Tararua Council error means over 300 homeowners get surprise bill

Residents in Dannevirke are among those who have been billed for the council mistake. Photo / Mark Mitchell

Hundreds of low-income homeowners in the Tararua District have been hit with a surprise hefty bill due to a long-running council error.

Tararua District Council (TDC) is asking 321 homeowners to pay, in many cases, thousands of dollars in historical rates the council has realised it is owed after uncovering “a faulty process for recalculating direct debit payments”.

This fault has been ongoing for six years, with the council now owed $400,000. It has also resulted in overpayments from 281 households, totalling about $147,000, who will be refunded.

Letters were sent on Friday to impacted ratepayers, mainly low-income earners and beneficiaries.

One Dannevirke homeowner living on a benefit, who did not want to be named, said the council’s accounting practices were “not good enough” after she was billed about $3000.

The letters include a “sincere apology” but also state “by law [the] council needs to recoup the money” owed to it.

Methods of payment to the council can include a lump sum, a payment plan or a third option. The council is meeting on Wednesday to consider a new policy to create the third option.

If that new policy passes (which would require public consultation), it will allow a homeowner to postpone payment until they next sell their house, even if that is decades in the future.

“Our council recently discovered a faulty process for recalculating direct debit payments of rates that dates back to 2018,” Tararua Mayor Tracey Collis said.

“This error impacts those who pay by direct debit and receive a rates rebate.

“We take full responsibility and, as mayor, I want to offer a heartfelt personal apology.”

The Rates Rebate Scheme provides a subsidy for low-income earners to help cover their annual rates bill, and ratepayers can opt to pay rates using direct debit.

The aforementioned Dannevirke homeowner and beneficiary told Hawke’s Bay Today she opened her letter on Sunday.

“They just want to start whacking an extra $50 off me every week,” she said, regarding a payment plan highlighted in her letter.

“As a beneficiary, that’s a hell of a lot to take off someone... that is my grocery money.”

She has been paying rates via direct debit for years and was shocked to learn of the error.

“I am sick of this airy-fairy apology stuff from the mayor,” she said.

“It just doesn’t cut it. I mean, [in terms of] accounting at a council – it is just not good enough.”

She said she would sit down with a council representative at a drop-in session this week and wanted to see for herself a breakdown of the figures.

Of the $400,340 owed to the council, 321 homeowners owe from as little as one cent to up to as much as $6747.42.

Of the $146,758 the council owes to ratepayers, 281 homeowners are owed between one cent and $3983.55.

The council is investigating how the faulty process occurred to ensure the error does not happen again.

There are just over 10,000 ratepayers across the Tararua district.

Drop-in sessions are being held for impacted ratepayers and you can also contact TDC on (06) 374 4080 if you want further information.

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.