Council $3 million in red after data error

Wellington City Council faces a $3 million revenue shortfall after water meter users were undercharged due to a data inputting error.

The error, which was picked up late last year, saw the city’s residential water users charged the rates set for the 2019/20 financial year as opposed to the new, increased rates set during last year’s 2021-31 Long Term Plan deliberations.

Meter users were supposed to be charged $2.88 per cubic metre of water but were in fact charged $2.435/m3. Addition

Sara Hay

Wellington City Council chief financial officer

ally, the annual rate for the fixed charge per water meter connection was supposed to be $160.68, but users were only charged $135.96.

The error could result in a $3 million loss in revenue for the council depending on actual water usage for metered accounts versus budgeted volumes. City council chief financial officer Sara Hay said the shortfall was the result of a data inputting error through a combination of systems and manual processes. ‘‘This is a very unfortunate situation.’’

The error creates a risk that not enough revenue will be raised to cover the operational costs involved. However, it could be made up through operational underspend or higher than budgeted water volumes, she said. It’s unlikely the city’s 3151 commercial and 630 residential water-meter users will have to make up the shortfall.

A report to council’s kāwai māhirahira audit and risk subcommittee recommends making up the revenue loss through borrowing rather than attempting to recover the under-charged amount.

‘‘This is a very unfortunate situation.’’