Annual Levy, Rates & Tax Increases for 2020/2021: Water Charges, Property Rates, Sewer & Refuse Removal Costs
ADVERTISEMENT OF THE COUNCIL RESOLUTION PERTAINING TO LEVYING OF PROPERTY RATES 2020/2021
Mangaung Metropolitan Municipality in terms of section 14(3) (b) of the Local Government: Municipal Property Rates Act of 2004 (Act 6 of 2004) hereby notify all the rate payers owing properties within the jurisdiction of Mangaung Metropolitan Municipality that the Council meeting held on 30 June 2020 has passed a resolution on the levying of rates on properties; and the resolution is available at the Municipality’s Bram Fischer Building and satellite offices and libraries for public inspection during office hours and, the copy of the resolution is also available on the municipality’s official website: www.mangaung.co.za
The Council resolution on levying of rates shall be available for inspection from 1 July 2020 until 31 August 2020 during office hours 07:45 to 16:15.
Adv T Mea – City Manager
Below, please find important documents relevant to this Notice for download in PDF format:
- Notice: Council Resolution on Rates Increases for 2020/2021
- Credit Control Policy 2020/2021
- Indigent Policy 2020/2021
- Property Rates Policy 2020/2021
- Write-off Policy
MANGAUNG METROPOLITAN MUNICIPALITY: REVENUE AND EXPENDITURE ESTIMATES AND DETERMINATION OF PROPERTY RATES, SEWER CHARGES, REFUSE REMOVAL TARIFFS AND WATER TARIFFS
- Notice is hereby given in accordance with the provisions of section 81 (1) (c ) of the Local Government Ordinance No 8 of 1962 read with the stipulations of the Local Government Municipal Systems Act, No 32 of 2000, the Municipal Finance Management Act, No 56 of 2003, as well as the Local Government: Municipal Property Rates Act (no 6 of 2004) that a copy of the Municipal Estimates of Revenue and Expenditure for the financial year ending 30 June 2021 is open for inspection at the office of the Chief Financial Officer during office hours of the Mangaung Metropolitan Municipality.
- The tariffs below are a summary for ease of reference. For detailed information, please refer to the MTREF documents as it appears on the municipality’s official website.
- Notice is further given that the under-mentioned property rates, sewerage charges, refuse removal tariffs and water tariffs for the year ending 30 June 2021 are as follows, namely:
A. DETERMINATION OF PROPERTY RATES TARIFFS FOR THE 2020/2021 FINANCIAL YEAR
In terms of the relevant legislation the Mangaung Metropolitan Municipality at a meeting held on 30 June 2020, resolved to amend its Tariffs for Property Rates with effect from 1 July 2020 as follows:
Start date: 01 JULY 2020
End date: 30 JUNE 2021
- THAT in terms of Sections 2, 7, 8 and 14 of the Local Government: Municipal Property Rates Act 6 of 2004 (“the Act”), read with Sections 4(1)(c)(ii) and 11(3)(i) and 75A of the Local Government: Municipal Systems Act 32 of 2000, the following rates in the Rand BE LEVIED for the financial year 1 July 2020 to 30 June 2021, on the market value of property or on the market value of a right in property within the area of jurisdiction of the Council as appearing in the valuation roll, in respect of the various categories of properties set out below:
| Category | Rate in the Rand 2020/2021 |
| Residential Properties | 0.8432 |
| Business and Commercial Properties | 3.4634 |
| Industrial Properties | 3.4634 |
| Agricultural Properties: | |
| · Agricultural Farms Agricultural | 0.2109 |
| · Agricultural Farms Business | 3.4634 |
| · Agricultural Farms Industrial | 3.4634 |
| · Agricultural Farms Residential | 0.8432 |
| Agricultural Holdings: | |
| · Agricultural Holdings Agricultural | 0.2109 |
| · Agricultural Holdings Business | 3.4634 |
| · Agricultural Holdings Industrial | 3.4634 |
| · Agricultural Holdings Residential | 0.8432 |
| · Agricultural Holdings Vacant Residential | 0.8432 |
| · Agricultural Holdings Vacant Business | 3.4634 |
| Sectional Title Properties: | |
| · Sectional Title Residential | 0.8432 |
| · Sectional Title Business | 3.4634 |
| · Sectional Title Industrial | 3.4634 |
| · Sectional Title Places of Public Worship | 0.0000 |
| · Sectional Title Public Benefit Organisations | 0.0000 |
| · Sectional Title Vacant Residential | 0.8432 |
| · Sectional Title Vacant Business | 3.4634 |
| Mining Properties | 3.4634 |
| Public Service Purposes | 3.4634 |
| Government Properties | 3.4634 |
| Public Service Infrastructure | 0.2109 |
| Places of Public Worship | 0.0000 |
| Private Open Space | 0.8432 |
| Private Road | 0.8432 |
| Public Road | 3.4634 |
| Public Benefit Organisations | 0.0000 |
| Multi-Purpose Properties: | |
| · Multi-Purpose Agricultural Farms Residential | 0.8432 |
| · Multi-Purpose Business | 3.4634 |
| · Multi-Purpose Government | 3.4634 |
| · Multi-Purpose Mining | 3.4634 |
| · Multi-Purpose Municipal | 0.0000 |
| · Multi-Purpose Residential | 0.8432 |
| Municipal Properties | 0.0000 |
| Guest Houses | 3.4634 |
| Vacant Land: | |
| · Vacant Land Residential | 0.8432 |
| · Vacant Land Business | 3.4634 |
| · Vacant Land Industrial | 3.4634 |
2. That the rates levied in terms of paragraph 1 above SHALL BECOME DUE AND PAYBLE in twelve equal instalments on fixed days for twelve consecutive months, these being the due date stipulated in the account sent to the ratepayer.
3. That interest at the prime rate + 1% will BE CHARGED per month or part thereof on all arrear property rates at the applicable interest rate.
4. That in terms of Section 15(1)(b) of the Act read with Council’s Property Rates Policy, the Council grants, the following reduction in market value and rebates on the rate levied for the financial year 2020/2021 to any owner of ratable property in the following circumstances:
4.1. That in terms of section 17(h) of the Municipal Property Rates Act, No 6 of 2004, read in conjunction with the Council’s Property Rates Policy the impermissible value and reduction of the market value of a property assigned to the residential category in the valuation roll or supplementary valuation roll, BE DETERMINED as R 80 000.
4.2 Indigent household – Owner of residential property, registered in terms of Council’s approved indigent policy, BE REBATED 100% from amount levied on Property Rates
4.3 Age / Senior Citizen and disabled persons – That in addition to the reduction in 4.1 above and subject to requirements as set out in Council’s Rates Policy, an ADDITIONAL reduction of R170 000 on the market value of qualifying senior citizens and disabled persons BE GRANTED.
The applicant must:
i. be the registered owner of the property;
ii. produce a valid identity document;
iii. be at least 60 years of age upon application, approved disability grantee or approved medically boarded person;
iv. not be in receipt of an indigent assessment rate rebate;
v. reside permanently on the property as prescribed in Council’s Property Rates Policy;
vi. that the market value of the property does not exceed R 2 000 000 (Two million rand only);
4.4 Child headed households – That a child headed household registered in terms of Council’s approved rates policy, BE REBATED 100% from amount levied on Property Rates IF:
– The total monthly income from all sources does not exceed an amount equal to three state pensions as determined by the National Minister of Finance per month.
4.5 Agricultural – That an agricultural property as defined in terms of the Council’s approved rates policy BE LEVIED at the standard ratio of 1:0.25 of the tariff for residential properties and therefore an effective REBATE of 75% on the tariff for residential properties will apply. It should be noted that NO ADDITIONAL REBATES shall be granted if this rebate applies.
5. Public Service Infrastructure properties as defined under section 1 of the Municipal Property Rates Act 6 of 2004 read in conjunction with section 11(1)(b) and 17(1) be LEVIED at MARKET VALUE LESS 30%. That a Public Service Infrastructure property BE LEVIED at the standard ratio of 1:0.25 of the tariff for residential properties and therefore an effective REBATE of 75% on the tariff for residential properties will apply. The following Public Service Infrastructure properties are however excluded in terms of section 17 (1) (aA) and therefore is considered impermissible to levy rates:
a) National, provincial or other public roads on which goods, services or labour move across a municipal boundary;
b) Water or sewer pipes, ducts or other conduits, dams, water supply reservoirs, water treatment plans or water pumps forming part of a water or sewer scheme serving the public;
c) Railway lines forming part of a national railway system;
d) Runways, aprons and the air traffic control unit at national or provincial airports, including the vacant land known as the obstacle free zone surrounding these, which must be vacant for air navigation purposes;
e) A right registered against immovable property in connection with infrastructure mentioned in paragraphs a) to e) above.
6. Notwithstanding the requirements of the Council’s Property Rates Policy, the following categories of properties BE EXEMPTED from paying property rates:
6.1 Municipal Properties (Except where non-market related rental is applicable in which case the property is categorised according to its use (i.e. residential, business, etc.);
6.2 Properties owned by public benefit organisations and used for any specific public benefit activities as listed under Part 1 of the Ninth Schedule to the Income Tax Act, 1962 (Act 58 of 1962) and in adherence to the requirements of the Council’s Property Rates Policy;
6.3 Places of Public Worship.
B. DETERMINATION OF SEWERAGE DISPOSAL SERVICES TARIFFS FOR THE 2020/2021 FINANCIAL YEAR
In terms of the relevant legislation the Mangaung Metropolitan Municipality at a meeting held on 30 June 2020, resolved to amend its Tariffs for Sewerage Disposal Services with effect from 1 July 2020 as follows:
Start date: 01 JULY 2020 VAT EXCLUDED
End date: 30 JUNE 2021
The amounts due for waste water services for the 2020/2021 financial year BE PAID on dates as indicated on accounts which will be rendered from 1 July 2020.
The sewerage charges are linked to the market value of the property.
ALL TARIFFS LISTED BELOW, OR TO BE CALCULATED IN TERMS OF THIS SCHEDULE OF TARIFFS EXCLUDE VAT.
1. Charges will be levied for the financial year 1 July 2020 to 30 June 2021, on the market value of property or on the market value of a right in property within the area of jurisdiction of the Council as appearing in the valuation roll, in respect of the various categories of properties set out below:
| Category | Rate in the Rand 2020/2021 | Minimum Charges
Rand |
| Non-residential | 0.5408 | 170.82 per month |
| Residential | 0.3707 | 123.71 per month |
| Exempt | 0.0000 | 0.00 per month |
2. That the charges levied in terms of paragraph 1 above SHALL BECOME DUE AND PAYBLE in twelve equal instalments on fixed days for twelve consecutive months, these being the due date stipulated in the account sent to the ratepayer.
3. That interest at the prime rate + 1% will BE CHARGED per month or part thereof on all arrear sanitation charges at the applicable interest rate.
4. The minimum charges will only be applicable when the charges based on market value is below the minimum charges specified under paragraph 1 and is not exempt in terms of other sections within this document.
5. The following rebates and exemptions will apply in respect of sewerage charges: –
a. All residential properties with a market value of R 80 000.00 or less are exempted from paying of sewerage charges;
b. All residential properties using other levels of sanitation than waterborne shall pay according to the general tariff booklet when they apply for the emptying of septic tank or VIP;
c. The residential properties in the following areas are excluded from the payment of sewerage charges:
i. Bloemdustria
ii. Ribblesdale
iii. Bloemspruit
iv. Bainsvlei
v. Farms and Peri-Urban areas in Thaba Nchu.
6. The following special arrangements is in place with the following institutions: –
a. For churches, church halls and other places of similar nature, qualifying charitable institutions and welfare organizations a charge of R 150.46 will be levied per sanitary point per month;
b. For Martie du Plessis School, Dr Böhmer School, Lettie Fouchė School and schools of similar nature a charge of R 75.24 will be levied per sanitary point per month.
C. TARIFFS: WASTE MANAGEMENT SERVICES FOR THE 2020/2021 FINANCIAL YEAR
In terms of the relevant legislation the Mangaung Metropolitan Municipality at a meeting held on 30 June 2020, resolved to amend its Tariffs for Waste Management Services with effect from 1 July 2020 as follows:
Start date: 01 JULY 2020 VAT EXCLUDED
End date: 30 JUNE 2021
The amounts due for waste management services for the 2020/2021 financial year BE PAID on dates as indicated on accounts which will be rendered from 1 July 2020.
ALL TARIFFS LISTED BELOW, OR TO BE CALCULATED IN TERMS OF THIS SCHEDULE OF TARIFFS EXCLUDE VAT.
COLLECTION AND DISPOSAL TARIFFS
Charges shall be levied on and recovered from all consumers of the Councils Waste Management Services who utilized / requested the Councils Waste Management Services, such consumers shall include the owners and occupiers of the premises in respect of which the services are rendered and such charges shall be recoverable from such owners and occupiers jointly and severally. “Occupiers” and Owners as intended herein shall be as defined in the Waste Management By-laws as well as Credit Control and Debt Collection Policy of the Council.
Charges shall be levied per consumer as intended above in respect of each service point (as defined in the Waste Management Tariff policy and By-laws of the Council).
1. DOMESTIC REFUSE REMOVAL TARIFF
This tariff is applicable for all erven used for residential purposes.
The tariffs included under this item is limited to a maximum of one removal per week.
An additional fee will be charged for the costs associated with the type of service required as contained in the Tariffs booklet.
All residential properties with a market value of R 80 000.00 or less are exempted from paying refuse removal charges.
| Size of the Stand (Square meters) | Tariff per month 2020/2021 |
| 0 – 300 | 54.53 |
| 301 – 600 | 72.70 |
| 601 – 900 | 129.01 |
| 901 – 1500 | 185.85 |
| More than 1500 | 231.58 |
2. FLATS AND TOWNHOUSES PER UNIT
This tariff is applicable to all townhouses or flats.
The tariffs included under this item is limited to a maximum of one removal per week.
An additional fee will be charged for the costs associated with the type of service required as contained in the Tariffs booklet.
The collection by waste removal vehicles shall be done from one central point per flat or townhouse complex.
All residential properties with a market value of R 80 000.00 or less are exempted from paying refuse removal charges.
| Item | Tariff per month 2020/2021 |
| Per Unit | 129.01 |
3. DUET HOUSES AND PRIVATE TOWNS
This tariff is applicable to all duet houses and private towns.
The tariffs included under this item is limited to a maximum of one removal per week.
An additional fee will be charged for the costs associated with the type of service required as contained in the Tariffs booklet.
All residential properties with a market value of R 80 000.00 or less are exempted from paying refuse removal charges.
| Size of the Stand (Square meters) | Tariff per month 2020/2021 |
| 0 – 300 | 54.53 |
| 301 – 600 | 72.70 |
| 601 – 900 | 129.01 |
| 901 – 1500 | 185.85 |
| More than 1500 | 231.58 |
4. BUSINESSES, COMMERCIAL AND INDUSTRIAL
This tariff is applicable to all businesses, commercial and industrial entities.
The tariffs included under this item is limited to a maximum of one removal per week.
| Frequency of removal | Tariff per month 2020/2021 |
| Non-Bulk | 297.03 |
| Bulk | 297.03 |
For Bulk entities an additional fee will be charged for landfill costs as well as costs associated with the type of service required as contained in the Tariffs booklet.
5. EXEMPT PROPERTIES
The following properties will be EXEMPT from paying refuse charges:
a. No refuse will be levied on garages and gardens if separately registered as a sectional title unit in the Deeds Office;
b. Specified municipal properties as registered in the name of Mangaung Metropolitan Municipality;
c. Any other exempt properties.
6. SPECIAL ARRANGEMENTS
The following special arrangements is in place with the following institutions:
a. For churches, church halls and other places of similar nature, qualifying charitable institutions and welfare organizations a charge of R 53.37 will be levied per refuse point per month
b. For Martie du Plessis School, Dr Böhmer School, Lettie Fouchė School and schools of similar nature a charge of R 26.69 will be levied per refuse point per month.
D. Tariffs: Water Supply Services and Incidental Charges
In terms of the relevant legislation the Mangaung Metropolitan Municipality at a meeting held on 30 June 2020, resolved to amend its Tariffs for Water Supply and Incidental Charges with effect from 1 July 2020 as follows:
Start date: 01 JULY 2020 VAT EXCLUDED
End date: 30 JUNE 2021
1. TARIFFS: WATER SUPPLY AND INCENDENTAL CHARGES
The amounts due for water services for the 2020/2021 financial year to be affected on dates as indicated on accounts which will be rendered from 1 July 2020.
Reference to “per month” in the tariffs is based on a meter reading period of 30,4375 days regarding the calculation of a charge for the free consumption portion.
Use is the determining factor for tariff application but where a mixed use occurs on any given property, the property zoning will be the determining factor in the tariff application
ALL TARIFFS LISTED BELOW OR TO BE CALCULATED IN TERMS OF THIS SCHEDULE OF TARIFFS EXCLUDE VAT.
2. WATER TARIFFS
Charges shall be levied in respect of each separate connection for water (as defined in the Water Supply By-laws and Credit and Debt Collection Policy of the Council). It is further noted that the tariffs effective to consumption as from 01 July 2020 and accounts as from those generated in July 2020 on a pro rata basis where applicable, will be levied.
All the tariffs are applicable to prepaid water meters as well except where specifically excluded.
Where prepaid water meters are installed, a percentage in accordance with the debt collection and credit control policy of the vended amount will go towards the settlement of any other outstanding debts owed by that property. This percentage may be increased to achieve the objectives as set out in the Debt Collection and Credit Control Policy.
3. CONSUMPTION TARIFFS
3.1 Household Use
Sport Clubs
Flats, Townhouses, Duets
The tariffs listed in this item shall be payable where water, used solely for household purposes or sport clubs, has been supplied.
For Flats, Townhouses, Duets and other similar types of improvements the total units consumed is divided by the number of consumers (Flats, Townhouses, Duets, etc.) as per the sliding scale below for household use.
Sports clubs referred to in this segment are only those that were incorporated in the Council’s Sport Club Scheme. If not, these are to be treated as a business.
If a small business is conducted as a primary right in terms of a Town Planning Scheme from a property used for household purposes, and the connection size is either a 15mm or 20mm connection, the tariffs in the table below shall apply. However, any connection which is greater than 20mm and the property is not exclusively used for residential purposes, shall be charged in terms of the tariffs as detailed in 3.5 below.
All registered indigent account holders will be granted a total of 6 kl free basic consumption subject to the stipulations of the Council’s indigent policy.
Consumption charges:
| Tariff Structure | Tariff R/kl 2020/21 |
| 0 – 6 kl / month | 9.66 |
| 7 – 15 kl / month | 22.72 |
| 16 – 30 kl / month | 25.23 |
| 31 – 60 kl / month | 29.69 |
| 61 or more kl / month | 34.43 |
Availability (fixed) charges:
| Tariff Structure | Tariff 2020/21 |
| Applicable to all water meters for users as per 3.1, except for households where the market value of the property is below R 80 000 or for prepaid water meters. | 34.00 |
3.2 Informal settlements
| Tariff Structure | Tariff R/kl 2020/21 |
| This item is applicable in cases where stands units are supplied by means of a standpipe (no stand connection available). | 0.00 |
3.3 Sewerage Effluent
3.3.1 Purified Sewerage Effluent
| Tariff Structure | Tariff R/kl 2020/21 |
| Fixed rate per kl / month | 2.21 |
3.3.2 Raw Sewerage Effluent
| Tariff Structure | Tariff R/kl 2020/21 |
| Fixed rate per kl / month | 1.92 |
3.4 Unmetered and/or Unread Connections
Tariffs payable in respect of un-metered connections where the Water Supply By-laws of the Council do not provide an alternative method for calculating consumption or estimating consumption for purposes of interim charges: –
3.4.1 Household use:
Any premises, including vacant stands, where Council Water Supply is available, but the supply is not directly connected to the Council’s water reticulation system, the monthly minimum basic charge below will be levied until such time that the relevant premises including vacant stands, have been connected where after the tariff sliding scale in item 3.1 will apply.
| Tariff Structure | Tariff 2020/21 |
| Fixed rate per month. | 49.46 |
3.4.2 Business and other uses not included in items 3.1, 3.2, 3.4.1, 3.5, 3.8 and 3.9:
Businesses and other
Any premises, including vacant stands, where Council Water Supply is available, but the supply is not directly connected to the Council’s water reticulation system, the monthly minimum basic charge below will be levied until such time that the relevant premises including vacant stands, have been connected where after the tariff sliding scale in item 3.5 will apply.
| Tariff Structure | Tariff 2020/21 |
| Fixed rate per month. | 1490.25 |
3.5 Business and Other Uses:
Businesses
Schools and Churches
Industries
South African Defense Force
Combination meters
These tariffs apply to e.g. the following uses: business, commercial, industrial, government, mining, schools, crèches, sport clubs including sport clubs whose lease agreements with Council have expired, private hostels, private hospitals and clinics, agriculture, temporary connections for building or business use.
New developments will be charged at the business tariff rate as specified under this item for the duration of the development. After the development is complete, the property or properties will be charged at the rate as applicable to the category of the property that was developed.
Consumption charges:
| Tariff Structure | Tariff R/kl 2020/21 |
| 0 – 60 kl / month | 24.67 |
| 61 – 100 kl / month | 30.85 |
| 101 or more kl / month | 35.99 |
Availability (fixed) charges:
| Tariff Structure | Tariff 2020/21 |
| Fixed rate per month.
Applicable to all meters noted under item 3.5 except tariff WA0101 |
786.60 |
3.6 Private Internal Water Leaks
In case of exceptionally high meter readings of water consumption, due to leaks from a private internal pipeline, the General Manager: Revenue Management or his nominee, may determine that the excess consumption be levied at R14.00 per kiloliter for a maximum period of 91 days, the commencement date of such period to be determined in the entire discretion of the said General Manager. A reduction in consumption is required as well as proof of the leak been rectified as substantiated by a plumber’s invoice or affidavit from the consumer which must be submitted to the municipality within 90 days after repair of the leak. This is only applicable to residential consumers.
3.7 Fire meters
A Fire meter is installed when there is an existing fire connection pipe which is not metered. This meter is intended to measure water consumption when the owner of the property experiences a fire challenge.
| Tariff Structure | Tariff R/kl 2020/21 |
| Fixed rate per kl / month | 27.66 |
3.8 Municipal Departmental:
Exclusive of VAT
Inclusive of VAT
These include the charges for the consumption of water between municipal properties to record interdepartmental charges between the different Directorates of Council.
| Tariff Structure | Tariff R/kl 2020/21 |
| Fixed rate per kl / month | 56.52 |
3.9 Indigent Households:
The tariffs under this item is applicable to all registered indigents as per the Council’s indigent policy.
All registered indigent account holders will be granted a total of 6 kl free basic consumption subject to the stipulations of the Council’s indigent policy.
Consumption charges:
| Tariff Structure | Tariff R/kl 2020/21 |
| 0 – 6 kl / month | 0.00 |
| 7 – 15 kl / month | 22.72 |
| 16 – 30 kl / month | 25.23 |
| 31 – 60 kl / month | 29.69 |
| 61 or more kl / month | 34.43 |
Availability (fixed) charges:
| Tariff Structure | Tariff 2020/21 |
| Applicable to all water meters for users as per 3.1, except for households where the market value of the property is below R 80 000 or for prepaid water meters. | 0.00 |
3.10 Boreholes
A borehole, for the purposes of this document, is a narrow shaft bored in the ground, either vertically or horizontally which is used primarily for the extraction of water.
This tariff will apply to all categories of properties as noted in item 3, except for item 3.2, 3.6 and 3.9.
This tariff will apply to all properties with a borehole as noted above irrespective of whether a water connection has been made to the property.
| Tariff Structure | Tariff 2019/20 | Tariff 2020/21 |
| Fixed rate per month. | 89.60 | 98.56 |