Knysna Municipality adapts sewerage and water tariffs to cover service delivery costs
WATER and sewerage tariffs charged in 2017/18 failed to cover the costs associated with delivering the service, and Knysna council has now resolved to adapt accordingly to cover expenses incurred by these services.
Mayor Mark Willemse said that property rates were used to subsidise the service.
“Knysna Municipality was under-recov-enng costs for water and sewerage using the 2017/18 tariff structure, and we appointed a service provider to determine tariffs that would recover the cost of providing and maintaining the service”
Willemse said the initial sewerage tariffs workshopped were tabled in March 2018 as part of the draft IDP and budget and suggested an increase of 140%.
“During the public participation process that followed, the council received numerous submissions from the public. These were considered, and the sewerage tariffs were reduced to an 80% increase which represents costs reflective of self-sufficient services tariffs, “he said.
“It is essential that tariffs for services charges rendered by the municipality shall as far as possible recover the expenses associated with rendering of each service conccrncd. Trading and economic services will be ring-fenced and tariffs will be cost reflective and directly associated with the standard of service received.”
Willemse added that they realised the 2017/18 tariffs for sewerage and water caused unjust differentiation between sectional title units and multiple shops/units at freehold erven.
“While sectional title units were levied per registered units, some freehold erven were levied per premises irrespective of the number of units or shops situated on the property.
“It was decided to amend chargcs per premises in the 2017/18 financial year to a basic charge per business or shop unit per premises, per annum, in the 2018/19 financial year.
“Council resolved that a fixed basic-charge would be payable for each property connected to the sewerage reticulation network. per dwelling, per unit, per premises, irrespective of the number of toilets and urinals or the size of the dwelling, dwelling units, business units or shops per premises, “said Willemse.
He continued that revenues denved from property rates represent a critical source of income for municipalities to achieve their constitutional objectives.
“Incomc derived from property rates will be used to finance community and subsidised services, and not to subsidise trading and economic services.”
Community services include (but are not limited to) air-pollution control, fire-fighting services, local tourism, municipal planning, municipal public works needed to deliver functions as included in the constitution or any other law. fixed billboards and the display of advertisements in public places.
Further services are cemeteries, control of public nuisances and noise pollution, township development, local amenities and sport facilities, municipal parks and recreation. municipal roads, pounds, public places. street trading and lighting, traffic and parking, building control, cleansing, and unfunded mandates such as libraries.
Sewerage
Provision is made under item 4.3 of the council s Approved Tariffs for all properties not identified as residential to be charged per premises/business unit/shop unit per annum for the respective financial years.
Water
Provision is made under item 5.4.1.1 of council’s Approved Tariffs for all properties not identified as residential to he charged per premises/business unit/shop unit per annum for the respective financial years.
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