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Home / New Zealand

Ratepayers owing $400,000 in arrears

Wairarapa Times-Age
8 May, 2013 06:47 PM2 mins to read

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Latest figures show errant ratepayers owe Masterton District Council a total of $400,000 in arrears over the first two rating instalments.

The council's finance manager David Paris reported to yesterday's Audit Committee meeting there were 577 properties that each owed more than $50 for the current year, being 4.6 per cent of the district's properties.

The average arrears was $708 per property.

Mr Paris said there were several property owners who were in arrears "due to specific circumstances".

He said details of individual ratepayers circumstances "are not public information" but that council officers are actively seeking payment or some type of resolution in each case.

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As far as arrears from prior rating years was concerned, Mr Paris said at the end of February council called on mortgage holders, namely banks, for the outstanding rates as is the law under the Rating Act.

Mr Paris said some banks had paid but others have written to the guilty ratepayers warning them of the consequences, and will not pay until the statutory three-month period has expired at the end of May.

At the time of writing his report to the Audit Committee Mr Paris said there were 46 assessments with a total outstanding balance of $121,046 "that we expect to receive payment from".

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"It is likely by the end of May some would have cleared the arrears and the bank will not be obliged to pay. We will write to all ratepayers with rates outstanding as at the first week of June and point out the forthcoming penalty in July, and the consequences of non-payment meaning that a further 10 per cent penalty will be added," Mr Paris said.

Elsewhere in his report Mr Paris spoke of the Governance project which is being jointly funded by Masterton, Carterton and South Wairarapa district councils.

Masterton's share is 58 per cent of the cost and the council's full year budget of $87,000 will not be enough to meet the share of the costs now being incurred.

Mr Paris said Masterton's share up until the end of March was $177,600.

He said by the end of the financial year the unfunded expenditure "is expected to be offset against operating savings generated in the corporate area" but did not detail how this would be done.

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