Nearly 15,000 issued incorrect ORC rates bills

A blunder means more than 14,700 ratepayers in the Otago Regional Council area have been issued with incorrect rates.

The council apologised on Friday for the error, which emerged after it had already struck the rates for the next financial year.

ORC Chief Executive Richard Saunders said two issues were identified with the recent rates strike that would require it to send out amended rates invoices to affected ratepayers.

"We’re sincerely sorry for the inconvenience caused to ratepayers and will be amending processes in the future to ensure there’s no repeat.

"The largest number of affected people [in the wider Dunedin district] will be contacted by letter shortly."

In the Oamaru area a new transport rate was incorrectly applied and overcharged to a small number of contiguous properties, which should not have received the $5.45 (including GST) fixed charge, Mr Saunders said.

The 972 people in Oamaru incorrectly charged the Oamaru Transport Rate, were advised by letter last month that their rates were being credited and they can either; reduce the payment amount to ORC if they had not yet paid their rates; claim a refund or use as a credit toward next year’s rates.

"Those ratepayers were offered the option to retain the credit to use next year or contact ORC if they would prefer a refund."

In the wider Dunedin district there was an error in the Rating Information Database which resulted in the expanded Leith indirect flood rate being omitted from some property rate charges.

"We’re very conscious of the financial demands being placed on ratepayers around the country at present, and I can only highlight that the majority of the undercharging for Indirect Leith flood protection rate averages between $15 to less than $20 per property.”

Mr Saunders emphasized there would be no penalty rates applied to the undercharging for the Leith indirect flood rate, and while ratepayers would be notified this month, they have until 30 June 2025 to pay.

The Leith Indirect rate had always been charged to some properties in Dunedin.

This was extended in the current rating year to apply to all properties in the Dunedin district, but excludes the ratepayers already being charged within the existing Leith Direct targeted rate area.

The undercharging amounted to $219,972 rates having to be reinvoiced.

About 86% of those 13,789 ratepayers affected will be invoiced for less than $20 and 99% in total will be invoiced for less than $100. There are 21 properties worth more than $15 million, of which five will need to pay more than $1000.

Mr Saunders said the estimated cost of reinvoicing for the rates was less than $20,000.

Ratepayers for the Leith Indirect Rate will shortly be sent a letter with their amended invoice.

The correction to the Leith Indirect rate includes contributions from properties from the districts around places including Waikouaiti, Dunedin city, Middlemarch and Hyde, Mosgiel, Taieri, Outram, Allanton and Henley.

The spread of the additional amounts to be reinvoiced for Leith Indirect Rate.

A governance report is set down to come before ORC’s Finance Committee for noting on November 6.