Grey District rates likely to be deferred to September

A mistake made in the Enhanced Annual Plan meant the setting of rates at the 27 June meeting is unsustainable, despite the actual rates strike having been done correctly.

Grey District Mayor Tania Gibson says the error won’t affect the 13.65% general rate rise, but it would have impacted the rates for the District’s nine rating categories.

“An error was made which created unintended consequences across our rating categories – basically, the allocation of costs to each area was incorrect, and so while the overall rate strike was right, the mistake would have made the rates unsustainable.”

Mayor Gibson says the process of calculating sample rates uncovered the error, and she is grateful to the team that caught the mistake before ratepayers were affected.

“Council has taken legal advice and while we’ve picked up the error and corrected it, we need to ensure we give our community at least 14 days notice of the change. This meeting is to ensure that the rates strike we make is the rates strike we intended to make.”

Mayor Gibson says Council will meet again in 14 days to confirm the new rates.

“This will make the issuing of rate invoices by the 20 August due date difficult so we may need to extend the due date for our first invoice to ratepayers to 20 September.”

Mayor Gibson says all other due dates will remain the same – November, February and May 20.

Acting CE Paul Pretorius says while it’s disappointing that mistakes were made, the error didn’t impact the total rate requirement as signalled.

“The inconsistencies in the financial details caused some of our nine rating categories to be higher, and some lower. While the overall intake would not have changed, there would have been unintended consequences to different rating categories. It is essential we correct this now.

“The delayed rate strike will have an impact on Council’s cashflow and will also impact on debit orders etc, which adds to it being most unfortunate. I gladly offer an apology for any inconvenience caused,” Mr Pretorius says.

“The team at Council worked hard during a period of upheaval, and over a much shorter than normal period of time produced a Draft Enhanced Annual Plan and associated financial reports. Unfortunately, as signalled, the chances of mistakes in such a rushed process were high and this has resulted in this mistake.

“I’m pleased Council is able to put the process back on track and provide assurance to our community that we are getting on top of things and that our staff and our processes continue to become more proficient.”

Grey District Council’s nine rating categories:

• Residential 1
  
• Residential 2
• Residential 3
• Rural Residential
• Rural
• Commercial 1
• Commercial 2
• Commercial 3
• Farming/Forestry