West Coast Regional Council chief executive Darryl Lew has now instigated an audit of his council's rating system following the findings of an external review. Photo: Local Democracy Reporting/ Greymouth Star - Brendon McMahon
The West Coast Regional Council says an external review into the first instalment of rates bills has found that about half of them were incorrectly charged.
The council on Wednesday announced Price Waterhouse Cooper had completed an external review into the mess.
The review found "outdated" capital valuation figures were behind significant inaccuracies in about 50 percent - around 11,000 - of the bills sent by council early this month to its 22,000 property rating base.
Chief executive Darryl Lew again apologised on behalf of council.
It follows ratepayers being shocked at opening their bills early this month to find increases of anywhere up to 100 percent.
The council passed a general rates rise of 16.4 percent in June.
Lew said he would initiate a further audit to determine what went wrong and to ensure it did not happen again.
Almost all of the main towns on the West Coast were affected, apart from Reefton.
The capital values used to calculate the factors in the rates strike for each special rating district had been based on "outdated capital value figures", Lew said.
The largest variations were found in Greymouth, Punakaiki, Westport, Karamea, Hokitika, Red Jacks (Grey Valley) and Wanganui (Hari Hari) special rating districts.
"The review also found rates variations in the Grey Rating District have resulted from the Grey Floodwall Rating District Boundary extension and the capital value of property within this area," Lew said.
Price Waterhouse Cooper identified the "underlying variations" that affected a number of rates notices, he said.
"I am now initiating an audit to determine what went wrong in council's procedures to ensure future controls are put in place that will prevent this happening again."
The West Coast Regional Council headquarters at Pāroa near Greymouth. Photo: Supplied via LDR
On 20 October, the council announced a further extension of the 2023-24 first rates instalment due date, to Thursday 30 November.
Council had also now reviewed the levies for the affected areas with the correct capital valuations and would be raising "credit notes" for each of the properties concerned.
Lew apologised for the inconvenience of the resulting "rates corrections".
He urged those unsure if their property had been rated correctly to contact the council office.
Those who had already paid their rates for the year in full could ask council for a refund.
Lew said council would ensure staff efficiently created rates credit notes.
"Ratepayers in the affected areas will receive a letter in due course stating what they have been charged for the first rates demand, a breakdown of their current rating assessment and advice on the correct amount to pay."
The second rates demand would only charge the difference between the first and second rates instalment and would therefore be a lower amount to pay.
Lew said repayment plan options were also available for those affected by variations, due to the wrong capital value being used in the first place.
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