About 1500 Dunedin ratepayers have been caught up in an error from the city council affecting rates paid through direct debit.
The Dunedin City Council confirmed yesterday there had been a problem with regularly scheduled debit amounts being underestimated.
Some ratepayers received incorrect direct debit calculations on their most recent rates notices.
The issue, caused by human error, affected ratepayers in parts of South Dunedin, Mosgiel, Mornington, Kaikorai Valley and Brockville, the council said.
"We are sending letters to all affected ratepayers advising them of the error, confirming their future payment amounts and apologising for any confusion, distress or inconvenience caused," a council spokesman said.
The error was being rectified quickly, he said.
"We have identified the cause of the error and updated our procedures accordingly."
The council was unable to provide figures to the Otago Daily Times of the total amount of money involved or the average impact per ratepayer affected.
Ratepayers who were under-charged will have their payments adjusted to make up the shortfall.
"Due to scheduled payment dates and a required 10-day notice period for changes to direct debits, those who pay weekly and monthly will be debited the lower amount at their next payment," the council spokesman said.
Any shortfall would be covered in the remaining payments in the 2024-25 financial year.
"Those who pay fortnightly will pay the correct amount for all payments, as their direct debits could be changed within the allowed timeframe."