The Northern Midlands Council has held firm against claims it has wrongfully charged a disability support group thousands of dollars in rates.
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The accusation came from St Giles CEO Honni Pitt, who said the council should be required to reimburse the nonprofit $8000.
The sum comes from 28 years of rates paid on an unused block of land in the village of Rossarden, which was only recently discovered to not be in St Giles' name.
The council proposed a resolution to the title dispute under Section 137 of the Local Government Act, which allows it to sell the property for non-payment rates after three years as if the council owned the land.
But the offer was rejected by St Giles, with Ms Pitt claiming the council should be forced to donate the full amount immediately.
The Examiner sought a response from the Northern Midlands mayor but was directed to a spokesperson.
"This is the recommended solution, council has no legal requirement to repay rates paid," the spokesperson said.
"St Giles has been paying rates for some 28 years. Council can assist to resolve their title issue as recommended, otherwise St Giles has options to claim land or title and sell the parcel involved themselves."
The spokesperson said the nonprofit had already been provided with a solution, leaving the decision to St Giles.
A representative from the Office of Local Government said the matter needed to be resolved between the Northern Midlands Council and St Giles.
Minister for Local Government Nic Street said he was not in a position to intervene in operational matters of councils.