Msunduzi Draft 2013-14

AnnuAl Budget And MediuM terM revenue

And expenditure FrAMework

2013/14 to 2015/16

ContaCt DetailsBuDget offiCe the City hallC/o Chief alBert luthuli roaD & ChurCh street PietermaritBurg3200

telePhone: 033-392 2002email: [email protected]

City of Choice, Second to NoneCity of Choice, Second to None

2013/14 to 2015/16

1

ANNUAL DRAFT BUDGET OF MSUNDUZI LOCAL MUNICPALITYKZN225

2013/14 TO 2015/16MEDIUM TERM REVENUE AND EXPENDITURE FORECASTS

Copies of this document can be viewed: Inthefoyersofallmunicipalbuildings Allpubliclibrarieswithinthemunicipality Atwww.msunduzi.gov.za

MSUNDUZI ANNUAL DRAFT BUDGET

2

TABLE OF CONTENTS PAGE

Part1AnnualBudget 5

1.1. Council Resolutions 51.2. Executive Summary 51.3 Operating Revenue Framework 91.4. Operating Expenditure Framework 40

Part2SupportingDocumentation 60

2.1. Overview of the annual budget process 602.2. Overview of alignment of annual budget with IDP 622.3. Overview of budget assumptions 682.4. Expenditure on grants and reconciliations of unspent funds 822.5. Councillor and employee benefits 862.6. Capital expenditure details 992.7. Other supporting documents 1092.8. Municipal managers quality certificate 118

ListofTables

Table 1 Consolidated Overview of the 2013/14 MTREF 6Table 2 Summary of revenue classified by main revenue source 10Table 3 Percentage growth in revenue by main revenue source 11Table 4 Transfers and Grant Receipts 12Table 5 Comparison of proposed rates to levied for the 2013/14 financial year 14Table 6 Comparison between current water charges and increases (Domestic) 18Table 7 Comparison between current electricity charges and increases (Domestic) 20Table 8 Comparison between current sanitation charges and increases 31Table 9 Summary of operating expenditure by standard classification item 40Table 10 2013/14 Medium-term capital budget per funding 43Table 11 MBRR Table A1 - Budget Summary 45Table 12 MBRR Table A2 - Budgeted Financial Performance (revenue and expenditure by standard classification) 48Table 13 MBRR Table A3 - Budgeted Financial Performance (revenue and expenditure by municipal vote) 49Table 14 MBRR Table A4 - Budgeted Financial Performance (revenue and expenditure) 50Table 15 MBRR Table A5 - Budgeted Capital Expenditure by vote, standard classification and funding source 51Table 16 MBRR Table A6 - Budgeted Financial Position 53Table 17 MBRR Table A7 - Budgeted Cash Flow Statement 55Table 18 MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation 57Table 19 MBRR Table A9 - Asset Management 58Table 20 MBRR Table SA6 - Reconciliation between the IDP strategic objectives and budgeted capital expenditure 64Table 21 MBRR Table SA8 - Performance indicators and benchmarks 66Table 22 MBRR SA15 Detail Investment Information 70Table 23 MBRR Table SA 17 - Detail of borrowings 72Table 24 MBRR Table SA 18 - Capital transfers and grant 74Table 25 MBRR Table A7 - Budget cash flow statement 76Table 26 MBRR Table A8 - Cash backed reserves/accumulated surplus reconciliation 77

2013/14 to 2015/16

3

Table 27 MBRR SA10 Funding compliance measurement 78Table 28 MBRR SA19 - Expenditure on transfers and grant programmes 82Table 29 MBRR SA 20 - Reconciliation between of transfers, grant receipts and unspent funds 84Table 30 MBRR SA22 - Summary of councillor and staff benefits 86Table 31 MBRR SA23 - Salaries, allowances and benefits (political office bearers/councillors/ senior managers) 88Table 32 MBRR SA24 Summary of personnel numbers 89Table 33 MBRR SA25 - Budgeted monthly revenue and expenditure 91Table 34 MBRR SA26 - Budgeted monthly revenue and expenditure (municipal vote) 92Table 35 MBRR SA27 - Budgeted monthly revenue and expenditure (standard classification) 93Table 36 MBRR SA28 - Budgeted monthly capital expenditure (municipal vote) 95Table 37 MBRR SA29 - Budgeted monthly capital expenditure (standard classification) 96Table 38 MBRR SA30 - Budgeted monthly cash flow 97Table 39 MBRR SA 34a - Capital expenditure on new assets by asset class 99Table 40 MBRR SA34b - Capital expenditure on the renewal of existing assets by asset class 101Table 41 MBRR SA34c - Repairs and maintenance expenditure by asset class 103Table 42 MBRR SA35 - Future financial implications of the capital budget 105Table 43 MBRR SA36 - Detailed capital budget per municipal vote 106Table 44 MBRR Table SA1 - Supporting detail to budgeted financial performance 109Table 45 MBRR Table SA2 Matrix financial performance budget (revenue source/expenditure type and department) 113Table 46 MBRR Table SA3 Supporting detail to Statement of Financial Position 114

ListofFigures

Figure 1 Main operational expenditure categories for the 2013/14 financial year 42Figure 2 Breakdown of operating revenue over the 2013/14 MTREF 69


4

AMR Automated Meter ReadingASGISA Accelerated and Shared Growth InitiativeBPC Budget Planning CommitteeCBD Central Business DistrictCFO Chief Financial OfficerCM City ManagerCPI Consumer Price IndexCRRF Capital Replacement Reserve FundDBSA Development Bank of South AfricaDoRA Division of Revenue ActDWA Department of Water AffairsEE Employment EquityEEDSM Energy Efficiency Demand Side ManagementEM Executive MayorFBS Free basic servicesGAMAP Generally Accepted Municipal Accounting

PracticeGDP Gross domestic productGDS Gauteng Growth and Development StrategyGFS Government Financial Statistics GRAP General Recognised Accounting PracticeHR Human ResourcesHSRC Human Science Research CouncilIDP Integrated Development StrategyIT Information Technologykl kilolitrekm kilometreKPA Key Performance AreaKPI Key Performance IndicatorkWh kilowattl litreLED Local Economic DevelopmentMBRR Municipal Budget & Reporting RegulationsMEC Member of the Executive CommitteeMFMA Municipal Financial Management Act ProgrammeMIG Municipal Infrastructure GrantMMC Member of Mayoral CommitteeMPRA Municipal Properties Rates ActMSA Municipal Systems ActMTEF Medium-term Expenditure FrameworkMTREF Medium-term Revenue and Expenditure FrameworkNERSA National Electricity Regulator South AfricaNGO Non-Governmental organisationsNKPIs National Key Performance IndicatorsOHS Occupational Health and SafetyOP Operational PlanPBO Public Benefit Organisations

PHC Provincial Health CarePMS Performance Management SystemPPE Property Plant and EquipmentPPP Public Private PartnershipPTIS Public Transport Infrastructure SystemRG Restructuring GrantRSC Regional Services CouncilSALGA South African Local Government AssociationSAPS South African Police ServiceSDBIP Service Delivery Budget Implementation PlanSMME Small Micro and Medium Enterprises

ABBREVIATIONS AND ACRONYMS

2013/14 to 2015/16

5

PArT1AnnuALBuDgeT

1.1. Councilresolutions

On 20 March 2013 the Council of the Msunduzi Local Municipality met in the Council Chambers of Msunduzi City Hall to consider the draft annual budget for the financial year 2013/14 and the two outer years.

At this meeting it was resolved that:

a) the Draft Budget 2013/14 to 2015/16 be approved.

b) the Municipal Manager be mandated to submit the Draft Budget to the National and Provincial Treasuries as well as the Provincial Department of Cooperative Governance and Traditional Affairs (COGTA).

1.2. executiveSummary

The application of sound financial management principles for the compilation of the Citys financial plan is essen-tial and critical to ensure that the City remains financially viable and that municipal services are provided sustain-ably, economically and equitably to all communities.

The Citys business and service delivery priorities were reviewed as part of this years planning and budget process. Where appropriate, funds were transferred from low- to high-priority programmes so as to maintain sound financial stewardship. A critical review was also undertaken of expenditures on noncore and nice to have items.

The City has embarked on implementing a range of revenue collection strategies to optimize the collection of debt owed by consumers. Furthermore, the City has undertaken various customer care initiatives to ensure the municipality truly involves all citizens in the process of ensuring a people lead government.

National Treasurys MFMA Circulars No. 51, 54, 55, 58, 59 and 67 were used to guide the compilation of the 2013/14 MTREF.

The main challenges experienced during the compilation of the 2013/14 MTREF can be summarized as follows:

Theongoingdifficultiesinthenationalandlocaleconomy; Agingandpoorlymaintainedwater,roadsandelectricityinfrastructure; Theneedtoreprioritizeprojectsandexpenditurewithintheexistingresourceenvelopegiventhecashflow

realitiesanddecliningcashpositionofthemunicipality; Wageincreasesformunicipalstaffthatcontinuetoexceedconsumerinflation,aswellastheneedtofill

criticalvacancies; Affordabilityofcapitalprojectsoriginalallocationshadtobereducedandtheoperationalexpenditure

associated with prior years capital investments needed to be factored into the budget as part of the 2013/14 MTREF process. The following budget principles and guidelines directly informed the compilation of the 2013/14 MTREF:

The2012/13AdjustmentsBudgetprioritiesandtargets,aswellasthebaselineallocationscontainedintheAdjustmentsBudgetwereadoptedastheupperlimitsforthenewbaselinesforthe2013/14annualbudget;

Intermediateservicelevelstandardswereusedtoinformthemeasurableobjectives,targetsandbacklogeradicationgoals;

Tariffandpropertyrateincreasesshouldbeaffordableandshouldgenerallynotexceedinflationasmea-sured by the CPI, except where there are price increases in the inputs of services that are beyond the control of the municipality, for instance the cost of bulk water and electricity. In addition, tariffs need to remain or move towards being cost reflective, and should take into account the need to address infrastructure back-logs;


6

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TREF

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225

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1 C

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Sum

ma

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2009

/10

2010

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2011

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Cur

rent

Yea

r 201

2/13

2013

/14

Med

ium

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m R

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Ex

pen

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l Rev

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7

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)

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l Per

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Des

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Ref

2009

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Yea

r 201

2/13

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/14

Med

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m R

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Ref

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The

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era

ting

reve

nue

has

gro

wn

by

4.89

per

cen

t or R

153

.5 m

illio

n fo

r the

201

3/14

fina

ncia

l yea

r whe

n co

mp

are

d to

the

2012

/13

Ad

just

men

ts B

ud-

get

. Fo

r the

two

out

er y

ears

, op

era

tiona

l rev

enue

will

incr

ease

by

12.9

7 p

erce

nt (

R 40

7.1)

and

7.8

per

cen

t (R

269.

0) re

spec

tivel

y, e

qua

ting

to a

tota

l re

venu

e g

row

th o

f R67

6.1

mill

ion

ove

r the

MTR

EF w

hen

com

pa

red

to th

e 20

12/1

3 fin

anc

ial y

ear.

Tota

l op

era

ting

exp

end

iture

for t

he 2

013/

14 fi

nanc

ial y

ear h

as

bee

n a

pp

rop

riate

d a

t R3.

2 b

illio

n a

nd tr

ans

late

s in

to a

bud

get

ed s

urp

lus

of R

66.6

mil-

lion.

Whe

n co

mp

are

d to

the

2012

/13

Ad

just

men

ts B

udg

et, o

per

atio

nal e

xpen

ditu

re h

as

gro

wn

by

3.1

per

cen

t in

the

2013

/14

bud

get

and

by

11.2

and

20

.3 p

er c

ent f

or e

ach

of t

he re

spec

tive

out

er y

ears

of t

he M

TREF

.

The

cap

ital b

udg

et o

f R 4

43.2

mill

ion

(R 3

83.2

mill

ion

gra

nt fu

ndin

g p

lus

R60

mill

ion

inte

rna

l fun

din

g)

for

2013

/14

has

gro

wn

by

43.1

per

cen

t whe

n co

mp

are

d to

the

2012

/13

Ad

just

men

t Bud

get

.

2013/14 to 2015/16

9

1.3OperatingrevenueFramework

In order for Msunduzi Local Municipality to continue improving the quality of services provided to its citizens it needs to generate the required revenue. In these tough economic times strong revenue management is fun-damental to the financial sustainability of every municipality. The reality is that we are faced with development backlogs and poverty. The expenditure required to address these challenges will inevitably always exceed avail-ablefunding;hencedifficultchoiceshavetobemadeinrelationtotariffincreasesandbalancingexpendituresagainst realistically anticipated revenues.

The municipalitys revenue strategy is built around the following key components:

NationalTreasurysguidelinesandmacroeconomicpolicy; GrowthintheCityandcontinuedeconomicdevelopment; Efficientrevenuemanagement,whichaimstoensurea85%percentannualcollectionrateforproperty

ratesandotherkeyservicecharges; ElectricitytariffincreasesasapprovedbytheNationalElectricityRegulatorofSouthAfrica(NERSA); Achievementoffullcostrecoveryofspecificuserchargesespeciallyinrelationtotradingservices; Determiningthetariffescalationratebyestablishing/calculatingtherevenuerequirementofeachservice; ThemunicipalitysPropertyRatesPolicyapprovedintermsoftheMunicipalPropertyRatesAct,2004(Act6of

2004)(MPRA); Increaseabilitytoextendnewservicesandrecovercosts; ThemunicipalitysIndigentPolicyandrenderingoffreebasicservices;and TariffpoliciesoftheCity.


10

The

follo

win

g ta

ble

is a

sum

ma

ry o

f the

201

3/14

MTR

EF (c

lass

ified

by

ma

in re

venu

e so

urce

):

Tab

le 2

Sum

ma

ry o

f rev

enue

cla

ssifi

ed b

y m

ain

reve

nue

sour

ce

KZN

225

Msu

nduz

i - T

ab

le A

4 C

onso

lida

ted

Bud

get

ed F

ina

ncia

l Per

form

anc

e (r

even

ue a

nd e

xpen

ditu

re)

Des

crip

tion

Ref

2009

/10

2010

/11

2011

/12

Cur

rent

Yea

r 201

2/13

2013

/14

Med

ium

Ter

m R

even

ue

& E

xpen

ditu

re F

ram

ewor

k

R th

ousa

nd1

Aud

ited

O

utco

me

Aud

ited

O

utco

me

Aud

ited

O

utco

me

Orig

ina

l Bu

dg

etA

dju

sted

Bu

dg

etFu

ll Ye

ar

Fore

cast

Pre-

aud

it ou

tcom

eBu

dg

et

Yea

r 20

13/1

4

Bud

get

Ye

ar +

1 20

14/1

5

Bud

get

Ye

ar +

2 20

15/1

6

Reve

nue

By S

ourc

e

Pro

per

ty ra

tes

2 4

20,0

30

448

,257

5

05,3

10

576

,402

5

76,4

02

576

,402

5

76,4

02

607

,308

6

64,11

6 7

01,4

42

Pro

per

ty ra

tes

- pen

alti

es &

co

llect

ion

cha

rges

20,

285

26,

358

31,

244

33,

812

47,

501

47,

501

47,

501

37,

363

38,

857

40,

800

Serv

ice

cha

rges

- el

ectri

city

reve

nue

2 8

16,17

3 1

,011

,459

1

,212

,660

1

,416

,917

1

,417

,115

1,4

17,11

5 1

,417

,115

1,5

58,8

27

1,7

14,7

09

1,8

86,1

80

Serv

ice

cha

rges

- w

ate

r rev

enue

2 2

13,6

33

270

,107

2

88,3

45

317

,354

3

39,5

45

339

,545

3

39,5

45

378

,445

3

98,9

02

420

,454

Serv

ice

cha

rges

- sa

nita

tion

reve

nue

2 7

6,20

7 1

02,5

92

107

,507

1

14,0

00

125

,263

1

25,2

63

125

,263

1

32,1

53

139

,281

1

46,7

95

Serv

ice

cha

rges

- re

fuse

reve

nue

2 5

3,28

7 6

5,55

9 7

0,09

1 7

8,75

2 7

3,54

7 7

3,54

7 7

3,54

7 7

7,59

2 8

1,84

1 8

6,31

1

Serv

ice

cha

rges

- o

ther

Rent

al o

f fa

cilit

ies

and

eq

uip

men

t 1

5,57

1 1

7,31

3 1

7,94

4 1

9,53

4 2

3,94

9 2

3,94

9 2

3,94

8 2

0,25

5 2

2,88

9 2

5,78

7

Inte

rest

ea

rned

- ex

tern

al i

nves

tmen

ts 6

,757

1

3,75

2 2

5,90

7 1

2,10

0 1

8,35

6 1

8,35

6 1

8,35

7 2

7,02

9 2

7,45

4 2

8,51

9

Fine

s 7

,084

5

,354

3

,813

3

,475

3

,566

3

,566

3

,566

3

,634

3

,830

4

,037

Lice

nces

and

per

mits

72

89

78

74

44

44

44

48

50

53

Ag

ency

ser

vice

s 1

,435

5

77

374

3

82

533

5

33

533

5

86

592

6

03

Tra

nsfe

rs re

cog

nise

d -

op

era

tiona

l 3

55,0

33

385

,630

5

00,6

69

365

,204

4

22,3

69

422

,369

4

22,3

69

383

,848

4

02,0

67

422

,980

Oth

er re

venu

e2

568

,910

5

16,9

09

503

,043

4

9,78

5 8

8,68

9 8

8,68

9 8

8,68

9 4

8,01

1 4

9,22

2 4

8,82

5

Ga

ins

on

dis

po

sal o

f PPE

15,

131

Tota

l Rev

enue

(ex

clud

ing

ca

pita

l tra

nsfe

rs a

nd

cont

ribut

ions

) 2

,575

,640

2,

902,

000

3,3

32,7

79

2,98

7,79

0 3

,138

,032

3,

138,

032

3,13

8,03

1 3,

291,

485

3,54

5,10

3 3

,814

,105

2013/14 to 2015/16

11

Tab

le 3

Per

cent

ag

e g

row

th in

reve

nue

by

ma

in re

venu

e so

urce

KZN

225

Msu

nduz

i - T

ab

le A

1 C

onso

lida

ted

Bud

get

Sum

ma

ry

Des

crip

tion

2013

/14

Med

ium

Ter

m R

even

ue &

Ex

pen

ditu

re F

ram

ewor

k%

Gro

wth

Ra

tes:

Est

ima

tes

act

ual (

Nom

ina

l)

Bud

get

Ye

ar

2013

/14

Bud

get

Ye

ar +

1 20

14/1

5

Bud

get

Ye

ar +

2 20

15/1

6

2009

/10

- 201

0/11

Ye

ar o

n Ye

ar

2010

/11

- 201

1/12

Ye

ar o

n Ye

ar

2011

/12

- 201

2/13

Ye

ar o

n Ye

ar

2012

/13

- 201

3/14

Ye

ar o

n Ye

ar

2013

/14

- 201

4/15

Ye

ar o

n Ye

ar

2014

/15

- 201

5/16

Ye

ar o

n Ye

ar

R th

ousa

nds

%

Fina

ncia

l Per

form

anc

e

Pro

per

ty ra

tes

6

44,6

71

7

02,9

73

7

42,2

42

8%13%

16%

3%9%

6%

Serv

ice

cha

rges

2,1

47,0

16

2,3

34,7

33

2,5

39,7

40

25%

16%

16%

10%

9%9%

Inve

stm

ent r

even

ue

2

7,02

9

2

7,45

4

2

8,51

9 104%

88%

-29%

47%

2%4%

Tra

nsfe

rs re

cog

nise

d -

op

era

tiona

l

383

,848

402

,067

422

,980

9%

30%

-16%

-9%

5%5%

Oth

er o

wn

reve

nue

88,

920

77,

876

80,

624

-6%

2%-80%

-25%

-12%

4%

Tota

l Rev

enue

(ex

clud

ing

ca

pita

l tra

nsfe

rs a

nd c

ontr

ibut

ions

) 3

,291

,484

3

,545

,103

3

,814

,105

13

%15

%-6

%5%

8%8%

In li

ne w

ith th

e fo

rma

ts p

resc

ribed

by

the

Mun

icip

al B

udg

et a

nd R

epo

rting

Reg

ula

tions

, ca

pita

l tra

nsfe

rs a

nd c

ont

ribut

ions

are

exc

lud

ed fr

om

the

op

era

ting

sta

tem

ent,

as

the

incl

usio

n o

f the

se re

venu

e so

urce

s w

oul

d d

isto

rt th

e ca

lcul

atio

n o

f the

op

era

ting

sur

plu

s/d

efic

it.

Reve

nue

gen

era

ted

fro

m ra

tes

and

ser

vice

cha

rges

form

s a

sig

nific

ant

per

cent

ag

e o

f the

reve

nue

ba

sket

for t

he C

ity.

Rate

s a

nd s

ervi

ce c

harg

es

reve

nues

co

mp

rise

mo

re th

an

two

third

s o

f the

tota

l rev

enue

mix

. In

the

2012

/13

fina

ncia

l yea

r, re

venu

e fro

m ra

tes

and

ser

vice

s ch

arg

es to

talle

d R

2.5

bill

ion

or 8

0.7

per

cen

t. T

his

incr

ease

s to

R2.

8 b

illio

n, R

3.0

bill

ion

and

R3.

3 b

illio

n fo

r 201

3/14

, 201

4/15

and

201

5/16

resp

ectiv

ely.

A n

ota

ble

tren

d is

the

incr

ease

in th

e to

tal p

erce

nta

ge

reve

nue

gen

era

ted

fro

m ra

tes

and

ser

vice

cha

rges

. Th

is g

row

th is

ma

inly

attr

ibut

ed to

the

incr

ease

in th

e sa

le o

f el

ectri

city

whi

ch c

ont

ribut

es to

the

tota

l rev

enue

mix

, whi

ch in

turn

is d

ue to

the

rap

id in

crea

ses

in th

e Es

kom

tarif

fs fo

r bul

k p

urch

ase

ele

ctric

ity.

The

ab

ove

tab

le e

xclu

des

reve

nue

fore

go

ne a

risin

g fr

om

dis

coun

ts a

nd re

ba

tes

ass

oci

ate

d w

ith th

e ta

riff p

olic

ies

of t

he M

unic

ipa

lity.

Pro

per

ty ra

tes

is th

e se

cond

larg

est r

even

ue s

our

ce to

talli

ng 1

8 p

er c

ent o

r R60

7 m

illio

n. O

ther

reve

nue

cons

ists

of v

ario

us it

ems

such

as

fines

, lic

ence

s a

nd p

erm

its, a

gen

cy s

ervi

ces,

sa

le o

f pro

duc

e, tr

ain

ing

reco

verie

s, la

ndin

g fe

es, p

ass

eng

er le

vy e

tc.

Op

era

ting

gra

nts

and

tra

nsfe

rs to

tals

R 3

83.8

mill

ion

in th

e 20

13/1

4 fin

anc

ial y

ear a

nd s

tea

dily

incr

ease

s to

R 4

02.1

mill

ion

by

2014

/15,

R 4

23 m

illio

n b

y 20

15/2

016.

Ca

pita

l gra

nts

and

tra

nsfe

rs a

mo

unts

to R

383

.2 m

illio

n, R

204

.3 m

illio

n a

nd R

202

.4 m

illio

n fo

r the

201

3/14

, 201

4/15

and

201

5/16

fina

ncia

l ye

ars

resp

ectiv

ely.

The

follo

win

g ta

ble

giv

es a

bre

akd

ow

n o

f the

va

rious

op

era

ting

gra

nts

and

sub

sid

ies

allo

cate

d to

the

mun

icip

alit

y o

ver t

he m

e-d

ium

term

:


12

Table 4 Transfers and Grant Receipts

KZN225 Msunduzi - Supporting Table SA18 Transfers and grant receipts

Description Ref 2009/10 2010/11 2011/12 Current Year 2012/13 2013/14 Medium Term Revenue & Expenditure

Framework

R thousand Audited Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year

2013/14

Budget Year +1 2014/15


RECEIPTS: 1, 2

Operating Transfers and Grants

National Government: 203,378 267,375 310,326 342,704 342,704 342,704 362,139 380,211 400,117

Local Government Equitable Share

199,824 267,211 304,835 338,903 338,903 338,903 354,313 373,677 393,300

Finance Management 750 165 1,979 1,500 1,500 1,500 1,550 1,600 1,650

Municipal Systems Improvement 400 978 800 800 800 890 934 967

EPWP Incentive 1,501 1,501 1,501 1,874

Electricity Demand Side Man-agement

2,404 2,534

Water Services Operating Sub-sidy

Other transfers/grants [insert description]

3,512 4,000 4,200

Provincial Government: 10,548 33,467 4,074 22,500 22,500 22,500 21,709 21,856 22,863

Health subsidy 9,161

Provincial Government: 20,979 1,207

Health subsidy

Expanded Public Works Grant 2,868

Operating Grant - Property Rates 1,387

Health 12,488 2,537 2,537 2,537

Human Settlements 9,000 9,000 9,000

Public Works

Arts and Culture 10,963 10,963 10,963 21,709 21,856 22,863

District Municipality:

Other grant providers:

Total Operating Transfers and Grants

5 213,926 300,842 314,400 365,204 365,204 365,204 383,848 402,067 422,980

Capital Transfers and Grants

National Government: 125,649 73,225 138,340 208,599 160,485 160,485 383,158 204,271 202,390

Municipal Infrastructure Grant (MIG)

91,339 48,348 138,340 153,399 150,170 150,170 151,312 159,271 170,390

Public Transport and Systems 7,737 11,663 45,000 100,846

Neighbourhood Development Partnership

700 70 70 10,000 10,000

Rural Households Infrastructure 4,500

Dept of Mineral/Electricty 3,757 5,000 5,000 8,000 5,000 10,000

Intergrated National Electrifica-tion Porgramme

5,000 5,000 5,000 123,000 30,000 12,000

Other capital transfers/grants [insert description]

26,573 9,457 245 245

Provincial Government: 11,429 11,836 21,415 56,234 56,234

2013/14 to 2015/16

13

KZN225 Msunduzi - Supporting Table SA18 Transfers and grant receipts

Description Ref 2009/10 2010/11 2011/12 Current Year 2012/13 2013/14 Medium Term Revenue & Expenditure

Framework

R thousand Audited Outcome

Audited Outcome

Audited Outcome

Original Budget

Adjusted Budget

Full Year Forecast

Budget Year

2013/14



Airport Development Project 11,429 11,836 19,315 16,760 16,760

Sport and Recreation 2,100 2,100 2,100

Corridor Development 37,289 37,289

KZNPA 85 85

District Municipality:

Other grant providers: 135 135

Carnegie 135 135

Total Capital Transfers and Grants

5 125,649 84,654 150,176 230,014 216,854 216,854 383,158 204,271 202,390

TOTAL RECEIPTS OF TRANSFERS & GRANTS

339,575 385,496 464,576 595,218 582,058 582,058 767,006 606,338 625,370

Tariff-setting is a pivotal and strategic part of the compilation of any budget. When rates, tariffs and other charges were revised, local economic conditions, input costs and the affordability of services were taken into account to ensure the financial sustainability of the City.

The percentage increase of Eskom bulk tariff is beyond the mentioned inflation target. Given that this tariff increase is determined by an external agency, the impact it has on the municipalitys electricity cost is largely outside the control of the City. Discounting the impact of this price increase in lower consumer tariffs will erode the Citys future financial position and viability.

It must also be appreciated that the consumer price index, as measured by CPI, is not a good measure of the cost increases of goods and services relevant to municipalities. The basket of goods and services utilized for the calculation of the CPI consist of items such as food, petrol and medical services, whereas the cost drivers of a mu-nicipality are informed by items such as the cost of remuneration, bulk purchases of electricity and water, petrol, diesel, chemicals, cement etc. The current challenge facing the City is managing the gap between cost drivers and tariffs levied, as any shortfall must be made up by either operational efficiency gains or service level reduc-tions. Within this framework the City has undertaken the tariff setting process relating to service charges as follows.

Property Rates

Property rates cover the cost of the provision of general services. Determining the effective property rate tariff is therefore an integral part of the municipalitys budgeting process.

National Treasurys MFMA Circular No. 51 deals, inter alia with the implementation of the Municipal Property Rates Act, with the regulations issued by the Department of Co-operative Governance. The regulations prescribing the rate ratio for the non-residential categories, public service infrastructure and agricultural properties relative to resi-dential properties to be 0,25:1 came into effect on 1 July 2009, whilst the rate ratio for Public Benefit Organizations came into effect on 1 July 2010. The implementation of these regulations was done in the previous budget process and the Property Rates Policy of the Municipality has been amended accordingly.


14

The categories of rateable properties for purposes of levying rates and the proposed rates for the 2013/14 financial year based on a 5.5 per cent increase from 1 July 2013 is contained below:

Table 5 Comparison of proposed rates to levied for the 2013/14 financial year

2012/13 2013/14Cents in the R Cents in the R % Incr

VOTE SUB ITEM060 448 8208

1. A GENERAL RATE, assessed in terms of the Local Government: Municipal Property Rates Act 6 of 2004 0.0202 0.021 5.50

(a) Vacant Land - no rebate granted (net) 0.0202 0.021311 5.50(b) Unauthorised use plus surcharge 0.0243 0.0256365 5.50

2. REBATES:

Residential Property(a) A rebate on the valuation of rateable property 0.0202 0.021311 5.50

Rate Randage after rebate (net) 0.0202 0.021311 5.50

Other Properties(b) A rebate on the valuation of rateable property 0.0006 0.000633 5.50


Agricultural Property(c) A rebate on the valuation of rateable property 0.0175 0.0184625 5.50


Public Service Infrastructure(d) A rebate on the valuation of rateable property 0.0175 0.0184625 5.50


Rural Communal Property(e) A rebate on the valuation of rateable property 0.0028 0.002954 5.50


Home Business and DSF properties(f) A rebate on the valuation of rateable property 0.0061 0.0064355 5.50


Sectional Title Garages - Separately Registered(g) A rebate on the valuation of rateable property 0.0091 0.0096005 5.50


2013/14 to 2015/16

15



Mining(h) A rebate on the valuation of rateable property 0.0006 0.000633 5.50


Public Benefit Organisations(i) A rebate on the valuation of rateable property 0.0001

Statutory Rebate 0.0027Additional Rebate 100%

3. OTHER REBATES:

Impermissable and Free Value based rebates(j) No rates shall be levied on the market value of the first R15,000

of residential property, home business and DSF properties.Arebateof100%willbegrantedonallresidentialpropertyand home business property from a value of R15,001 to a value of R100,000.

Aged Persons and Disability Grantees Rebate(k) Aged Persons Occupier Owner Applicants:

Female 60 years and overMale 63 years and overTotal monthly income of all occupants and owners from all sources Under age 75

R 3,000 R 3,165 5.50

Age 75 and over R 3,040 R 3,207.20 5.50%tageRebate R 1.00 R 1.05 5.50orTotal monthly income of all occupants and owners from all sources Under age 75

R 2,400 R 2,532 5.50

Age 75 and over R 2,440 R 2,574.20 5.50%tageRebate R 100.00 R 105.50 5.50

Child Headed Households(l) Maximum monthly income of all occupants and owners from

all sourcesR 2,400 R 2,532 5.50

%tageRebate R 1.00 R 1.05 5.50

Listed Buildings(m) Rates Rebate after primary rebate on Listed Buildings 40%Max 40%Max 40%Max


16


Developers Rebate(n) Rates Rebate on VL only subject to Council Conditions 100%

Year 1 66%Year 2 33%Year 3

4. GENERAL NOTE: (a) No rebates on Listed Buildings and Developers properties will

be granted to ratepayers where any arrears is outstanding on the property for rates & services. Rebatse will only be granted to aged personsand child headed households where arrangements are made for arrears and where all arrangments are being maintained.

(b) Existing Newly Incorporated Properties have been phased in over three years and no further rebates

will be granted in terms of the Municipal Property Rates Act.

(c) No rates will be levied on property owned and occupied by the Msunduzi Municipality.

5. MISCELLANEOUS CHARGES:

VOTE SUB ITEM 2012/13 2013/14022 415 8436 Excl. Vat Excl. Vat % Incr

(a) Revenue Clearance Certificate Application Fee R 230 R 242.65 5.50


(b) Deeds Registry Search per search R 15


(c) To search for and prepare any reconciliation, for each hour, or part of an hour, excluding the first half hour, reasonably required for such search and preparation. R 74 R 80.00 5.50PLUS Administration Fee R 21 R 25 5.50(Excluding applications made in terms of the Promotion ofAccess to Information Act, No. 2 of 2000)

2013/14 to 2015/16

17


6. INTEREST RATE AND COLLECTION CHARGE RATE:

(a) Interestrateperannum(Prime+1%) 18% 9.5% 9,5%

(b) Collection Charge Rate per annum 10% 10% 0.0%

Sale of Water and Impact of Tariff Increases

South Africa faces similar challenges with regard to water supply as it did with electricity, since demand growth outstrips supply. Consequently, National Treasury is encouraging all municipalities to carefully review the level and structure of their water tariffs to ensure:

Watertariffsarestructuredtoprotectbasiclevelsofserviceandensuretheprovisionoffreewatertothepoor-estofthepoor(indigent);and

Watertariffsaredesignedtoencourageefficientandsustainableconsumption.

In addition National Treasury has urged all municipalities to ensure that water tariff structures are cost reflective by 2014.

Better maintenance of infrastructure, new dam construction and cost-reflective tariffs will ensure that the supply challenges are managed in future to ensure sustainability. Umgeni Water has increased its bulk tariffs with 8.3 per cent from 1 July 2013.

Umgeni Water has undertaken a critical assessment of its capital infrastructure requirements. The assessment indicates that Umgeni Waters current infrastructure is unlikely to sustain its long-term ability to supply water and they had no other choice but to enter capital markets to raise R1.6 billion for infrastructure upgrades, hence the significant increase in the bulk cost of water.

A tariff increase of 10 per cent for all categories from 1 July 2013 for water is proposed. This is based on input cost assumptions of 8.3 per cent increase in the cost of bulk water (Umgeni Water).


18

Table 6 Comparison between current water charges and increases (Domestic)

Water TariffsVOTE SUB ITEM 2012/13 2013/14787 460 8595 Excl. Vat Excl. Vat % Incr

Water Supply Tariffs

1 Scale 2 (1) Domestic Basic Charge ( Except IndigentS) R 15.00 R 15.83 5.5%0kl to 6kl R 37.40 R 41.14 10.0%

Indigent 0kl to 7Kl Free 2 (2) Domestic

7kl to 30kl per kl R 12.58 R 13.84 10.0%

2 (3) Domestic 31kl to 60kl per kl R 18.57 R 20.42 10.0%

2 (4) _Domestic 61kl and over per kl R 21.67 R 23.84 10.0%

2 (5) _Domestic Flat rate (unmetered households) R 60.00 R 63.30 5.5%

2 Scale 3A Flats, SimplexesBasic Charge R 15.00 R 15.83 5.5%

Unit R 11.86 R 13.05 10.0%

3 Scale 3B Flats (Non-Rateable)Basic Charge R 15.00 R 15.83 5.5%Unit R 16.32 R 17.95 10.0%

4 Scale 4A (1) CommercialBasic Charge R 25.00 R 26.38 5.5%0 - 30 kl per kl R 13.46 R 14.81 10.0%

4A (2) Commercial31kl to 60kl per kl R 15.00 R 16.50 10.0%

4A (3) Commercial61kl to 100kl per kl R 17.60 R 19.36 10.0%

4A (4) Commercial101kl and over per kl R 13.46 R 14.81 10.0%

2013/14 to 2015/16

19

Water TariffsVOTE SUB ITEM 2012/13 2013/14787 460 8595 Excl. Vat Excl. Vat % Incr

5 Scale 4B Commercial (Non-Rateable)Basic Charge R 25.00 R 26.38 5.5%Unit R 16.60 R 18.26 10.0%

6 Scale 5 Builders, Construction SitesBasic Charge R 25.00 R 26.38 5.5%Unit R 16.60 R 18.26 10.0%

Flat Rate - Unmetered Fire Mains R 150.00 R 158.25 5.5%

7 Scale 6 Religious OrganisationsBasic Charge R 25.00 R 26.38 5.5%Unit R 13.17 R 14.48 10.0%

8 Scale 7 Registered Welfare & Charitable Institutions & certain Sport-ing Bodies which are exempted from payment of rates. Including such organizations & institutions exempted by the City Council.

Basic Charge R 25.00 R 26.38 5.5%Unit R 13.17 R 14.48 10.0%

10 Scale 8 Municipal DepartmentsUnit R 12.57 R 13.83 10.0%

Indigent Benefit - Domestic Water supply onlyProperties valued at R100,000 and below will automatically receive the first 7kl of water freeThe applicable tariff will be billed from the 7th kl upwards

Domestic households with a total household income within the limit set out in Rates page 3, Section3. (j), may apply for this benefit, subject to additional qualifying crite-ria

INTEREST RATE

1 Interest rate per annum 18% 9.5% 9.5%


20

1.2.2. SaleofelectricityandImpactofTariffIncreases

NERSA has announced the revised bulk electricity pricing structure. A 7.0 per cent increase in the Eskom bulk elec-tricity tariff to municipalities will be effective from 1 July 2013. Considering the Eskom increases, the consumer tariff had to be increased by 10 per cent to offset the additional bulk purchase cost from 1 July 2013.

Table 7 Comparison between current electricity charges and increases (Domestic)

City Electrical Engineers 2012/13 2013/14Excl. Vat Excl. Vat % Incr

DESCRIPTION VOTE SUB ITEMDomestic Basic Charge

704 412 8401

Domestic Amp Charge

704 412 8154

Domestic En-ergy Charge

704 412 8157

Scale A: Domestic 1 A.I Single-Phase up to 80A

Basic Charge per month(except Indigent) R 17.50 R 18.46 5.5%Net Ampere Charge per amp per phase p.m. R 6.953 R 7.648 10.0%Energy Charge per kWh (cents) 60.005 66.005 10.0%

Indigent Free 60KWh Free

DESCRIPTION VOTE SUB ITEMDomestic Basic Charge

704 412 8401

Domestic Amp Charge

704 412 8154

Domestic En-ergy Charge

704 412 8157

2 Scale A.3 Three Phase up to 100A Basic Charge per month R 29.16 R 30.76 5.5%Net Ampere Charge per amp per phase p.m. R 5.348 R 5.883 10.0%Energy Charge per kWh (cents) 60.005 66.005 10.0%

2013/14 to 2015/16

21


DESCRIPTION VOTE SUB ITEMSmall Power Users Basic Charge

704 412 8402

Small Power Users Ampere charge

704 412 8376

Small Power Users Energy Charge

704 412 8289

Scale B: Small Power users (Maximum Load 65 kVA)

3 Scale B.1 Single-Phase up to 80ABasic Charge per month R 46.66 R 49.22 5.5%Net Ampere Charge per amp per phase p.m. R 15.242 R 16.767 10.0%Energy Charge per kWh (cents) 61.502 67.652 10.0%

4 Scale B.3 Three-Phase up to 100ABasic Charge per month R 81.65 R 86.14 5.5%Net Ampere Charge per amp per phase p.m. R 12.702 R 13.973 10.0%Energy Charge per kWh (cents) 61.502 67.652 10.0%Minimum Charge per amp per phase p.m. R 12.702 R 13.973 10.0%

DESCRIPTION VOTE SUB ITEMLarge Power Users Bulk Basic

704 412 8403

Large Power Users Bulk kVa

704 412 8049

Large Power Users Bulk kWh

704 412 8052

Scale C: Large Power users (Load greater than 65 kVA)

5 Scale C.1 Supply taken at 400VBasic Charge per month R 349.92 R 369.17 5.5%Demand charge per kVA per month R 138.479 R 152.327 10.0%Energy charge per kWh (cents) 59.324 65.256 10.0%

* The minimum charge per month payable by the consumer under Scale C shall beanamountcalculatedasaforesaidonthebasisof70%ofthehighestmaxi-mum demand in kVA notified to the City Electrical Engineer by the consumer or 70%oftheprevioustwelvemonthshighestmaximuminkVA,whicheveristhehigher.


22



Scale D.1: Block Tariff This scale may be applied to any consumer at his election as an alternative to any other scale.

6 Energy Charge per kWh R 2.842 R 3.126 10.0%* The minimum monthly charge payable by the consumer under this scale shall beanamountcalculatedasaforesaidbasedon50%ofthehighestmonthlymeter reading in the last twelve months.


Indigent Benefit - Domestic supply onlyProperties valued at R100,000 and below with a 20amp circuit breaker will automatically receive the first 50kWh of electricity free

Domestic households with a total household income within the limit set out in Rates page 3, Section 3. (j), may apply for this benefit, subject to ad-ditional qualifying criteria

7 Energy Charge only (cents)

82.192 90.411 10.0%

Scale S: Prepayment Meter Tariff8 Energy Charge only (cents) 101.342 111.477 10.0%

DESCRIPTION VOTE SUB ITEM 2012/13 2013/14Time of Use: Basic 704 412 8404 Excl. Vat Excl. Vat %IncrTime of Use: De-mand kVa

704 412 8405

Time of Use: Ac-cess kVa

704 412 8406

Time of Use: kWh 704 412 8407

2013/14 to 2015/16

23


Scale T: Time Of Use Tariff

9 Scale T.1 Supply taken at 6.6 or 11 kVBasic Charge per month R 1,749.60 R 1,845.83 5.5%Demand charge per kVA per month R 64.716 R 71.188 10.0%Access charge per kVA per month. R 21.158 R 23.274 10.0%Based on highest of notified or previous 12 months highest demand.

Energy charge c/kWh (Periods as per Eskom Megaflex)High Demand: (June, July, August)

Peak 225.478 248.026 10.0%Standard 73.744 81.118 10.0%Off Peak 48.946 53.841 10.0%

Low Demand: (Other Months)Peak 77.708 85.479 10.0%Standard 55.520 61.072 10.0%Off Peak 44.983 49.481 10.0%

Reactive energy charge. Achargeforallreactiveenergywhichexceed30%ofthe real energy (kWh) per half hour period in the peak and standard periods only (c/kvarh)

5.642 6.206 10.0%


24

Time periods

Day Peak Standard Off-PeakWeekday 00:00-06:00

06:00-07:0007:00-10:00 10:00-18:0018:00-20:00 20:00-22:00 22:00-24:00

00:00-07:0007:00-12:00 12:00-18:0018:00-20:00 20:00-24:00

00:00-24:00

The table below indicates the treatment of public holidays for the Time of Use tariff

9 August 2012 National Womens Day Thursday Saturday24 September 2012 Heritage Day Monday Sunday16 December 2012 Day of Reconciliation Sunday Saturday17 December 2012 Public Holiday Monday Saturday25 December 2012 Christmas Day Tuesday Sunday26 December 2012 Day of Goodwill Wednesday Sunday1 January 2013 New Years Day Tuesday Sunday21 March 2013 Human Rights Day Thursday Saturday29 March 2013 Good Friday Friday Sunday1 April 2013 Family Day Monday Sunday27 April 2013 Freedom Day Saturday Saturday1 May 2013 Workers Day Wednesday Saturday16 June 2013 Youth Day Sunday Sunday17 June 2013 Public Holiday Monday Saturday



CHARGES FOR PUBLIC LIGHTING SERVICES TO NON-MUNICIPAL CUSTOMERSCHARGES FOR PUBLIC LIGHTING SERVICES TO MUNICIPAL APPLICATIONS

L1 Lights: Whole Night (incl Maintenance)Fixed-R /light/month R 25.89 R 27.31 5.5%Energy charge per 100 Watt per month if not measured R 19.331 R 21.265 10.0%Energy charge if measured (cents) per kWh 52.920 58.212 10.0%

2013/14 to 2015/16

25



L2 Lights: 24 hour (incl Maintenance)Fixed-R /light/month R 25.89 R 27.31 5.5%Energy charge per 100 Watt per month if not measured R 69.515 R 76.467 10.0%Energy charge if measured (cents) per kWh 57.211 62.932 10.0%

L3 Lights: Whole Night High Mast (incl. Maintenance)Fixed-R /light/month R 517.81 R 546.29 5.5%Energy charge per 100 Watt per month if not measured R 56.747 R 62.422 10.0%Energy charge if measured (cents) per kWh 52.920 58.212 10.0%

L4 Lights: 24 Hrs Traffic (Excl. Maintenance)Maintenance charged at actual cost Actual

CostActual

CostEnergy charge per 100 Watt per month if not measured R 69.515 R 76.467 10.0%Energy charge if measured (cents) per kWh 57.211 62.932 10.0%

INTEREST RATE

1 Interest rate per annum 18% 9.5% -47.2%


26

City Electrical Engineers2012/13 2013/14Excl. Vat Excl. Vat % Incr


New Connection1 Bylaw 27(12)(a)(a) Normal domestic business premises:

(single phase service connection with a maximum ca-pacity of 80A with a credit meter):

R 2,859 R 3,016 5.5%

Plus the cost of labour and material

(single phase service connection with a maximum ca-pacity of 80A with a prepayment meter):

R 3,501 R 3,693 5.5%

Plus the cost of labour and material

Plus the cost of providing and laying or mounting the underground cable or overhead wiring, as the case may be, within the consumers property boundary

Plus the cost of providing and laying or mounting the underground cable or overhead wiring,as the case may be, within the consumers property boundary

(b) Surcharge raised for the reinstatement of single phase domestic ser-vices that have been removed for tampering (including illegal recon-nection of disconnected service):

First offence R 11,664 R4,000 5.50Second offence R 17,496 R5,500 5.50Third or subsequent offence R 29,160 R7,000 5.50

(c) Surcharge raised for the reinstatement of single phase domestic ser-vices that have been removed for tampering (including illegal recon-nection of disconnected service):

First offence R 291,600 R20,000 5.50Second offence R 349,920 R35,000 5.50Third or subsequent offence R 583,200 R50,000 5.50

(d) Tampering with Electricity Meters or Metering Installations: Domestic & Business

Disconnection Fee R 675 R712 5.50Back dated consumption (calculated based on estimat-ed tampering period)

2013/14 to 2015/16

27



(e) Additional Charges: Illegal Connection and Reconnection

(i) Copper Theft Theft of Material Immediate

ArrestImmediate

ArrestBuying of stolen material Immediate

ArrestImmediate

Arrest

(ii) Illegal service connection - Connector Immediate Arrest

Immediate Arrest

(iii) Interference with other consumers equipment R 1,080 R 1,139 5.5%(iv) Failure to comply with any issued notice R 216 R 228 5.5%(v) Improper use of Electricity R 540 R 570 5.5%(vi) Property access to inspect equipment is denied R 324 R 342 5.5%(vii) Refusing to provide information R 216 R 228 5.5%(viii) Rendering false information R 216 R 228 5.5%(ix) Refusal of admittance R 216 R 228 5.5%(x) Restricted access to meter room R 216 R 228 5.5%(xi) Resale of electricity without a license or approval R 216 R 228 5.5%(xii) Selling or supplying electricity without authority R 540 R 570 5.5%(xiii) Standby Equipment connected to network without authority R 540 R 570 5.5%

(f) Tampering with installed anti-tampering seals R 2,160 R 2,279 5.5%

(g) Use of Electricity supply without a signed consumer agreement with the Municipality

R 540 R 570 5.5%

(h) Unkept substation equipment accommodation room R 540 R 570 5.5%

(i) Unkept meter rooms R 540 R 570 5.5%

(j) Unlocked meter rooms R 540 R 570 5.5%


28



2 Bylaw 27 (12)(b)In all other cases, the connection charges shall be calculated on the basis of maximum demand required in accordance with the follow-ing:

Maximum Demand

Basic Charge (Rands)

Basic Charge if no substation provided

(Rands)(kVA) 2012/13 2013/14 2012/13 2012/130 25 3,681 3,883 0 026 50 6,901 7,281 0 051 65 8,778 9,261 0 0

66 100 13,214 13,941 0 0101 130 16,983 17,917 0 0131 200 25,913 27,338 0 0201 315 65,307 68,899 21,028 22,185316 500 77,127 81,369 45,847 48,369501 800 95,575 100,832 83,786 88,394

801 1 000 113,126 119,348 113,126 119,348More than 1000 kva

101*kva +1620

Added to these charges will be the cost of providing and installing all cables and Council-owned equipment on the consumers premises.

3 Bylaw 27 (13)(a)Electrification projects (Low Cost Housing)Fee for the installation and connection, for domestic or small power users, of service cable or line, electricity dispenser and, where neces-sary, power distribution unit:

(a) For a single phase service up 20A R 197 R 208 5.5%(b) For a single phase service up to 60A

R 1,315 R 1,387 5.5%

2013/14 to 2015/16

29



1 Fee for attendance at or disconnection of consumers Installation per meter:

(a) where due to non-payment of charges or fees or due to failure to make any required deposit or furnish any required security by the consumer in terms of the bylaws or to the breach by the consumer of any of the bylaws or any condition of his agreement

business R 675 R 712 5.5%domestic R 300 R 317 5.5%

Note: This charge is also applicable to water disconnections/restric-tions ito 1(a)

(b) on the consumers request for a temporary disconnection (11kV sup-

ply) R 898 R 948 5.5%

(c) on the consumers request for a temporary disconnection (low volt-age supply)

R 558 R 589 5.5%

(d) where a consumers supply is disconnected at the supply mains R 1,091 R 1,151 5.5%

2 Fee for attendance in connection with a failure of supply R 139 R 147 5.5%

3 Fee for testing(a) fee for testing and inspection of an installation (other than bona fide

shock or fault of a serious nature)(i) Single dwelling unit

First visit inspection R 671 R 708 5.5%Subsequent visits/inspections R 334 R 353 5.5%

(ii) Any other installation Actual Cost Actual Cost

(b) fee for inspection of meter box upon certification by electrical con-tractor that a meter box is ready for inspection

(i) First inspection No Charge No Charge

(ii) Any subsequent inspection R 236 R 249 5.5%


30



4 Fee for testing accuracy of meter(a) Single-phase R 410 R 433 5.5%

(b) Three-phase R 611 R 645 5.5%

(c) Maximum demand Actual Cost Actual Cost

5 Fee for testing accuracy of tariff mcb(a) Single-phase service R 361 R 381 5.5%

(b) Three-phase service R 513 R 541 5.5%

6 Fee for change of tariff mcb(a) Single-phase service No Charge No Charge

(b) Three-phase R 21 R 22 5.5%

7 Fee for checking meter reading

R 113 R 119 5.5%


8 Accounting Charge R 133 R 141 5.5%

The inadequate electricity bulk capacity and the impact on service delivery and development remains a chal-lenge for the City. The upgrading of the Citys electricity network has therefore become a strategic priority, espe-cially the substations and transmission lines.

Owing to the high increases in Eskoms bulk tariffs, it is clearly not possible to fund these necessary upgrades through increases in the municipal electricity tariff as the resultant tariff increases would be unaffordable for the consumers. As part of the 2013/14 medium-term capital programme, funding has been allocated to electricity in-frastructure but these funding levels will require further investigation as part of the next budget cycle in an attempt to source more funding to ensure this risk is mitigated.

2013/14 to 2015/16

31

1.2.3. SanitationandImpactofTariffIncreases

A tariff increase of 5.5 per cent for sanitation from 1 July 2013 is proposed.

Table 8 Comparison between current sanitation charges and increases

Sewerage Tariffs

2012/13 2013/14Excl. Vat Excl. Vat % Incr


Based on the relevant Water ScaleSewerage Tariffs

1 Scale 2 Domestic/House R 109.13 R 115.14 5.5%

2 Home Business R 123.05 R 129.82 5.5%

3 Scale 3A Flats/Simplexes per kl R 5.79 R 6.11 5.5%

4 Scale 4A Business/Commercial per kl0 - 400 R 5.92 R 6.24 5.5%

401 - 1000 R 5.52 R 5.83 5.5%

Greater than 1000 R 4.56 R 4.82 5.5%

Subject to a maximum of R 23,809.98 R 25,119.53 5.5%

5 Vacant Land R 109.13 R 115.14 5.5%

6 Scale 6 Worship Places R 208.20 R 219.66 5.5%

7 Scale 8M Municipal Departments per kl R 5.92 R 6.24 5.5%

8 Indigent Tariff Free


32

Sewerage Tariffs

2012/13 2013/14Excl. Vat Excl. Vat % Incr


9 Scale 3c, 4c, 7c Registered Welfare & Charitable Institutions & certain Sporting Bodies which are exempted from payment of rates. Including such organizations & institutions exempted by the City Council.

per kl R 5.92 R 6.24 5.5%

Note: Home BusinessRefers to a property previously rated as residential where an owner or lessee runs a small business from the premises and which is still primarily used as a place of residence by that owner or lessee and where special consent has been obtained in terms of the Town Planning scheme to run this business on the premises.

INTEREST RATE

1 Interest rate per annum 18% 9.5% 9.5%

2013/14 to 2015/16

33

1.3.5refuse

A tariff increase of 5.5 per cent for refuse from 1 July 2013 is proposed. .

Refuse Removal TariffsVOTE SUB ITEM 2012/13 2013/14182 469 8439 Excl. Vat Excl. Vat % Incr

Standard charges for Domestic and Commercial Refuse RemovalBased on relevant Electricity Scale

Refuse Removal Tariffs

1 DomesticSingle phase up to 80A R 70.58 R 74.47 5.5%

Three phase up to 100A R 70.58 R 74.47 5.5%

Prepayment Meter R 70.58 R 74.46 5.5%Indigent Free Free

2 Home BusinessSingle phase up to 80A R 107.00 R 112.89 5.5%


Prepayment Meter R 107.00 R 112.89 5.5%

3 Small Power Users - Business/CommercialSingle phase up to 80A R 202.22 R 213.34 5.5%


4 Large Power Users Business/CommercialSupply taken at 400V R 202.22 R 213.34 5.5%

Supply taken at 6.6 or 11kV R 202.22 R 213.34 5.5%

5 Flats/Simplexes R 59.81 R 63.10 5.5%

6 Indigent Tariff R 35.29 R 37.23 5.5%


34

Refuse Removal TariffsVOTE SUB ITEM 2012/13 2013/14182 469 8439 Excl. Vat Excl. Vat % Incr

7 Central Business District R 268.92 R 283.71 5.5%Main cbd bordered by East(Massukwane), Winston/Victoria, Bulwer, Boschoff, Alan Paton, Prince Alfred, Railway, Pine. Greytown Rd form East To Trichy, Balhambra Way from Greytown Road to Newholme Way, Khan Roadfrom Greytown Road to Deccan Road, Mysore Road from Greytown Road to Bangalore Road, Alan Paton up till King Edward Ave.

Note: Home BusinessRefers to a property previously rated as residential where an owner or lessee runs a small business from the premises and which is still primarily used as a place of residence by that owner or lessee and where special consent has been obtained in terms of the Town Planning scheme to run this business on the premises.

INTEREST RATE

1 Interest rate per annum 18% 9.5%

2013/14 to 2015/16

35

Refuse Removal Tariffs2012/13 2013/14Excl. Vat Excl. Vat % Incr


1 Standard charges for Domestic and Commercial Refuse Removal.

Fees payable for the additional removal and clearance of refuse by ar-rangement from premises other than those applicable in item 1.

2. (a) Removal of additional domestic refuse: Excluding Central Business DistrictNormal days per collection (i) 3 x 85l bins or part thereof R 22 R 23 5.5%(ii) 240l wheeled bin or part thereof R 22 R 23 5.5%

(b) Other than normal removal days, per collection (i) 3 x 85l bins or part thereof R 135 R 143 5.5%

(c) Where Council refuse containers are used on high density residential devel-opments (simplexes, duplexes, cluster homes etc). The charge for a 1,75m3 container for approx. 10 units, one clearance per week, subject to agree-ment with the Waste Management Division.

R 221 R 234 5.5%

3. (a) Removal of additional domestic refuse: Central Business District

Normal days per collection (i) 3 x 85l bins or part thereof R 22 R 24 5.5%(ii) 240l wheeled bin or part thereof R 22 R 24 5.5%

(b) Other than normal removal days, per collection (i) 3 x 85l bins or part thereof R 138 R 146 5.5%

(c) Where Council refuse containers are used on high density residential devel-opments (simplexes, duplexes, cluster homes etc).The charge for a 1,75m3 container for approx. 10 units, one clearance per week, subject to agree-ment with the Waste Management Division.

R 225 R 238 5.5%

4. (a) Removal of trade refuse [Industrial/Commercial]:Normal days, per collection (i) 3 x 85l bins or part thereof R 58 R 62 5.5%(ii) 210l drum or part thereof R 58 R 62 5.5%(iii) 240l bin or part thereof R 58 R 62 5.5%(iv) Removal of additional refuse as per 3(a)(i)-(iii) R 58 R 62 5.5%


36



(b) Other than normal removal days, per collection (i) 3 x 85l bins or part thereof R 130 R 137 5.5%(ii) 210l drum or part thereof R 130 R 137 5.5%(iii) 240l bin or part thereof R 130 R 137 5.5%


5 Removal of industrial refuse [Industrial/Commercial]: (a) (i) per load or part thereof loaded by the Executive Manager [maxi-

mum 15 m3] removed as a once off clearance. R 2,224 R 2,346 5.5%

(ii) bulk refuse containers [15 m3] hire thereof, including a once off clearance.

R 1,674 R 1,766 5.5%

(iii) bulk refuse containers [maximum 15 m3] hire thereof, including one clearance per week.

R 1,621 R 1,710 5.5%

(iv) second clearance R 1,122 R 1,184 5.5%(v) each additional clearance R 1,007 R 1,063 5.5%


(b) small mobile refuse containers [approx. 0,24m3] available in Otto Bin ser-viced areas only:(i) hire thereof, including one clearance per week. R 62 R 66 5.5%(ii) second clearance R 47 R 49 5.5%(iii) each additional clearance R 43 R 45 5.5%

(c) small mobile refuse containers [approx. 1 m3] available in Otto Bin services areas only:(i) hire thereof, including one clearance per week. R 248 R 262 5.5%(ii) second clearance R 183 R 193 5.5%(iii) each additional clearance R 160 R 169 5.5%

(d) small mobile refuse containers [approx. 2 m3]:(i) hire thereof as a once off clearance R 404 R 426 5.5%(ii) hire per week, including one clearance R 367 R 387 5.5%(iii) second clearance R 191 R 201 5.5%(iv) each additional clearance R 167 R 176 5.5%

2013/14 to 2015/16

37



(e) 7 m3 refuse skips available in south-west area only:(i) hire thereof, including one clearance per week. R 811 R 856 5.5%(ii) second clearance R 568 R 600 5.5%(iii) each additional clearance R 484 R 510 5.5%

6 The tariff for the removal of refuse from properties owned by the State & Municipal Departments:240l(i) hire thereof, including one clearance per week. R 62 R 66 5.5%(ii) second clearance R 47 R 49 5.5%(iii) each additional clearance R 43 R 45 5.5%1 100l(i) hire thereof, including one clearance per week. R 238 R 251 5.5%(ii) second clearance R 175 R 185 5.5%(iii) each additional clearance R 149 R 157 5.5%

1,75m3

(i) hire thereof, including once off clearance R 387 R 408 5.5%(ii) hire per week, including one clearance per week R 351 R 371 5.5%(iii) second clearance R 182 R 192 5.5%(iv) each additional clearance R 160 R 169 5.5%

7m3

(i) hire thereof, including one clearance per week R 776 R 819 5.5%(ii) Second clearance R 549 R 579 5.5%(iii) Each additional clearance R 463 R 488 5.5%


15m3

(i) per load or part thereof loaded by the Executive Manager. Re-moved as a once off clearance

R 2,224 R 2,346 5.5%

(ii) hire thereof, including a once off clearance R 1,674 R 1,766 5.5%(iii) hire thereof, including once clearance per week R 1,621 R 1,710 5.5%(iv) second clearance R 1,137 R 1,200 5.5%(v) each additional clearance R 1,007 R 1,063 5.5%


38



20m3


R 2,965 R 3,128 5.5%


25m3


R 3,707 R 3,911 5.5%


DESCRIPTION VOTE SUB ITEMDomestic Outside Refuse Removal Area

182 469 8439

Commercial Outside Refuse Removal Area

183 469 8046

7 Removal and clearances from properties outside the refuse removal area: Applica-ble Tariffplus20%

Services provided by the Executive Manager8 Dead animals [per carcass] during working hours (a) (i) dog or cat R 381 R 402 5.5%

(ii) sheep, goat, calf or pig R 572 R 603 5.5%(iii) ox, cow, bull, horse, mule or donkey R 1,233 R 1,301 5.5%

(b) outside working hours (i) dog or cat R 426 R 449 5.5%(ii) sheep, goat, calf or pig R 1,080 R 1,140 5.5%(iii) ox, cow, bull, horse, mule or donkey R 2,161 R 2,280 5.5%

2013/14 to 2015/16

39


DESCRIPTION VOTE SUB ITEMDomestic Outside Refuse Removal Area

182 469 8439

Commercial Outside Refuse Removal Area

183 469 8046

The fees specified in this item shall be payable upon demand or otherwise may be arranged with the Council.9 Euthanased animals [per carcass]: (a) Removal of dog and cat carcasses from the premises owned or occupied

by registered veterinary practitioners (i) during normal working hours R 127 R 134 5.5%(ii) after normal working hours R 458 R 483 5.5%

(b) removal of carcasses other than dogs and cats shall be charged at the fees prescribed in items 4 and 5 as the case may be.


40

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Documents

Msunduzi Draft 2013-14