GDC agrees to defer rates to correct accounting error
Grey District Council agrees to defer rates to correct accounting error
Grey District Council today resolved to give notice of its intention to re-strike the general rates for 2024/2025 following the detection of an error in the allocation of costs across the nine rating categories for the district.
Grey District Mayor Tania Gibson says Council will meet again after 14 days to strike the new rate, which will push out the first invoices to September.
“The error, which resulted in some rating categories being significantly higher and some significantly lower, was discovered during a rates sampling exercise before the first invoices for this financial year were processed.
“Legally, we need to ensure we give our ratepayers 14 days notice of this change, and this will take us past the statutory timeframe for getting invoices out and allowing time for payment. Our first invoices will therefore go out late August, with payment due on 20 September.”
Mayor Gibson says subsequent rates invoices will go out on time and payment will be due on the regular three-month cycle.
Grey District Council Acting CE Paul Pretorius says he’s confident the error won’t be repeated.
“We now have a solid process in place for setting our rates and I’m confident this won’t be repeated.
“I’m pleased we were able to identify and correct the error before it impacted our ratepayers, and the fact that we were able to do so indicates we now have the processes in place.”
While the overall general rate of 13.65% was not affected by the error and will remain, the correction will prevent unintended consequences of the uneven distribution of costs across the nine rating categories for the financial year.
Mr Pretorius says the delay in sending out invoices will affect cashflow and unfortunately, Direct Debit payment arrangements for the first instalment. He repeated his earlier apology for any inconvenience caused and said Council’s administration is making promising gains in its ongoing focus to serve the community after a period of significant upheaval.
