RUSTENBURG LOCAL MUNICIPALITY TARIFF POLICY 1. OBJECTIVE This policy is compiled in terms of Section 74 of the Local Government Municipal Systems Act 2000, and covers amongst other things, the levying of fees for the municipal services provided by Rustenburg Local Municipality by way of service delivery agreements. 2. 2.1 GENERAL PRINCIPLES Service tariffs imposed by Council shall be viewed as user charges and shall not be viewed as taxes, and therefore the ability of the relevant consumer or user of the services to which such tariff relate, shall not be considered as a relevant criterion. Tariffs levied will be uniformly and fairly applied throughout the Rustenburg Local Municipal jurisdiction and will as far as possible recover the expenses associated with the rendering of each service concerned. The tariff paid by a consumer or user must be directly related to the standard of service received and the quantity of the particular service used or consumed. A tariff will be imposed on the following major services rendered by Council: • • • • 2.4 Electricity Water Sewerage Refuse removal 2.2 2.3 The tariff levied shall as far as possible recover the expense associated with rendering of each service concerned. The tariff which a particular consumer or user pays shall therefore be directly related to the standard of service received and the quantity of the particular service used or consumed. The tariff levied in respect of the above services can generate an operating surplus for the financial year. Such surpluses can be applied for partial financing of general services or for future capital expansion of the service concerned. Council may differentiate between different categories of users and consumers with regard to the tariffs which it levies. Such differentiation shall, at all times be reasonable, and shall be fully disclosed in each annual budget. In the case of directly measurable services, namely water and electricity, the consumption of such services shall be properly metered by Council, and meters shall be read, wherever circumstances reasonably permit, on a monthly basis. 2.5 2.6 2.7 2.8 In addition council shall levy monthly availability charges (Basic charges) for the services concerned, and these charges shall be fixed for each type of property. Generally, consumers of water and electricity shall therefore pay two charges: one, relatively minor, which is unrelated to the volume of consumption and is levied because of the availability of the service concerned, and another directly related to the consumption of the service in question. CALCULATION OF TARIFFS FOR MAJOR SERVICES In order to determine the tariff which must be charged for the supply of the four major services, Council shall identify all the costs of operations of the undertakings concerned including the following: § § § § § § § § Cost of bulk purchases in case of water and electricity Distribution costs Distribution losses in case of water and electricity Depreciation expense Maintenance of infrastructure and or other fixed assets Administration and service costs The cost of approved indigency relief measures Other operating cost 3. 3.1 3.2 Council shall provide at least the first 50 kWh of electricity per month and the first 6kl of water per month free of charge to consumers who have registered an qualified as indigent in terms of the indigent household support policy. Council shall further consider relief in respect of the tariff for sewerage and refuse removal for such registered indigents, but shall not be less than a discount of 50% on the monthly amount billed for the service concerned. Because water is a scarce commodity, the tariff for residential consumption shall escalate according to the volume of water consumed. The tariff for residential consumption shall be based on monthly consumption up to12 kl, more than 12 kl but not more than 25 kl, more than 25 kl but not more than 40 kl, more than 40 kl but not more than 60 kl and more than 60 kl. Tariffs for non residential consumption shall be based on a single charge per kl consumed, irrespective of the volume of consumption concerned. ELECTRICITY The various categories of electricity consumers as set out below shall be charged at the applicable tariffs as approved by Council in each annual budget. Tariff adjustments shall be effective from the first billing of each new financial year or from 1 July each year. Categories of electricity consumers are as follow: • With single exception of registered indigents, all electricity consumers shall be billed for their electricity consumption at a tariff applicable to the category in which the particular consumer falls. 3.3 4. 4.1 4.2 4.3 • • 5 5.1 All residential electricity consumers who are registered indigent shall receive free the first 50kWh of electricity consumed per month. All commercial, industrial and residential property shall be billed a monthly basic charge per meter installed. WATER The categories of water consumers as set out below will be charged at the applicable tariffs, as approved by Council in each annual budget. Tariff adjustment shall be effective from the first billing of each new financial year or from 1 July each year. Categories of consumption and charges shall be • All domestic water consumers registered as indigents shall receive free at least the first 6 (six) kl of water consumed per month. Thereafter a stepped tariff per kl as determined by the Council from time to time shall be applicable on metered water consumption. All other residential consumers shall be charged for actual water consumption at a stepped tariff per kl as determined by Council from time to time. All other consumers, including business, industries and institutional consumer, shall pay the same single tariff per kl, irrespective of the volume of water consumed. A basic charge per water meter, as determined by the Council from time to time, shall be charged on all water consumers. 5.2 5.3 • • • 6. 6.1 REFUSE REMOVAL The categories of refuse removal users as set out below will be charged at the applicable tariff, as approved by Council in each annual budget. Tariff adjustment shall be effective from the first billing of each financial year or 1 July each year. A fixed monthly refuse removal charge must be applied to each of the following categories of users: • • • • • • • Residential 1, 2-4 (once weekly removal) Business (twice weekly removal) Bulk users Industrial Municipal Agricultural Special removals 6.2 6.3 6.4 Registered indigents will receive a discount on this charge in terms of the approved indigent policy. 7. 7.1 SEWERAGE The categories of sewerage users as set out below will be charged per month at applicable tariff as approved by Council in each annual budget. Tariff adjustment will be effective from the first billing of each financial year or 1 July each year. A fixed monthly charge based on the costs of the service shall be charged for residential users. Registered indigents shall receive a discount in terms of Council’s approved indigent household support policy. A fixed monthly charge based on the costs of the service per sewer point shall be charged to all business, industrial and institutional users. An effluent fee shall further be payable by factories and other industrial users where the wastewater emanating from such users requires special purification measures by the municipality. Such fees shall be based on the toxic content of the wastewater concerned and the costs of the purification. Categories of sewerage user • • • • • • • Residential 1, 2 - 4 Business Industrial Government Building sites Church Factory waste 7.2 7.3 7.4 7.5 7.6 8. 8.1 SUNDRY TARIFF Sundry tariff will be approved by Council in each annual budget and will, when deemed appropriate by Council, be subsidized, particularly when the tariffs will prove uneconomical when charged to cover the costs of the service concerned, or when the cost cannot accurately be determined, or when the tariff is designed purely to regulate rather than finance the use of the particular service or amenity. All sundry tariffs over which council has full control, and which are not directly related to the cost of a particular service, shall annually be adjusted at least in line with the prevailing consumer price index, unless there are compelling reasons why such adjustments should not be effected. The following shall be considered as subsidized services: • • • • Burials and cemeteries Rental for use of Municipal sport facilities Municipal swimming pools Municipal library (fines) 8.2 8.3 8.4 The following shall be considered as economical services and the tariffs levied shall cover 100% of the budgeted annual operating expenses of the service concerned: • • • • • • • Housing rentals Building plan fees Sale of refuse bins Electricity, water, sewerage : new connection fees Photostat copies and fees Clearance certificates Valuation roll 8.5 The following charges and tariff shall be considered as regulatory or punitive, and shall be determined as appropriate in each annual budget: • • • • • Fines for lost or overdue library books Advertising sign fees Electricity, water, disconnection and reconnection fees Penalty and other charges imposed in terms of the approved policy on credit control and debt collection. Penalty charged for the submission of dishonored, stale, postdated or otherwise unacceptable cheques. 8.6 8.7 Market-related rentals must be levied for lease of Municipal properties. A refundable deposit as determined from time to time during the review of the sundry tariffs shall be payable for the rental of municipal halls, premises and sport facilities, and in so determining shall be guided by the likelihood of the municipality’s sustaining damages as a result of the use of the facilities concerned. Deposits on Municipal halls, premises and sport fields shall be refunded on confirmation that there were no damage sustained by the Municipal, as a result of the use of such facilities. REVIEW The policy is subject to review from time to time when necessary. 9.