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The Council is informing residents about an issue in how General Rates were calculated for the 2025/26 rating year.

In December, a concern was raised about rates revenue being higher than expected. It was identified that this arose due to the way the Council 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. This review found that a required step to limit how much valuations could increase (a safeguard in Council’s Financial Strategy) did not occur. This means the cap that should have been applied was missed.

As a result, some ratepayers were charged more than they should have been. Current estimates indicate a full year impact of around $85 for most residential properties, and about $500 for rural properties, which generally have higher valuation increases. These are early estimates and the Council will keep affected ratepayers informed of exact impact.

To give residents confidence in the accuracy of the findings and to ensure that we can correct the issue, the Council has engaged an external party to independently check the calculations. Their work will confirm exactly who was affected, by how much, and what form of remediation (such as refunds or adjustments) is required.

This independent review has begun, and the Council will keep the community updated as it progresses. No one will pay more as a result of any fix. 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.

“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.”

Interim Chief Executive Steve Gibling said the Council is focused on accuracy and restoring trust.

“Our team takes this matter extremely seriously. 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.”

Selwyn District Council apologies for this error and is committed to ensuring that the rating system is fair, reliable, and transparent for all residents.

Next steps:

Residents should start to receive their Quarter 3 invoice from this week and it will stay exactly as it is. We will make any necessary corrections in your Quarter 4 bill in April. For most people, this will mean a reduction in next quarter’s rates bill.

FAQs

Are you investigating how this happened?
Yes. Alongside an independent validation we’re reviewing our systems and checks. We’ll publish improvements once confirmed and a report will go to our Audit and Risk committee for further analysis.

Will anyone pay more because of this?
No. Any correction will reduce amounts payable; no ratepayers rates will increase as a result of the fix.

Who made the mistake?
It arose from a combination of system and error in the calculation inputs. Our focus is on fixing it for ratepayers and changing Council processes as soon as possible so it can’t happen again.

How will you fix it?
Subject to Council decision, the Council can use section 119 LGRA to set the rate again at the altered amount, with 14 days’ public notice, and ensure no one’s assessed rates increase. Any reduction would be reflected by a credit or reduced final instalment for Q4 instalments this year.

How much will people get back?
Amounts vary by property. Early internal estimates suggest around $85 (residential) and $500 (rural) for the full year on average, but we’ll confirm amounts once the independent validation is complete.

Will a letter be sent out to advise who this has affected or is it just a wait and see?

Everyone affected will be advised. We are working through the details now and will communicate directly with ratepayers once we have confirmed information to share.

For direct‑debit payers, your payment schedule will be recalculated as part of Instalment 4, and the related adjustments will be applied.

When will people see the credit?
After Council’s decision and the statutory process, we expect the correction to flow through to the final instalment for this financial year. Q4 instalment invoices will reflect any changes.

What happens if you sell your house before the last quarter?
A simple credit may not be appropriate in these cases, so we will arrange an alternative method of repayment. Please email contactus@selwyn.govt.nz or call 0800 SELWYN in the first instance. We are working on a process how this will be handled.  We will have more information in the near future

Did Council set an unlawful rate?
The general rate was set in accordance with our Funding Impact Statement and section 23 of the Local Government (Rating) Act, so it is not unlawful. The issue is with a calculation input used at the time, which will be corrected.

What is the cost of the audit?
The audit will cost $30,000 and will be drawn from an existing budget.

How has it taken two invoicing cycles to detect it? Further, what's to say this hasn't happened for the past decade of surplus?

We acted quickly to investigate, be transparent, and commission an independent review. The external review will give additional assurance that this error is isolated. Strengthening our internal processes is a priority, and we are committed to ensuring ratepayers can have full confidence in our future calculations.

Last modified: 16 Feb 2026 4:18pm