Transcript Document
Drakenstein Municipality BULK INFRASTRUCTURE CONTRIBUTION LEVY (BICL’S) Background information Pre Year 2000: Wellington Municipality had development contributions for Water & Sewer as part of their tariffs. Paarl Municipality negotiated with developers for upgrading of infrastructure. Post Year 2000: Paarl and Wellington amalgamated in late 2000 and adopted the contributions into it’s tariffs. The new Drakenstein Municipality applied the BICL’s for subdivisions, group housing, private residential flats and any development that may place an additional burden on the system. The services on which contributions were charged increased to: Water, Sewer, Stormwater, Roads, Electricity. The criteria for charging the BICL’s were: 1. Market value of property = R 120 000 (minimum fee/service). 2. Market value of property = R 240 000 + (maximum fee/service). 3. Pro rata levy is payable for units between R 120 000 – R 240 000. 4. Market value of the property is defined as: Residential erven: Market value of the erf Flats/Group housing: Market value of the unit Year 2010 GAP Housing received 40% discount on there BICL’s payable. Year 2011 Drakenstein Municipality appointed Vela VKE to re –evaluate our policy inline with other municipalities Current vs New Current Policy(Subdivision) 1. 2. 3. 4. 5. For the subdivision of a residential property of ±1020m² into portion A ( 315m²), portion B (270m²), portion C (225m²) and Remainder (208m²). Property value of the site is R 564 000.00 Property value of the portion is R 288 601.04 Tariff as per 2013/2014 financial year is R 8089.00 vat incl. per service. Cost per erf is R 8089.00 x 5(services) = R 40 445.00 vat incl. Total BICL’s is calculated as R 8089 x 5(services) x 3 units= R 121 335.00 vat incl. Current vs New Current Policy(Group Housing) 1. 2. 3. 4. 5. For a new development from agricultural with 1 homestead (4.67ha) to 193 residential units (3.22ha). A GAP housing project which receives 40% discount on BICL’s. Property value of each portion is R 240 000 + BICL tariff as per 2013/2014 financial year is R 8089.00 vat incl. GAP discount is 40%. Cost per unit is R 8089.00 x 5 x 0.4 = R 16 178.00 vat incl. BICL’s is calculated as (R 8089 x 5(services) x 40%) x 193 units = R 3 122 354 vat incl Current vs New Proposed New Policy For the subdivision of a residential property of ±1020m² into portion A ( 315m²), portion B (270m²), portion C (225m²) and Remainder (208m²). Water Module Existing CALCULATION OF CONTRIBUTION CALCULATION OF DEMAND UserType Unit Single Residential stand area > 500m2(Med/ High Income) TOTAL erf Land Area Total to be Number SocioDEM Sustain developed Averag of Units in Econo AND ability Municipal Area with e area Developm mic Factor proposed GLA (m2) per Unit (kl/d ent Factor Land Use (where unit Demand ay) m2 applicable) (m2) (kl/day) 1 1020- 1020 1.9 1 1.9 - - - - - - - - - - - - - - 1.9 Paarl, Mbekwini, 1Wellington Paarl, Mbekwini, Wellington Paarl, Mbekwini, Wellington Bulk Service Contribution Payable ( R) R 23 743 R 23 743 Current vs New Water Module New CALCULATION OF CONTRIBUTION CALCULATION OF DEMAND UserType Unit Single Residential stand area < 500m2(Med/ High Income) Single Residential stand area < 500m2(Med/ High Income) Single Residential (Low Income) erf 1 317 0 317 Total Bulk DEM Socio- Sustaina Service AND Economi bility Municipal Area Contributio (kl/d c Factor Factor n Payable ay) ( R) 1.2 1.2 1 erf 1 270- 270 1.2 1.2 0.6 erf 1 225- 225 0.6 0.6 0.6 TOTAL Land Area Number to be of Units developed Averag in with e area Unit Developm proposed GLA (m2) per Deman ent Land Use (where unit d m2 applicable) (m2) (kl/day) - - - - 3.0 Paarl, Mbekwini, 1 Wellington R 15 110 - Paarl, Mbekwini, 1 Wellington R 9 066 Paarl, Mbekwini, 1 Wellington R 4 533 Paarl, Mbekwini, Wellington R 28 710 Current vs New Summary for subdivision for 3 additional units Service Bulk Services Bulk Services Nett BSC Contribution New Land Contribution Existing PAYABLE (R) Use (R) Excl VAT Land Use (R) Excl VAT Excl VAT Water R 28 710 R 23 743 Sanitation R 31 544 R 17 524 Storm water R 4 213 R 8 821 Roads R 13 907 R 7 726 Solid Waste R 6 035 R 3 353 Electricity R 104 992 R 74 994 TOTAL BULK SERVICE CONTRIBUTION PAYABLE Current BICL'S R 4 967 R 24 267.00 R 14 019 R 24 267.00 R 0 R 24 267.00 R 6 181 R 24 267.00 R 2 682 R 0.00 R 29 998 R 24 267.00 R 57 847 R 121 335.00 No of units 3 3 3 3 3 Current vs New For a new development from agricultural with 1 homestead (4.67ha) to 193 residential units (3.22ha). A GAP housing project which receives 40% discount on BICL’s. Sewer Module Existing CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION User Type Unit Agricultural small holdings ha - TOTAL Land Area Number to be Total of Units developed SocioDISCH Sustainabi 2 in Economic with GLA (m ) Unit ARGE lity Factor Develop proposed (where Discharg Factor (kl/day) ment Land Use applicable e m2 ) (kl/day) 4.67 46700 0 - 0.8 - 1 3.7 - 3.7 - Municipal Area Paarl, Mbekwini, 1 Wellington Paarl, Mbekwini, Wellington Bulk Service Contribution Payable ( R) R 81 839 R 81 839 Current vs New Sewer Module New CALCULATION OF CONTRIBUTION CALCULATION OF DEMAND UserType Single Residential (GAP Housing) Road Reserves Sports, Recreation & Parks TOTAL Land Area to be Total Number of developed SocioSustain DISCHA Units in Economic ability with RGE Development proposed GLA (m2) Factor Factor Unit (kl/day) Land Use (where Discharge Unit m2 applicable) (kl/day) 0.5 96.5 0.6 14500 - 0.0 0.0 0.6 1200 - 1.0 0.1 96.6 0.6 erf 193 31000 ha 1.45 ha 0.12 0 Municipal Area Paarl, Mbekwini, 1 Wellington Paarl, Mbekwini, 1 Wellington Paarl, Mbekwini, 1 Wellington Bulk Service Contribution Payable ( R) R 1 268 324 R R R 1 577 1 269 901 Current vs New Summary for new Group Housing Service Bulk Services Bulk Services Nett BSC No of Contribution New Land Contribution Existing PAYABLE (R) Current BICL'S units Use (R) Excl VAT Land Use (R) Excl VAT Excl VAT Water R 878 522 R 117 610 R 760 912 R 624 470.80 Sanitation R 1 269 901 R 81 839 R 1 188 062 R 624 470.80 Storm water R 355 708 R 201 940 R 153 768 R 624 470.80 Roads R 596 461 R 7 726 R 588 735 R 624 470.80 Solid Waste R 164 959 R 25 052 R 139 906 R 0.00 Electricity R 17 405 621 R 416 634 R 16 988 988 R 624 470.80 TOTAL BULK SERVICE CONTRIBUTION PAYABLE R 19 820 372 R 3 122 354.00 193 193 193 193 193