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BULK INFRASTRUCTURE CONTRIBUTION LEVY (BICLS) Drakenstein Municipality.

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Presentation on theme: "BULK INFRASTRUCTURE CONTRIBUTION LEVY (BICLS) Drakenstein Municipality."— Presentation transcript:

1 BULK INFRASTRUCTURE CONTRIBUTION LEVY (BICLS) Drakenstein Municipality

2 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 its tariffs. The new Drakenstein Municipality applied the BICLs 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 BICLs 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 BICLs payable. Year 2011 Drakenstein Municipality appointed Vela VKE to re –evaluate our policy inline with other municipalities

3 Current vs New Current Policy(Subdivision) For the subdivision of a residential property of ±1020m² into portion A ( 315m²), portion B (270m²), portion C (225m²) and Remainder (208m²). 1. Property value of the site is R 564 000.00 2. Property value of the portion is R 288 601.04 3. Tariff as per 2013/2014 financial year is R 8089.00 vat incl. per service. 4. Cost per erf is R 8089.00 x 5(services) = R 40 445.00 vat incl. 5. Total BICLs is calculated as R 8089 x 5(services) x 3 units= R 121 335.00 vat incl.

4 Current vs New Current Policy(Group Housing) 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 BICLs. 1. Property value of each portion is R 240 000 + 2. BICL tariff as per 2013/2014 financial year is R 8089.00 vat incl. 3. GAP discount is 40%. 4. Cost per unit is R 8089.00 x 5 x 0.4 = R 16 178.00 vat incl. 5. BICLs is calculated as (R 8089 x 5(services) x 40%) x 193 units = R 3 122 354 vat incl

5 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 DEMAND CALCULATION OF CONTRIBUTION UserType Unit Number of Units in Developm ent Land Area to be developed with proposed Land Use m 2 GLA (m 2 ) (where applicable) Averag e area per unit (m 2 ) Unit Demand (kl/day) Total DEM AND (kl/d ay) Socio- Econo mic Factor Sustain ability Factor Municipal Area Bulk Service Contribution Payable ( R) Single Residential stand area > 500m2(Med/ High Income)erf11020- 1.9 11 Paarl, Mbekwini, Wellington R 23 743 - ------ Paarl, Mbekwini, Wellington - - ------ - TOTAL 1.9 R 23 743

6 Current vs New Water Module New CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION UserType Unit Number of Units in Developm ent Land Area to be developed with proposed Land Use m 2 GLA (m 2 ) (where applicable) Averag e area per unit (m 2 ) Unit Deman d (kl/day) Total DEM AND (kl/d ay) Socio- Economi c Factor Sustaina bility Factor Municipal Area Bulk Service Contributio n Payable ( R) Single Residential stand area < 500m2(Med/ High Income)erf13170 1.2 11 Paarl, Mbekwini, Wellington R 15 110 Single Residential stand area < 500m2(Med/ High Income)erf1270- 1.2 0.61 Paarl, Mbekwini, Wellington R 9 066 Single Residential (Low Income)erf1225- 0.6 1 Paarl, Mbekwini, Wellington R 4 533 - ------ Paarl, Mbekwini, Wellington - TOTAL 3.0 R 28 710

7 Current vs New Summary for subdivision for 3 additional units Service Bulk Services Contribution New Land Use (R) Excl VAT Bulk Services Contribution Existing Land Use (R) Excl VAT Nett BSC PAYABLE (R) Excl VAT Current BICL'S No of units WaterR 28 710R 23 743R 4 967R 24 267.003 SanitationR 31 544R 17 524R 14 019R 24 267.003 Storm waterR 4 213R 8 821R 0R 24 267.003 RoadsR 13 907R 7 726R 6 181R 24 267.003 Solid WasteR 6 035R 3 353R 2 682R 0.00 ElectricityR 104 992R 74 994R 29 998R 24 267.003 TOTAL BULK SERVICE CONTRIBUTION PAYABLER 57 847R 121 335.00

8 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 BICLs. Sewer Module Existing CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION User Type Unit Number of Units in Develop ment Land Area to be developed with proposed Land Use m 2 GLA (m 2 ) (where applicable ) Unit Discharg e (kl/day) Total DISCH ARGE (kl/day) Socio- Economic Factor Sustainabi lity Factor Municipal Area Bulk Service Contribution Payable ( R) Agricultural small holdingsha4.674670000.83.711 Paarl, Mbekwini, Wellington R 81 839 - ----- Paarl, Mbekwini, Wellington - TOTAL 3.7 R 81 839

9 Current vs New Sewer Module New CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION UserType Unit Number of Units in Development Land Area to be developed with proposed Land Use m 2 GLA (m 2 ) (where applicable) Unit Discharge (kl/day) Total DISCHA RGE (kl/day) Socio- Economic Factor Sustain ability Factor Municipal Area Bulk Service Contribution Payable ( R) Single Residential (GAP Housing)erf1933100000.596.50.61 Paarl, Mbekwini, Wellington R 1 268 324 Road Reservesha1.4514500-0.0 0.61 Paarl, Mbekwini, Wellington R - Sports, Recreation & Parksha0.121200-1.00.10.61 Paarl, Mbekwini, Wellington R 1 577 TOTAL 96.6 R 1 269 901

10 Current vs New Summary for new Group Housing Service Bulk Services Contribution New Land Use (R) Excl VAT Bulk Services Contribution Existing Land Use (R) Excl VAT Nett BSC PAYABLE (R) Excl VAT Current BICL'S No of units WaterR 878 522R 117 610R 760 912R 624 470.80193 SanitationR 1 269 901R 81 839R 1 188 062R 624 470.80193 Storm waterR 355 708R 201 940R 153 768R 624 470.80193 RoadsR 596 461R 7 726R 588 735R 624 470.80193 Solid WasteR 164 959R 25 052R 139 906R 0.00 ElectricityR 17 405 621R 416 634R 16 988 988R 624 470.80193 TOTAL BULK SERVICE CONTRIBUTION PAYABLER 19 820 372R 3 122 354.00


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