Photo: Local Democracy Reporting
Selwyn District Council has apologised after over-charging some ratepayers due to an error in its rates calculations.
An independent review is looking into the issue and will identify who the affected ratepayers are and how much they are owed.
The council confirmed there had been a miscalculation of general rates for the 2025/26 rating year.
Council interim chief executive Steve Gibling said the council is focused on accuracy and restoring trust.
"We acted quickly once the issue was identified and have brought in external experts to ensure every calculation is validated.
"We will communicate openly with residents as the work progresses and make sure any necessary corrections are made promptly and accurately."
In December, concerns were raised about rates revenue being higher than expected.
The issue arose due to the way the council had loaded updated property valuations (supplied by Quotable Value (QV)) into its rating system.
While residents' rates bills include the updated property valuations, the way in which the council calculated the general rate component was incorrect.
The review found that a required step to limit how much valuations could increase, a safeguard in council's financial strategy, did not occur.
A cap that should have been applied was missed and some ratepayers were overcharged.
The council's estimated a full year impact of around $85 for most residential properties, and about $500 for rural properties, which generally have higher valuation increases.
The council has engaged an external party to independently check the calculations and confirm exactly who was affected, by how much, and what form of remediation (such as refunds or adjustments) is required - but no one will pay more as a result of any fix.
This independent review is underway and people will receive a credit or reduced final instalment to be applied by Quarter 4 for affected ratepayers.
Mayor Lydia Gliddon said the council's priority is transparency and fairness.
"When something isn't right, we need to front it, fix it, and make sure it doesn't happen again," Gliddon said.
"Residents deserve complete confidence in how their rates are set.
"Bringing in an independent review is the right step to confirm facts, correct the impact and give our community assurance that every step is being taken to fix the issue and put stronger safeguards in to prevent it happening again."
LDR is local body journalism co-funded by RNZ and NZ On Air.
