THE City of Bayswater will pay for all legal costs involved in the transfer of Noranda’s rates debt after the City of Swan declined to pay half.
Noranda was relocated into the City of Bayswater on July 1 this year, after a successful proposal from the Noranda Action Group to the Local Government Advisory Board.
At a meeting in September, Bayswater council moved to pay off the $51,241.40 rates debt and called on Swan to pay $900.52 of the $1801.04 legal costs.
The City of Swan declined the request as paying the legal costs were in Bayswater’s “financial interest”.
“Rates attract a rate of 11 per cent, whereas current term deposits are less than 3 per cent, therefore it is in the City of Bayswater’s financial interests to pay the outstanding rates debt,” the City of Swan stated.
At a meeting held last week, Bayswater council moved without discussion to pay both the rates’ debt and full legal costs involved.
According to an officer’s report, recovery of outstanding rates balances will take time so this approved agreement will have cash flow implications.
It was also stated paying the costs and executing the agreement was the most simple and efficient use of the City’s resources.