Tararua District mayor apologises for rates payment error

The Tararua District mayor has offered a "heartfelt personal apology" for a botch-up that has left some ratepayers owing thousands of dollars that the council must collect.

A mistake calculating direct debit payments for rates, dating back to 2018, meant more than 320 households had been undercharged, and 281 had paid more than was necessary.

To make matters worse, it had hit the most vulnerable households - those already eligible for rates rebates.

Tararua District mayor Tracey Collis told Checkpoint's Lisa Owen she was "devastated" over the error.

"People put their trust in council with making a direct debit and they've been let down and we are committed to having an investigation... in order that an error like this never happens again."

She had met with residents over the issue and would work with them "every step of the way" to help them meet their repayments.

The council was putting together a rates postponement policy, but the debt still had to be paid, she said.

"Absolutely, I wish I could change this - we are deeply, deeply sorry.

"We know our residents very well, and this is heartbreaking."

The highest bill owed by a household was $5700, she said.

The payment error had hit those households eligible for rates rebates, on incomes less than $38,000, "our most vulnerable community", she said.

Under the Local Government (Rating) Act, the council had been forced to recoup the money, and could not legally write off the amount owed, nor give credit for future rates, she said.

It was, however, looking at allowing residents to delay payments without penalty or accruing interest for an agreed period - for example, until the sale of their home, she said.

In the meantime, the council would be providing them with wrap-around support.

"My first concern is that there isn't increased hardship, that they are OK, that we have that support wrapped around them and sit down [and] individually work with each person on just what is possible."

Many ratepayers had asked why it had taken years for the error to be noticed, and the council was committed to an investigation on how it had occurred and to prevent it happening again.

It appeared to have been caused by a combination of systems processes and "human error", Collis said.

The issued had been highlighted in one town, where residents noticed a pattern of incorrect direct debit payments. Some had already made a payment plan, so the error had not been flagged higher up in council, she said.

Council investigations revealed 602 ratepayers had been impacted.

"When people come into council and say, 'I've got an issue', I need to ensure that's being filtered through to the right department as well, so there's a few areas we will look at."