Rate debt arrearing its head

(Supplied)

Hume council is continuing to feel the impact of the COVID-19 pandemic, with $24.35 million still owed in outstanding rates.

A report to a council meeting on May 9 indicated the value of rate arrears as of March 21 this year was at $24.35 million, up $3.37 million from the previous year.

The top five suburbs with the highest debt included Craigieburn, Greenvale, Sunbury, Roxburgh Park and Mickleham.

The debt includes $12.73 million (52.5 per cent) of rates raised in old debt, and $11.52 million (47.5 percent) raised as new debt.

Councillor Jarrod Bell said it’s important to note that up until the pandemic commenced, the council had a more proactive approach to the collection of rates and arrears, but had been more lenient in recent years.

“Ultimately, this is a reality of a government, is that we must collect revenue so we can fund services and that is a collective and a community approach,” Cr Bell said.

“This report shows us just where the community is at in terms of these things, and unfortunately the picture isn’t amazing.

“But it is what it is, we are a community that has our fair share of trials and tribulations and I appreciate the compassion and empathy our officers go about in putting not only these reports together, but supporting our community through making sure they can get back on their feet,” he said.

The report stated 4123 ratepayers had entered into COVID-19 arrangements with the council, with 107 previously working with council’s debt collection agency.

Residential payments have continued to make up the largest portion of debts owing, with $19.28 million of the $24.35 million total arrears.