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New Tariffs and Rates for City of Johannesburg

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					New Tariffs and Rates for City of Johannesburg                                                     August 2009
Principally Residential / Domestic Tariffs Only                                            Effective 1 July 2009
Charges reflected per month and in Rands.
Residents are advised to check the City Buzz regularly. See the <www.joburg.org.za> website for more details
Only the principal tariffs applicable to residents are given except where others are provided for comparison .
1. Water Domestic
 Residential (domestic) metered consumption                                  Previously deemed consumption areas
                                                                             now fitted with pre-payment meters
                                                                             Water                 Sanitation
    Usage in kl          2007         2008 % INCR 2009 % INCR                2008       2009         2008         2009
 0 to 6                free       free           0.00    free                free       free         free         free
 7 to 10                   4.40        4.40      0.00    4.66      5.8%      3.40       3.60         1.90         2.01
 11 to 15                  5.90        6.26      6.20    6.82      8.8%      4.24       4.35         2.20         2.39
 16 to 20                  7.40        7.93      7.20    8.79     10.8%      6.64       7.29         3.72         4.12
 20 to 30                  8.80        9.52      8.20 10.64       11.8%      9.20       10.19        5.25         5.87
 30 to 40                  8.80        9.60      9.20 10.84       12.8%      9.28       10.38        5.30         5.98
 >40                      10.40      11.46      10.20 13.04       13.8%      11.46      12.93        6.44(41-50)  7.33
                                                                                                     8.52(>50kl)  9.7
Schools R8.66 (2008) per kl of water consumption where a single metering point is provided
Expanded Social Package. The City has modified its approach to the Expanded Social Package and has introduced
a points system which ends up in three bands of poverty level. In the lowest band the free allowance is increased to
15kl per month, in the middle bracket to 12, for the highest bracket it remains at 10kl.
Industrial in 2008 11.25c/kl ; in 2009 : 12.69c/kl up to 200 kl , and 12.8c/kl for >200kl
Note 1 In the case of multiple dwellings, with a single metering point, where the number of units can be established,
the average consumption will be used to determine the applicable tariff line, and the free basic water to be included
in the levy to the body corporate as applicable. (Ensure that the accounts Department at the JW Depot for your area
has the correct details)
Example a townhouse complex with 10 units consumes 100 kl. would be charged as a single consumer R1093.69
(i.e. first step 6kl @ nil;+ second step 4 kl @ R4.66;+ 5 kl @ R6.82; + 5 @ R8.79; + 10 @ R10.64; + 10 @ R10.84 +
60 @ R13.04.). Instead it should be charged on the average rate , i.e. 100kl/10 i.e. for 10 kl ; the charge should be
R18.64 x 10 units = R186.40. Each unit gets the 6kl free , and 4 units at R4.66/kl.
2. Domestic Sanitation
  Note 1 These tariffs apply to a single dwelling unit on a stand and to multiple units. In the case of multiple units the
  average erf size will be established, and will apply to all the units with a minimum of R129.00 per unit. For blocks of
  flats the tariff is R66.27 per unit per month. Otherwise the tariff is R9.77/kl based on the water consumption.
  Note 2 In previously deemed consumption areas now fitted with pre-payment water meter connections the
  domestic sanitation tariff is based on the water consumption in steps : for details see the table above in para 1).
    Stand Size in Sqm           2007        2008     % INCR         2009        %INCR Schools & Institutions:
  0 to 300                       54.30       58.75       8.20 66.27            12.8        in 2008 8.22/kl ;
  301 to 1000                   105.70 114.37            8.20 129.00           12.8        in 2009 : R9.27 up to 200 kl
                                                                                           and R9.35 for > 200kl
  1001 to 2000                  159.90 173.01            8.20 195.16           12.8
  2001 and greater              230.40 249.29            8.20 281.00           12.8
3. Domestic Refuse Removal
  Note 1.These tariffs apply to a single dwelling unit on a stand or to a townhouse unit or to a flat and the owner will be
  billed directly. A full service will be provided for each unit as arranged with Pikitup.
  Note 2. A full monthly collection tariff will be levied for each additional service i.e. for more than one bin.
  Note 3 For non-domestic properties, the City Cleaning levy, i.e. the waste removal charge from Pikitup is in 4 steps
  from R90 per bin for property values < R2m, R130 for R2m to R5m, R195 for R5m to R10m , R330 for R10m to R30m.
      Property Value         Tariff & City Cleaning levy 2008   Tariff 2009   %INCR     Schools, hostels and
Less than R100 000                 free                    na                 na        institutions such as retirement
                                                                   free
                                                                                        villages, churches, and
R100 000 to R150 000               free                    na      R60        na        registered welfare Orgs
R150 001 to R300 000              50.00                 10.00      R65        8.5%      R55.00 per bin
R300 000 to R500 000              60.00                 10.00      R76        8.6%      The City cleaning levy has
                                                                                        been included in the 2009 tariff
R500 000 to R700 000              70.00                 10.00      R87        8.8%
                                                                                        and will not be billed
R700 000 to R1, 5m                80.00                 10.00      R113       26%       separately.
Greater than R1, 5m              120.00                 10.00      R159       22%
4. New Tariffs for Electricity for City of Johannesburg as approved
by NERSA
(When this notice was sent out in April before NERSA had pronounced on the application from City Power
the increases then applied for and approved by the Council were reflected. NERSA has now approved and
changed some of these which have been revised accordingly. In respect of the lifeline tariff increases the
increase to 15% remains as a proposal and will only be presented to the Council for approval later in
August , and the Council approved increases of 7,5% were implemented as from the 1st July)

 Charges reflected as Rand per month for fixed charges, or cents per kWh for energy . Seasonal tariffs are
 available, to be applied for, for conventionally metered domestic properties. These as well as the tariffs for business,
 agricultural , and industrial consumers are not given on this sheet - see the website < http://www.city power.co.za>
 Domestic 1. Lifeline Pre-paid Tariff                             2007         2008      % incr      2009          % incr
 consumption is < 300 kwh FBE (Free Basic Electricity)           50kWh       100kWh                100 kWh Note 2
 per mth                        Energy charge only (c/kWh)        43.23        49.37     14.20       56.78       15%Note3
 consumption is <500 kWh FBE                                        nil         nil                    nil           nil
 and >301 kwh per mth           Energy charge only (c/kWh)        43.23        49.37     14.20       53.07       15%Note3

 Domestic 2 Lifeline Tariff Conventional Meter provided
 consumption is <300 kwh FBE                              50kWh         100kWh         %incr    150 kWh Note 2
 per mth                     Energy charge only (c/kWh)        43.23        52.01 20.3          59.81   15%Note3
 Usage is <500 kWh and       FBE                          nil           nil                     nil
 >301 kwh see Note1          Energy charge only (c/kWh)        45.54        52.01 20.3          59.81   15%Note3
Note 1: Consumption above 500 kWh occasions a switch to the 3-Part tariff details below
Note 2: The Expanded Social Policy gives FBE up to 100 kWh for indigents as per the scale of benefits
Note 3 An increase of 7.5% was applied for and implemented. Approval was granted for 15%.

Domestic 3- Part Tariff (Service + Network + energy charge) Single Phase Connection
                                                  Rating     2007         2008         %incr        2009     %incr
 Fixed (service) charge Rands/mth (including         60A      121.99       147.12       20.60       226.56   54%
 any network charge)                                 80A      127.63       153.92       20.60       237.04   54%
 Energy charge c/kWh cons 0 < 500 kWh            60/80A 47.38               39.82       20.59       47.38    19%Note 1
                        cons 501<1000 kWh     The proposals made in 2008 for a stepped              48.18    21%Note 2
                        cons 1001<2000 kWh    tariff were never approved by the NERSA               48.98    23%Note 3
                        cons 2001<3000 kWh    and are therefore not listed. The base rate of        50.17    26%Note 4
                                              39.82c applied. A stepped tariff has been
                        cons > 3001 kWh       approved for 2009-10                                  50.77    27.5Note 5
Note 1 An increase of 51% was applied for but approval was granted only for 19%
Note 2 An increase of 53.64% was applied for but approval was granted only for 21%
Note 3 An increase of 59.89% was applied for but approval was granted only for 23%
Note 4 An increase of 63.78% was applied for but approval was granted only for 26%
Note 5 An increase of 65.75% was applied for but approval was granted only for 27.5%
Domestic 3- Part Tariff (service+Network charge + energy charge) 3 Phase Connection
                                                Rating    2007       2008     % INCR                2009      %incr
 Fixed (service+ Network) charge                  60A     121.99     205.30   68.29%                260.73    27%
 Rands/month                                      80A     127.63     219.12   71.70%                278.28    27%
                        cons 0 < 500 kWh       60/80A      33.02      47.38   43.50%                47.38     0%Note1
 Energy charge c/kWh cons 500<1000 kWh         60/80A                                                         0% ditto
                                                           33.02      48.18   45.91%                48.18
                        cons 1000<2000 kWh     60/80A      33.02      48.98   48.09%                48.98     0%Note2
                        cons 2000<3000 kWh     60/80A      33.02      50.17   51.84%                50.17     0% ditto
                        cons > 3000 kWh        60/80A      33.02      50.77   53.75%                50.77     0% ditto
Note 1 An increase of 27% was applied for , but approval was declined by the NERSA
Note 2 An increase of 30% was applied for , but approval was declined by the NERSA
4. New Tariffs for Electricity for City of Johannesburg as approved
by NERSA (contd)
Note 3. The problem of charges in multi unit buildings has been reduced in that the energy charges for
single phase and three phase supplies are now the same , and the energy charge for the conventional
tariff is lower than that for the lifeline tariff. The consumption of the complex should be divided by the
number of units to establish the average consumption, which then should establish the applicable tariff
line. If in practice some of the units use less than 300 kWh in the month on average through the year then
the Expanded Social Package is applicable, and Free Basic Electricity up to 100 kWh is possible. This has
to be applied for at the applicable service facility.

Example : Ignoring the service charge, the DSM levy , and the VAT since these affect all results equally, If
the consumption of the complex of 10 units as a whole was 10 000 kWh , this would r be charged as a
single consume at the highest rate and cost R5077. Whereas, the average consumption is 1000 kWh.
Then the unit charge on the average consumption is R481. 8 which x 10 gets back to R4818. The account
therefore has to be adjusted initially to this figure.


 Domestic Prepaid Tariff : Energy Charge only, in c/kWh           2007       2008        %incr        2009        %incr
 Energy charge c/kWh consumption is 0 < 500 kWh                     45.54       65.35     43.50%       lifeline
 Energy charge c/kWh consumption is 500<1000 kWh                    45.54       66.45     45.91%        78.52     18.16%
 Energy charge c/kWh consumption is 1000<2000 kWh                   45.54       67.55     48.09%        80.12     18.61%
 Energy charge c/kWh consumption is 2000<3000 kWh                   45.54       69.00     51.84%        82.06     18.93%
 Energy charge c/kWh consumption is > 3000 kWh                      45.54       70.02     53.75%        83.05     18.61%
Note Increases applied for of 24 - 25% were not approved



Sectional Title Properties
The account for municipal services where this is metered at one supply point such as water and electricity, will still be
billed to the Body Corporate.

Refuse removal will be billed directly to the property owner where the relevant information is available to the
Council e.g. the number of units, the postal addresses of the registered owners
Approved New Rates and Rebates for City of Johannesburg 2009
Effective 1 July 2009
See the www.joburg.org.za website for more details This information has been set out in an item served before
Council in May 2009 Examples of calculations are provided at the foot of the information
5. Assessment Rates : Residential And Residential Sectional Title Properties
5.1                                                             2008/2009               2009/2010          % Incr
Rate in the rand, cents in the Rand, per annum                  0.004                   0.0044            10%
Residential Property with Consent Use                           0.008                   0.0088            10%
All developed residential property will be rated at the same rate irrespective of the number of dwelling units on that
property, based on the latest valuation of land and improvements. Different rates apply for other classes of
properties.
5.2 Rates Applicable to categories of Property other than Residential and Residential Sectional
Title Properties
Category                     Tariff (Rate in the Rand)      Category                        Tariff (Rate in the Rand)
                             2008/09 2009/10 %incr                                          2008/09 2009/10 %incr
Agricultural (bona fide      0.004      0.0044     10%      Municipal Ratable               0.0048     0.00528 10%
farming
Business                     0.012      0.0154     28%      Public Service                  nil        nil         10%
                                                            Infrastructure
Business Sectional Title     0.012      0.0154     28%      Religious                       nil        nil         nil
Education                    0.004      0.0044     10%      State                           0.006      0.0066      10%
Farming                      0.004      0.0044     10%      Vacant                          0.016      0.0176      10%
Mining                       0.012      0.0154     28%      Agricultural holdings used      0.004      0.0044      10%
                                                            for agricultural purposes
Multiple Purpose Note 1         0.012
Municipal Not ratable           nil
Note 1 tariff for the highest authorized use unless sectionalized for partial residential in which case the
residential tariff shall be applied to units used for residential purposes
5.3 Value exclusion Threshold R150 000,00 (remains the same as 2008/2009)
The first R150 000,00 of value of all residential property and multiple purpose properties (provided one or more
components of the multiple purpose property are used for residential purposes) is to be excluded from rating.
5.4 Rebates                                                                         2008/9        2009/10
5.4. Pensioner Owned Property Rebates:
5.4.1 Criteria to be met for Pensioner to qualify:
    5.4.1.1 residential property is owned by pensioner
    5.4.1.2 residential property is occupied by pensioner
    5.4.1.3 the value of the property as recorded in the prevailing valuation roll
is less than figure in the column                                                  R1 500 000 R1 500 000
    5.4.1.4 the pensioner has attained the age of 60 years or older
    5.4.1.5 or in the case of dual ownership at least one of the owners is 60
years or older
5.4.2 State Pensioners : residential property owners who occupy the                100%           100%
property and are dependant on a State social grant security grant as their
sole source of income. (provided all 5 points above are met)
5.4.3 Pensioners where the total income of the household does not exceed           R5000          R5 300
the maximum of x per month over the previous income tax yr (provided all 5 100%                   100%
points above are met)
5.4.4 Pensioners where the total income of the household exceeds the
average of the figure in 5.4.3 per month over the previous income tax year         R9 000         R9 600
but does not exceed the maximum of y per month over the previous income            50%            50%
tax year (provided all 5 points above are met) the rebate is
5.4.5 Pensioners are required to make application bi-annually for the
pensioners rebate providing proof of the criteria and once approved by
Council will qualify for the pensioners rebate.
5.5. Should a sectional title property owner fall into both Pensioner rebate
and sectional title rebates the sectional title rebate will take preference,
thereafter a further rebate based on pensioners rebate calculated on
 the net amount payable after the sectional title rebate, as may be
applicable.
5.6 100% rebate for Indigents (Residential property owned and occupied by       100%             100%
natural persons whose annual income falls below the limit determined by
Council and who are registered as indigents under the Expanded Social
Package (ESP)
5.7 20% rebate for Residential Sectional Title property owners (to              20%              20%
incentivize higher density residential development to ensure better use of
infrastructure)
5.8 20% rebate for Residential property developed at a density of 70            20%              20%
dwelling units per h or higher
5.9 40% rebate for property in the Inner City which was partially rezoned       40%              40%
for residential purposes allowing for a minimum of 80% residential with the
remaining 20% being available for commercial purposes. Must have one
owner , and one market value on the valuation roll.
5.10 Heritage site                                                              20 %             20 %
5.11 Organisations with a purpose of animal protection                          100%             100%
5.12 Primary and secondary schools                                              50%              50%
5.13 Technical colleges, Universities and tertiary education facilities         20%              20%
5.14 Public benefit organizations registered with SARS in terms of Section      100 %            100 %
30 of the Income Tax Act and who provide a service referred to in Sections
1, 2, and 4 of the Ninth Schedule to the said Act . This is set out in the
Special Cases Policy and the organization should submit proof annually
5.15 Farming and Agricultural subject to conditions                             55%              55%
5.16 Property Owned by Organisations in terms of the Housing                    ?                50%
Development Schemes for Retired Persons Act
5.17 Vacant Land where Council is unable to provide infrastructural services                     50%

5.18 Phase in: All     75% deducted in 2008/2009 financial year being yr 1 (provided the          50%
properties levied      body corporate was not rated prior to the implementation of the New
for the first time -   Rates Policy) ; 50% in year 2; 25 % in year three ;Full amount in yr 4.

Example 1      Sectional Title property per valuation roll     R1 750 000
               Less: Threshold R150 000 equals                 R1 600 000
               Multiplied by R0,0044 (Rate in the Rand)equals R7040
Less (if applicable) : Sectional title rebate 20%              R1 408
Less: Pensioner rebate 2 b) c) & d) not applicable since the property value exceeds R1 500 000
Rates payable per annum                                        R5 632 == (R469.33 per month)

Example 2 Sectional Title property per valuation roll        R1 450 000
Less: Threshold R150 000 equals                              R1 300 000
Multiplied by R0,0044 equals                                 R5 720
Less (if applicable) : Sectional title rebate 20%            R1 144
Rates payable per annum                                      R4 576
Less where applicable : for three separate cases
Pensioner rebate 5.4.2 100% therefore payable                Rnil.
Pensioner rebate 5.4.3 100% therefore payable                Rnil
Pensioner rebate 5.4.4 50% therefore payable                 R2 288 per annum (R190.67 per month)

5.19. Sectional Title Properties – Request For Information
Forms can be downloaded from the City’s website at www.joburg.org.za or by sending a fax to
        (011) 381 9642 with the heading “Sectional Title Form required” or by email to <ratespolicy@joburg.org.za>
        with “Sectional Title Form required” in the subject heading. The completed forms can be transmitted to the
        aforementioned fax or email.
The Council is not able to accurately determine the exclusive use rights and common areas within a complex and
the Body Corporates have been requested to provide this information to Council to assist in more accurate data to be
used in the valuation and rating process. The onus rests on individual Sectional Title property owners to notify
Council of their postal addresses in order that Council may:
              - notify them of the valuation of their property in the new valuation roll, and
              - post individual owners their rates account from 1 July 2009

				
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Description: New Tariffs and Rates for City of Johannesburg