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Drakenstein Municipality. Bulk Infrastructure Contribution Levy (BICL’s). Background information. Pre Year 2000: Wellington Municipality had development contributions for Water & Sewer as part of their tariffs.

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drakenstein municipality

Drakenstein Municipality

Bulk Infrastructure Contribution Levy

(BICL’s)

background information
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:
  • Market value of property = R 120 000 (minimum fee/service).
  • Market value of property = R 240 000 + (maximum fee/service).
  • Pro rata levy is payable for units between R 120 000 – R 240 000.
  • Market value of the property is defined as:

Residential erven: Market value of the erf

Flats/Group housing: Market value of the unit

  • Year 2010 GAP Housing received 40% discount on there BICL’s payable.
  • Year 2011 Drakenstein Municipality appointed Vela VKE to re –evaluate our policy inline with other municipalities
current vs new
Current 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).
  • Property value of the site is R 564 000.00
  • Property value of the portion is R 288 601.04
  • Tariff as per 2013/2014 financial year is R 8089.00 vat incl. per service.
  • Cost per erf is R 8089.00 x 5(services) = R 40 445.00 vat incl.
  • Total BICL’s is calculated as R 8089 x 5(services) x 3 units= R 121 335.00 vat incl.
current vs new1
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.
  • Property value of each portion is R 240 000 +
  • BICL tariff as per 2013/2014 financial year is R 8089.00 vat incl.
  • GAP discount is 40%.
  • Cost per unit is R 8089.00 x 5 x 0.4 = R 16 178.00 vat incl.
  • BICL’s is calculated as (R 8089 x 5(services) x 40%) x 193 units = R 3 122 354 vat incl
current vs new2
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
current vs new3
Current vs New
  • Water Module New
current vs new4
Current vs New
  • Summary for subdivision for 3 additional units
current vs new5
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
current vs new6
Current vs New
  • Sewer Module New
current vs new7
Current vs New
  • Summary for new Group Housing