The Government has ruled out appointing a statutory manager or commissioner to run the Far North District Council - at this stage - but officials are keeping an eye on the council.
Last month FNDC watchdog Des Mahoney wrote to Local Government Minister Anne Tolley asking her to implement her powers under the Local Government Act to take control of the council.
Mr Mahoney, who also launched a petition seeking thousands of signatures to support the letter, said the council was so dysfunctional and fragmented it couldn't carry out its statutory functions, and the council was endangering, or likely to endanger, the health and safety of residents.
In her response Ms Tolley said under the Local Government Act a high threshold was needed for ministerial intervention, but it was not clear that there was sufficient evidence to warrant her to do so, at this time.
''My officials in the Department of Internal Affairs are aware of ratepayer concerns, and are monitoring the situation. They will advise me should a case for intervention become apparent.''