BULK INFRASTRUCTURE CONTRIBUTION LEVY (BICL’S)

Drakenstein Municipality

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 erfFlats/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)

For the subdivision of a residential property of ±1020m² into portion A ( 315m²), portion B (270m²), portion C (225m²) and Remainder (208m²).

1. Property value of the site is R 564 000.002. Property value of the portion is R 288 601.043. Tariff as per 2013/2014 financial year is R 8089.00 vat incl. per service.4. Cost per erf is R 8089.00 x 5(services) = R 40 445.00 vat incl.5. 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)

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.

1. Property value of each portion is R 240 000 +2. BICL tariff as per 2013/2014 financial year is R 8089.00 vat incl.3. GAP discount is 40%.4. Cost per unit is R 8089.00 x 5 x 0.4 = R 16 178.00 vat incl.5. 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 DEMAND CALCULATION OF CONTRIBUTION    

UserType

Unit

Number of Units

in Develop

ment

Land Area to

be develope

d with proposed Land Use

m2

GLA (m2)

(where applicabl

e)

Average

area per unit (m2)

Unit Deman

d (kl/day)

Total

DEMAND (kl/day)

Socio-Econo

mic Factor

Sustainabilit

y Factor

Municipal Area

Bulk Service Contribution

Payable ( R)

Single Residential stand area > 500m2(Med/ High Income) erf 1 1020- 1020 1.9 1.9 1 1

Paarl, Mbekwini, Wellington

R 23 743

  -     - - - - - -

Paarl, Mbekwini, Wellington -

  -     - - - - - -

Paarl, Mbekwini, Wellington -

TOTAL   1.9 R 23 743

Current vs New

Water Module New                       

CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION    

UserType

Unit

Number of Units

in Develop

ment

Land Area to

be develope

d with proposed Land Use

m2

GLA (m2)

(where applicabl

e)

Average

area per unit (m2)

Unit Deman

d (kl/day

)

Total

DEMAND (kl/day)

Socio-Econom

ic Factor

Sustainability Factor

Municipal Area

Bulk Service

Contribution

Payable ( R)

Single Residential stand area < 500m2(Med/ High Income) erf 1 317 0 317 1.2 1.2 1 1

Paarl, Mbekwini, Wellington

R 15 110

Single Residential stand area < 500m2(Med/ High Income) erf 1 270- 270 1.2 1.2 0.6 1

Paarl, Mbekwini, Wellington R 9 066

Single Residential (Low Income) erf 1 225- 225 0.6 0.6 0.6 1

Paarl, Mbekwini, Wellington R 4 533

  -     - - - - - -

Paarl, Mbekwini, Wellington -

TOTAL   3.0 R 28 710

Current vs New

Summary for subdivision for 3 additional units

Service Bulk Services Contribution New Land Use (R) Excl

VAT

Bulk Services Contribution Existing Land Use (R) Excl VAT

Nett BSC PAYABLE

(R) Excl VAT

Current BICL'S

No of units

Water R 28 710 R 23 743 R 4 967 R 24 267.00 3Sanitation R 31 544 R 17 524 R 14 019 R 24 267.00 3Storm water R 4 213 R 8 821 R 0 R 24 267.00 3Roads R 13 907 R 7 726 R 6 181 R 24 267.00 3Solid Waste R 6 035 R 3 353 R 2 682 R 0.00 Electricity R 104 992 R 74 994 R 29 998 R 24 267.00 3

TOTAL BULK SERVICE CONTRIBUTION PAYABLE R 57 847R 121

335.00 

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

Number of Units

in Develop

ment

Land Area to

be develope

d with proposed Land Use m2

GLA (m2) (where applicab

le)

Unit Dischar

ge (kl/day)

Total DISCHARGE (kl/day

)

Socio-Economic Factor

Sustainability

FactorMunicipal Area

Bulk Service

Contribution Payable (

R)

Agricultural small holdings ha 4.67 46700 0 0.8 3.7 1 1

Paarl, Mbekwini, Wellington

R 81 839

  -     - - - - -Paarl, Mbekwini, Wellington -

TOTAL   3.7 R 81 839

 

Current vs New

Sewer Module New

                     

CALCULATION OF DEMAND CALCULATION OF CONTRIBUTION    

UserType

Unit

Number of Units in

Development

Land Area to

be developed

with proposed Land Use

m2

GLA (m2)

(where applicabl

e)

Unit Discharg

e (kl/day)

Total DISCHARGE

(kl/day)

Socio-Economic

Factor

Sustainabilit

y Factor

Municipal AreaBulk Service Contribution

Payable ( R)

Single Residential (GAP Housing) erf 193 31000 0 0.5 96.5 0.6 1

Paarl, Mbekwini, Wellington R 1 268 324

Road Reserves ha 1.45 14500- 0.0 0.0 0.6 1

Paarl, Mbekwini, Wellington

R -

Sports, Recreation & Parks ha 0.12 1200- 1.0 0.1 0.6 1

Paarl, Mbekwini, Wellington R 1 577

TOTAL   96.6 R 1 269 901

Current vs New

Summary for new Group Housing

Service Bulk Services Contribution New Land Use (R) Excl

VAT

Bulk Services Contribution Existing Land Use (R) Excl VAT

Nett BSC PAYABLE

(R) Excl VAT

Current BICL'S

No of units

Water R 878 522 R 117 610 R 760 912 R 624 470.80 193Sanitation R 1 269 901 R 81 839 R 1 188 062 R 624 470.80 193Storm water R 355 708 R 201 940 R 153 768 R 624 470.80 193Roads R 596 461 R 7 726 R 588 735 R 624 470.80 193Solid Waste R 164 959 R 25 052 R 139 906 R 0.00  

Electricity R 17 405 621 R 416 634R 16 988

988 R 624 470.80 193

TOTAL BULK SERVICE CONTRIBUTION PAYABLER 19 820

372R 3 122 354.00