Following a decision by the Finance Committee of the Georgetown Mayor and City Council (M&CC) the city’s Rates Collection Unit will from Thursday take to the streets in an attempt to recover some $8.4 billion in rates owned to council.
The unit’s six to seven members will begin visiting properties in Lacytown as part of a six-month recovery drive to recoup funds which in some cases have been owed to council for more than two decades.
“They will start with properties closest to council first and then we will go out. They will speak to property owners as to how they can offset and answer any queries,” acting City Treasurer John Douglas told reporters in Council Chambers yesterday.
According to Douglas, efforts will specifically target commercial properties which are paying residential rates as well as residential properties from which commercial businesses are being operated.
He explained that about 30% of the rates owed to council are from residential properties while 60% is owed by Commercial and Combination properties. The remaining 10% of outstanding rates are owed by land owners.
Those found in default will be asked to visit City Hall for “discussions on the way forward” which will be taken to the Finance Committee.
Specifically, defaulters who are able to pay at least 30% of the sum owed are expected to receive consideration from the Finance Committee while residents who are facing “challenges” can approach the “Difficult Circumstances Committee” which will also review cases to ascertain whether they are eligible for some consideration.
Douglas acknowledged that the Municipal and District Council’s Act (Chap 28:01) allows Council to approach the Courts to recoup sums owed but stated that council considers this option “a last resort”.
He was supported by acting Town Clerk Sharon Harry-Monroe who stressed that the judicial system is “cumbersome.”
Chapter 28:01 clearly states that a ratepayer defaults on their rate if the fail to pay the sum within 30 days of its due date. Three months after defaulting the Town Clerk is mandated to “institute proceedings to for the recovery of rates.”
Section 220 of the Act explicitly states that rates shall be recoverable from defaulters as “a civil debt under the petty debt act”; by distraint on (seizure of) moveable property of the person liable, whether such moveable property is situated on the property in respect of which the rates are due or elsewhere or by parate execution under Section 222 where the property in respect of which the rates are due is immovable property.
Despite these clear guidelines on means of recovery, council has continuous engaged either in “Amnesties” on interest or public appeals to recover the billions owed in rates.
