The Mangawhai Ratepayers Association is to take court action against the Kaipara District Council to try to put a stop to rate rises.
Commissioners took over the council's affairs last year after it ran up debts of more than $80 million.
Ratepayers association chairman Bruce Rogan said there is too much debt to be repaid and the Government needs to acknowledge the council is no longer financially viable.
Mr Rogan said rates went up more than 19% for this year and demands of 100% rises have been floated to reduce debt.
"The ratepayers in this district simply do not have enough money to pay for what they've done," he said.
"The Government and their commissioners have got a mission to send the ratepayers bankrupt as opposed to sending the council itself bankrupt."
The association plans to seek a judicial review next week.
It says the council has made hundreds of errors, including not consulting the community on a raft of changes and wants the High Court to review those errors and overturn the council's ability to increase rates.