MunicipalNews

How to read your municipal statement

A detailed explanation on how to read your municipal statement.

Understanding one’s municipal statement can be quite tricky, hence the Mogale City Local Municipality (MCLM) has given the News a detailed explanation of what everything means.

A sample statement provided by the Mogale City Local Municipality. Photo submitted.

1. Balance b/forward: The previous balance on your account that has been carried over from the previous statement to the current statement.

1.1 Interest: A finance charge on an account that has not been paid on the date it was due for payment.

1.2 Bank trans: Refers to a payment that has been made through a bank deposit or an electronic funds transfer (EFT), and the date that payment appeared on the municipal bank statement. This section of your statement also shows the date on which you made a payment, in this instance, payment was made on 13 October 2020.

1.3 Journal reconcile: This is when the municipality compares two sets of documents to make sure they are in agreement. Simply put, this shows the date that the municipality balances its accounts on the last day of the month. This amount will always be at R0.00.

2. Property tax: This is a tax charged to property owners by the municipality in terms of the Municipality Property
Rates policy. This fee differs from owner to owner as it is calculated based on the market value of your property, category of your property, and the approved tariff for that category.

2.1 Property tax Residential: This is a property tax charged on residential properties – other property categories will have a different description. It is calculated by multiplying the market value of your property according to the municipal Valuation Roll and the approved tariff e.g. (R1 000 000 x 0.01467) which means (value of your property multiplied by current property rate tariff). This amount is then divided by 12 months to determine the levy for each month, which equals R1 222.50 per month.

2.2 Property tax Res Val rebate: This is a property rates discount granted on the first R50 000 (currently) of the market value of a residential property to give tax relief to residential property owners with low market value based on the amount of the rate payable on the property. This means that if your property value is not more than R50 000, you will not be charged any property tax. It is calculated as R50 000 x 0.01467, divided by 12 to determine the discount of R61.12 per month.

2.3 Property tax Res tariff rebate: The tariff rebate is an additional discount on the property rate tariff given to residential property owners to provide them with additional tax relief. It is calculated by taking the amount payable per 2.1 above, minus the discount per 2.2 above, then the result is multiplied by 45 per cent to determine this additional discount.

2.4 Special Rebate Covid: This is a special 10 per cent discount offered by the municipality to all ratepayers for the current financial year (2020/ 2021) in response to financial difficulties experienced by most individuals and organisations due to the Covid-19 pandemic. This rebate is determined by taking the property rates amount that would have been payable after applying all other rebates (where applicable) and multiplying that amount by the 10 per cent rebate.

3. Electricity

3.1 Domestic fixed charge R/a/CB: An amount payable per conventionally metered electricity connection every month, whether electricity is consumed or not. This is charged for availing and maintaining the electricity network irrespective of whether there is consumption or not. This amount is currently fixed per month based on the tariff, number of meters and supply category – in this instance R371.4 remains the same for 12 months.

3.2 Domestic 2 PART kWh: This is the charge for electricity consumption for the month per readings taken from your meter. Estimated consumption is also used to bill this amount where no readings can be obtained. In this instance, it is 2 015 units x R1.41 (one unit of electricity costs R1.41) equalling R2 841.15. The tariff for electricity consumption will differ according to the type and size of supply and use thereof, or the classification of the property.

4. Water

4.1 Water residential consumption: This is your water consumption for the month in accordance with readings taken from your meter. Estimated consumption is also used to bill this amount where no readings can be obtained. Whereas the bill may indicate 40kl x R17, residential water is currently charged on a step tariff with the lowest tariff being R17 and the highest being R39 excl VAT. The tariff for water consumption will differ according to the usage of water and the classification of the property – in this case 40 units x R17.

5. Sewerage: The municipality charges you for safe disposal of human waste, waste from your washing, cooking etc. that goes into the municipal sewer network. The sewer charge for residential customers has two elements – i) a basic sewer charge which is based on property size, and ii) an additional fixed sewer charge that is based on a fixed 30kl deemed disposal per household each month multiplied by the tariff. Non-residential customers are charged for sewage disposal based on their average monthly water consumption in the previous financial year multiplied by the sewer tariff per customer category.

6. Refuse: A charge for the collection and disposal of solid waste material.

6.1 BAS. Refuse residential – Bins 240 litres: This amount is charged for the service that the municipality renders, that is, driving to your property weekly to pick up waste to dispose of it. (1×173) means (1 bin x R173). Residential properties are charged a fixed amount based on the number of bins supplied. Other property owners are charged based on the number of bins and type of refuse disposal method.

7. E: Electricity readings for the month taken from your meter(s).

8. W: Water readings for the month taken from your meter(s).

9. Deposit: The amount you paid when opening your municipal account. This figure remains the same until you sell your property.

10. Property valuation: The market value of your property in line with the municipal Valuation Roll.

11. Total now due: The amount of the balance brought forward, meaning the transactions processed in the current month minus any payments received. This amount is due in total on or before the due date indicated on the statement.

For further enquiries related to your monthly municipal statement or what appears on it, please send an email to customerservices@mogalecity.gov.za or get in touch with their call centre on 0861 664 253.

At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

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