Politics
Local Democracy Reporting

Nearly $3 million in unpaid rates owed to Wairarapa councils

58 mins ago
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Unpaid council rates total almost $2.8 million across Wairarapa.

By Emily Ireland of Local Democracy Reporting

About $983,000 was owed to the South Wairarapa District Council by a total of 389 ratepayers as at the end of June this year, an 11% jump on the same time last year.

Meanwhile, total unpaid rates were $1.075 million in Masterton and $703,000 in Carterton.

In South Wairarapa, $463,000 was owed by 153 ratepayers in Featherston, while 108 ratepayers in Greytown owed a combined $246,000 and 128 Martinborough ratepayers owed $274,000.

About 30 ratepayers still owed a collective $118,000 in rates from previous years in South Wairarapa.

A report to the council’s Risk and Assurance Committee said one ratepayer who owed just over $21,000 had been declared bankrupt and the council was still working through rates recovery.

The property of another ratepayer who owed almost $13,000 was in the process of being sold.

Owners of seven properties with combined rates arrears of about $32,000 had been sent default notices to initiate legal proceedings.

The report said there were a total of 68 ratepayers on repayment plans, which was the highest number in nine years.

In Masterton, the $1.075m in total unpaid rates, as at the end of June, was less than what was owed at the same time last year, and comprised current arrears of $1.015m and prior year arrears of $60,000.

A report to Masterton District Council’s Finance, Risk, and Assurance meeting said the number of properties with an overdue balance as at the end of June had decreased from 728 to 677 year on year.

The council’s commercial director David Paris said the reduction was a positive result that reflected the revenue team's "proactive approach in working with ratepayers to establish realistic payment arrangements before arrears become significant".

Paris said the council's total rates arrears represented 1.61% of rates levied, and remained "well below the commonly accepted benchmark of 2% of rates levied, demonstrating continued strong collection performance".

The report said 14 ratepayers owed a combined $183,000.

In Carterton, the total unpaid rates of $703,000, as at the end of June, were up from $653,000 at the same time last year.

Current arrears were 487,000 and prior year arrears were $216,000.

The council does not publish its detailed breakdown of rates arrears in public reports.

– LDR is local body journalism co-funded by RNZ and NZ On Air.

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