Municipal bills often leave residents a little uncertain about the contents.
Following a number of requests from ratepayers, the Newcastle Advertiser asked Director of Financial Management, Asha Haripersad to explain two common items listed on rates bills.
Suspense account
Although it was difficult for her to give a precise explanation without a specific account to consult, Haripersad said the ‘suspense account’ line on a bill often denoted a payment to the municipality which was not specified.
This could include sundry income or over-payment by a consumer.
“In December, we often get people who pay the next month’s account before going on holiday and put a lump sum into our account. This is credited on their following bill.”
Availability charges
Another common query from residents is why they pay availability charges.
Haripersad explained both electricity and water carried these charges as a fixed amount, and this related to infrastructure and access to services. Availability is charged to factor in maintenance and to ensure supply of services.
In conclusion, Haripersad revealed the municipality hoped to have a new set of simplified statements (rates bills) by the start of the new financial year on July 1.
“We are looking at making municipal statements easier to understand because they include many complex line items,” she concluded.
She urged residents to approach the municipality if they had any queries relating to their municipal bills.
ORIGINAL STORY: 50% increase on residents’ home valuations
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Email: Reveshni Douglas (Editor) at reveshni@caxton.co.za
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