Council rate debts continue to climb

(Supplied)

The COVID-19 pandemic has impacted rates payments, with Hume council owed $29.1 million in outstanding rates.

A report to the February 14 council meeting revealed that the value of rate arrears as of December 31, 2021, was $29.1 million, up $3.6 million from the year prior.

According to the report, the top five suburbs incurring debt were Criagieburn, Mickleham, Sunbury, Greenvale and Roxborough Park.

The debt comprises $14.91 million (51 per cent) in rates deferred prior to 2021-22, with the remaining $14.21 million raised as new debt.

Councillor Karen Sherry said the climbing debt were largely attributable to the difficulties of the pandemic.

“Unfortunately, our community is still doing it tough as a result of the COVID-19 pandemic,” Cr Sherry said.

“We have not charged interest on any debt for the last two years.

“We have put debt collection activities on hold and will not proceed with further debt collection activities during the pandemic.”

The report stated 3980 ratepayers had entered into COVID-19 payment arrangements with the council, with 107 of those cases previously associated with council’s debt collection department.

Of the 3980 applicants, 1363 (34 per cent) were still active.

Residential payments accounted for the largest portion of outstanding fees, with $22.4 million of the $29.1 million total arrears.

General rateable properties accounted for $13.77 million – or 92 per cent – of the outstanding payments.

Deputy mayor Sam Misho said there was no shame in applying to delay your payments.

“If you have an outstanding debt, don’t be afraid,” Cr Misho said.

“Don’t stick your head in the sand. Make the phone call and put in an arrangement. Once you’ve made that arrangement, council officers will actually support you … that eventually this will be history.”