Moreover, 18 per cent are monies owing to the council for one year, while $54,300 has been owed for more than five years.
"All outstanding rates are managed in the rates department using debt management software," the report reads.
"This applies specific rules to rates debt to ensure the collection policies detailed in the Local Government (Rating) Act 2002 are adhered to.
"Ratepayers with current arrears are sent regular notices including penalty letters, reminder notices and some stronger warning letters as the end of the financial year approaches."
The report notes that most of the rates arrears of $833,000, excluding Maori Freehold Land of $72,000, have been either placed with the bank, sent to collection agency Baycorp New Zealand Ltd where no mortgage is available to collect on, or have come to an agreed payment arrangement to ensure a clear balance within an acceptable time frame.
"The remaining arrears are made up of multiple-owned general lands, at $53,000, who have been contacted by council and are yet to have an arrangement agreed," it reads.
"We've recommended payment arrangements to these ratepayers with a deadline of 14 days to contact council."
In regards to the breakdown, $163,780 are with the bank, $172,804 are with Baycorp, $328,156 are under arrangement, $168,685 are remaining arrears.
"The June value includes all arrears as current and now due," it says.
Thirty-seven per cent of ratepayers direct debit their rates.