The Thames-Coromandel District Council (hereinafter referred to as the Council) was empowered by section 164b to section 164k of the Local Government Act 1974 to seek lump sum contributions from ratepayers to finance capital costs of works as defined in section 164c of that Act, namely, works which would require the Council—

On the 28th day of March 1985 the Council resolved to construct a sewage disposal system for Whitianga (the work) and to invite the ratepayers in the Area of Benefit to make a lump sum contribution towards the capital cost of the work:

The Council established an Area of Benefit for the work and advised the ratepayers of the options either to make a lump sum contribution or to pay for the capital works by a uniform annual charge but omitted to record in the resolution mentioned in paragraph (b) above a description of the said Area of Benefit:

The Council calculated the estimated lump sum contribution under section 164d(1)(b)(i) of the Local Government Act 1974 on the basis that there were 1655 separately rateable properties within the Area of Benefit:

Section 164I(1)(b)(i) of the Act required the Council to recalculate the lump sum contribution on the completion of the work by dividing the actual net capital cost of the work by the number of separately rateable properties that were in the Area of Benefit at the time when the estimated net capital cost of the work was calculated:

Section 164I of the Local Government Act 1974 required the Council to recalculate the lump sum contribution of the work on the work’s completion and the Council recalculated the lump sum contribution when 99.5 percent of the work had been completed:

Between the calculation of the estimated lump sum contribution and the recalculation of the lump sum contribution upon substantial completion of the sewerage scheme, the number of rateable properties within the Area of Benefit was reduced by the amalgamation of titles to 1612 separately rateable properties:

The Council accordingly recalculated the lump sum contribution on substantial completion of the work on the basis that there were only 1612 rateable properties within the Area of Benefit:

As a result of the recalculation of the lump sum contribution on substantial completion of the work a balance lump sum contribution of $1,986.36 (GST inclusive) was payable in respect of all rateable properties within the Area of Benefit upon an election to make a lump sum contribution had been made:

Four lump sum contributors have not paid their contributions:

An application to the High Court has been lodged by those ratepayers to test the validity of the Council’s action:

The provisions of sections 164c and 164I of the Local Government Act 1974 have been breached in regard to the scheme as follows:

It is desirable to validate resolutions of the Council in regard to—