Document

Report
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

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