Professional Documents
Culture Documents
Budget For 2010/2011 Financial Year
Budget For 2010/2011 Financial Year
Budget For 2010/2011 Financial Year
2.After the draft budget was tabled the documents as prescribed in section 17
(3) of the MFMA was made available to the local community and National and
Provincial Treasury as required by Section 23(1) of the MFMA.
4.During the months of April/May 2010 a number of public meetings were held
throughout the municipal area to make the community familiar with the
budget and to obtain their views on it.
6.The comments at public meetings and the written submissions are entered
into a register for future reference.
7.Section 18(1) of the MFMA stipulates that an annual budget may only be
funded from:
9.EXPECTED INCOME:
EXPENDITURE:
39 868 000
The present tariffs are not reflective of the true cost of the service rendered by
the municipality, as it does not take the amount of the services used by the
consumer into account. Ideally the sewerage charges should be based on a
fixed charge component and a variable charge component that is calculated on
the measurable usage of the service, so that the principle of “the user pays”
applies. It is proposed that the sewerage tariff be partly based on consumers
actual water consumption. The new tariff is only intended to replace the
current basis where the cost of conveying and treating sewerage is recovered
from consumers. It is not intended to replace any other sewerage tariffs like
the trade effluent charge and miscellaneous charges. The new hydraulic tariffs
will replace the current basis for “sewerage fees” and “availability fees”.
Jeffreys Bay and Humansdorp contribute more than 92% of the Municipality’s
total sewerage revenue. Hence, the investigation focussed on analysis of the
water consumption data and tariff categories for the two towns.
The new tariff will be partly based on the actual volume of water consumed
that is appropriately reduced by the percentage of water used for other
purposes and not discharged into the sewer, i.e for irrigation purposes, topping
up of swimming pools etc. The proposed tariff structure model calculates the
revenue on two main components per consumer/erf.
The first portion is based on a fixed cost for each erf and the second portion of
the income is based on actual measured water consumption ( the so-called
hydraulic portion) for an erf.
The fixed charge per erf is based on the sewerage conveyance and treatment
cost for an average monthly water consumption per erf which is exceeded by
80% of consumers in the particular category.
(b) The second part of the hydraulic portion is calculated on the water
consumption in excess of the specified minimum volume up to a specified
maximum consumption per erf domestic/residential categories. No maximum
consumption applies to the non residential categories. The fixed charge is
applicable for every property which has access to the Municipal sewerage
system irrespective of the property still being vacant or if the property uses
the existing system, including the suction tanker service.
The fixed cost component is there for payable irrespective of the service being
used by the consumer or not, therefore this charge will effectively replace the
current “Availability Fee”
REFUSE: R82.46+vat=R94.00
RATES LEVY:
R 407 644
Expenditure by vote
Surplus 289
R 407 644
Sewer Treatment Plant (Bulk cost 7 150 000) 2 000 000 Own 2010/2011
5 462 000
Total Budget R39 867 800 of which only R31 850 950 is funded.