Rodney Stevens
A Grafton over 50’s village that took Clarence Valley Council to the Land and Environment Court in 2023 claiming that it should be exempt from paying sewerage charges will have to pay council’s $146,000 in legal fees after the case was dismissed.
Turf Street Grafton seniors and aged care housing provider Clarence Village Limited, a registered not-for-profit organisation, lodged an application with the Land and Environment Court LEC in 2023 claiming it should be exempt from paying sewerage charges to Clarence Valley Council CVC.
The matter arose when anomalies were found in an internal audit by council staff of rates and charges, which resulted in supplementary notices being issued.
When they received their supplementary notice, Clarence Village Limited expressed its concern and sent a letter of complaint to council requesting an exemption.
The request for an exemption by Clarence Village was presented to council at its February 28, 2023, meeting where the village’s Chief Executive Officer, Duncan McKimm made a deputation.
Following the deputation, at the February meeting councillors unanimously voted to defer making a resolution to allow negotiations between the parties.
Then on May 16, 2023, council was served with a summons, and following a directions hearing on June 22, 2023, the matter was set down for hearing in the LEC on September 20 and 21, 2023.
LEC Chief Judge, Justice BJ Preston, who presided over the matter dismissed the proceedings and ordered Clarence Village Limited to pay council’s court costs of $146,054.40.
At the December 19 CVC meeting, Cr Karen Toms moved the council staff recommendation, which was seconded by Cr Allison Whaites that council:
- Note the judgement made by The Honourable Justice B J Preston in the NSW Land and Environment Court (Case No 2023/00156524).
- Note the legal costs incurred by Council in relation to this matter as at 31 October, 2023 – total $146,054.40 (ext GST) are to be paid by Clarence Village Limited.
- Note the budget variation (NIL impact on the General Fund) will be reported in the Q2 Quarterly Budget Review Statement to be tabled at the February Ordinary Meeting.
Cr Toms said while she was happy about council’s positive outcome from the LEC proceedings, she was sad for the residents of Clarence Village Limited.
“Whilst they are a charity, they were quite forceful in their belief that we were doing the wrong thing,” she said.
“We had terrible advertisements on radio making us sound like we were doing something really wrong.”
Cr Toms said Clarence Village Limited were offered the chance to withdraw their application before it proceeded to court.
“Whilst its great for our ratepayers that they have to pay our legal costs, which were quite extensive, it’s extremely sad that this wonderful organisation that do wonderful things for our elderly in our community (have to pay this).”
Cr Allison Whaites thanked council staff and councillors for not folding to social media “carry on”, an incorrect radio advertisement, and a survey she thought she was being bullied by.
She also apologised to the Clarence Village Limited residents who were caught up in the legal stoush and said she had residents of the village coming to her crying and blaming her for the situation.
In his judgement, obtained by the CV Independent, Judge Preston stated there was a difference between rates and charges, and he ruled that council was charging for sewage services, but levying rates.
Therefore, as a registered charity, Clarence Village Limited can avoid rates, but not charges.