My previous response answered the question about s35(2).
However I would agree with Owen that it is really not needed here. Surely condition 6 applies ? You have a legitimate interest, hard to see any unwarranted prejudice.
Principle 2 may cause a little flutter but I would take comfort from the ICO guidance which focusses on fairness and "reasonable" expectations. E.g. If I owe my Council money I cannot reasonably, in a democratic society, expect them not to pursue me for it just because the only information they have on my whereabouts is from my application for a library ticket ...
Looked at from the outside the reasonable ratepayer would find it bizarre if the Council used Data Protection as an excuse not to pursue me.
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