tasman District Council (Validation and Recovery of Certain Rates) Bill Part 1 cl 4 unpaid as if the specified rates or penalties had always been lawfully payable; and validate the Ligar Bay stormwater rate and the Tata Beach stormwater rate for the 2006/2007 financial year.
(d) 5 Interpretation In this Act, unless the context otherwise requires,— 2003 rates means the rates as set out in the funding impact statement adopted by the Council for the 2003/2004 financial year 2004 rates means the rates as set out in the funding impact 10 statement adopted by the Council for the 2004/2005 financial year 2005 rates means the rates as set out in the funding impact statement adopted by the Council for the 2005/2006 financial year 2006 rates— (a) means the rates as set out in the funding impact state- ment adopted by the Council for the 2006/2007 finan- cial year; and includes, to avoid doubt, the Tata Beach stormwater rate 20 and the Ligar Bay stormwater rate (b) 15 2007 rates means the rates as set out in the funding impact statement adopted by the Council for the 2007/2008 financial year 2008 rates means the rates as set out in the funding impact 25 statement adopted by the Council for the 2008/2009 financial year Council means the Tasman District Council funding impact statement has the meaning given by section 5 of the Local Government (Rating) Act 2002 Ligar Bay stormwater rate means the targeted rate purport- edly set by the Council for the 2006/2007 financial year for the purpose of stormwater works in the Ligar Bay urban drainage area rate has the meaning given by section 5 of the Local Govern- 35 ment (Rating) Act 2002 30 11 Part 2 cl 5 Tasman District Council (Validation and Recovery of Certain Rates) Bill specified rates means the 2003 rates, 2004 rates, 2005 rates, 2006 rates, 2007 rates, and 2008 rates Tata Beach stormwater rate means the targeted rate purport- edly set by the Council for the 2006/2007 financial year for the purpose of stormwater works in the Tata Beach urban drainage 5 area.
Part 2 Validation and recovery of certain rates Specified rates Validation of specified rates Despite the failure of the Council to comply with section 23 or 24 of the Local Government (Rating) Act 2002,— (a) the specified rates are valid and declared to have been lawfully set by the Council; and all actions of the Council in setting, assessing, and re- 15 covering the specified rates are valid and declared to be and to always have been lawful.
(b) 10 Validation of penalties Despite the failure of the Council to comply with section 57 of the Local Government (Rating) Act 2002, all penalties added 20 to the specified rates in reliance on the penalty section of the funding impact statement for those rates are valid and declared to have been lawfully imposed by the Council.
Payment of specified rates declared lawful All money received by the Council in payment of the specified 25 rates and any penalties paid in respect of those rates are to be treated as having been lawfully paid to, and received by, the Council.
Recovery of unpaid specified rates or penalties declared lawful Any part of the specified rates and any penalties payable in respect of those rates that have not been paid to the Council on or after the commencement of this Act— (a) are declared to be lawfully payable to the Council; and 30 5 6 7 8 12 Tasman District Council (Validation and Recovery of Certain Rates) Bill Part 2 cl 9 (b) may be recovered by the Council as if the rates or penal- ties had always been lawfully payable.
Ligar Bay and Tata Beach stormwater rates Validation of Ligar Bay and Tata Beach stormwater rates The Ligar Bay stormwater rate and the Tata Beach stormwater 5 rate for the 2006/2007 financial year are valid and declared to have been lawfully set and assessed by the Council despite the Council’s failure to identify the category of rateable land for the purposes of each rate as required by section 17 and Schedule 2 of the Local Government (Rating) Act 2002.
Sections 5 to 8 apply, with any necessary modifications, in respect of the Ligar Bay stormwater rate and the Tata Beach stormwater rate.

10 9 (1) (2) 12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2013 13