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Drakenstein Municipality

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.

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Drakenstein Municipality

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  1. Drakenstein Municipality Bulk Infrastructure Contribution Levy (BICL’s)

  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 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

  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). • 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.

  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 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

  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

  6. Current vs New • Water Module New

  7. Current vs New • Summary for subdivision for 3 additional units

  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 BICL’s. • Sewer Module Existing

  9. Current vs New • Sewer Module New

  10. Current vs New • Summary for new Group Housing

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