Murrumbidgee Council’s recent sale of land for unpaid rates and charges drew a strong crowd, with more than 50 registered bidders taking part in the public auction.
All 10 properties offered under the hammer were sold, allowing the Council to recover the full amount of outstanding rates and charges, along with the associated costs of the sale.
Mayor, Ruth McRae OAM said the result reflects both strong interest from the community and the importance of ensuring fairness in the recovery of overdue rates.
“It is never an easy decision to proceed to auction, but as a council we have a responsibility to all ratepayers to recover outstanding debts so we can continue to provide essential services,” the Mayor said.
“We are pleased that today’s outcome has enabled us to recover all monies owed to us at council.”
Mayor McRae said the Council strongly encourages ratepayers to keep up with their rates payments, as recovering outstanding debts via the sale of properties was “always a last resort”.
“However, we will now move forward every February with the process of selling properties with arrears of rates greater than five years,” she said.
“This is good business management, ensuring the financial sustainability of the council, while making sure all ratepayers are meeting their obligations.”
When the auction was announced earlier this year, there were 23 properties with rates and charges owing for five years or more, totalling almost $385,000. Council says it was pleased that the outstanding balances were settled on 13 of those properties prior to the sale, allowing them to be removed from the list.
Following settlement, the funds received from each sale are distributed in accordance with the legislation. Monies are first applied to cover the outstanding rates and charges and the costs of the sale, as well as any mortgages, caveats or similar claims. Any surplus funds are then returned to the property owner (the ratepayer whose land was sold).
