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: Market value of property = R 120 000 (minimum fee/service). Market value of property = R 240 000 + (maximum fee/service). Pro rata levy is payable for units between R 120 000 – R 240 000. 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 Policy(Subdivision) 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). 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 Policy(Group Housing) 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 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 DEMAND CALCULATION OF CONTRIBUTION UserType Unit Number of Units in Development Land Area to be developed with proposed Land Use m2 GLA (m2) (where applicable) Average area per unit (m2) Unit Demand (kl/day) Total DEMAND (kl/day) Socio-Economic Factor Sustainability Factor Municipal Area Bulk Service Contribution Payable ( R) Single Residential stand area > 500m2(Med/ High Income) erf 1 1020 - 1.9 Paarl, Mbekwini, Wellington R 23 743 TOTAL R 23 743

Current vs New Water Module New UserType Unit   CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION UserType Unit Number of Units in Development Land Area to be developed with proposed Land Use m2 GLA (m2) (where applicable) Average area per unit (m2) Unit Demand (kl/day) Total DEMAND (kl/day) Socio-Economic Factor Sustainability Factor Municipal Area Bulk Service Contribution Payable ( R) Single Residential stand area < 500m2(Med/ High Income) erf 1 317 1.2 Paarl, Mbekwini, Wellington R 15 110 270 - 0.6 R 9 066 Single Residential (Low Income) 225 R 4 533 TOTAL 3.0 R 28 710

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 Water R 28 710 R 23 743 R 4 967 R 24 267.00 3 Sanitation R 31 544 R 17 524 R 14 019 Storm water R 4 213 R 8 821 R 0 Roads R 13 907 R 7 726 R 6 181 Solid Waste R 6 035 R 3 353 R 2 682 R 0.00   Electricity R 104 992 R 74 994 R 29 998 TOTAL BULK SERVICE CONTRIBUTION PAYABLE R 57 847 R 121 335.00

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 Number of Units in Development Land Area to be developed with proposed Land Use m2 GLA (m2) (where applicable) Unit Discharge (kl/day) Total DISCHARGE (kl/day) Socio-Economic Factor Sustainability Factor Municipal Area Bulk Service Contribution Payable ( R) Agricultural small holdings ha 4.67 46700 0.8 3.7 1 Paarl, Mbekwini, Wellington R 81 839 - TOTAL R 81 839

Current vs New Sewer Module New UserType Unit   CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION UserType Unit Number of Units in Development Land Area to be developed with proposed Land Use m2 GLA (m2) (where applicable) Unit Discharge (kl/day) Total DISCHARGE (kl/day) Socio-Economic Factor Sustainability Factor Municipal Area Bulk Service Contribution Payable ( R) Single Residential (GAP Housing) erf 193 31000 0.5 96.5 0.6 1 Paarl, Mbekwini, Wellington R 1 268 324 Road Reserves ha 1.45 14500 - 0.0 R - Sports, Recreation & Parks 0.12 1200 1.0 0.1 R 1 577 TOTAL 96.6 R 1 269 901

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 Water R 878 522 R 117 610 R 760 912 R 624 470.80 193 Sanitation R 1 269 901 R 81 839 R 1 188 062 Storm water R 355 708 R 201 940 R 153 768 Roads R 596 461 R 7 726 R 588 735 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 TOTAL BULK SERVICE CONTRIBUTION PAYABLE R 19 820 372 R 3 122 354.00