OVERBERG WATER
1. AREAS AND MUNICIPALITIES SERVED, ACHIEVEMENTS AND CHALLENGES
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Relationship with Municipalities
Non-Financial Performance
Audit Report
Income Statement
Balance Sheet
Financial Indicators & -Ratios
Bulk Water Sales & Revenue
Bulk Water Tariffs
Expenditure (Bulk Provision)
Reserve
2. THE TARIFFS PROPOSED BY THE DEPARTMENT ON BULK WATER
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Graphic presentation of tariffs
Principles of tariff structure
Process
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3
4
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Serious work injuries → zero
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Absenteeism → 2,7%
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Staff turnover → 9%
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Labour unrest → zero
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Water quality → Class 1 (SANS 241, 2006)
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Water loss → 4,8%
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Unqualified Audit
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Positive report on systems & procedures
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Relevant legislation adhered to
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Consolidated Income Statement
Income from and expenses financed through
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Bulk Water Sales
Retail Water Sales (as secondary activity)
Other Secondary Activities
Reserve
Total Income: R25 017
R’000
Total Expenses: R22 613
Other
1%
Investments
8%
TWK
8%
other
20%
Admin Fees
4%
Direct Labour
45%
Depreciation
8%
Chemicals
8%
Operating
79%
Raw Water
2%
Maintenance
7%
Energy
10%
7
R’000
Net Income: R2 404
INSTALLMENT
DWA LOAN
R1 203
CHANGES IN
WORKING CAPITAL
R1 088
CONTRIBUTION TO
RESERVE
R0
( R113 ) - shortfall
To be financed through
reserve
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CAPITAL EMPLOYED
R74 139
EMPLOYMENT OF CAPITAL
Current
Liabilities
7%
Cash
1%
Receivables
6%
Loan DWA
34%
Equity
59%
Inventory
1%
Short-term
Investments
20%
Investments
13%
PPE
59%
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Indicator / Ratio
Net Profit %
(Net Profit ÷ Sales x 100)
Return on Assets
(Net Income ÷ Total Assets x 100)
Return on Equity
(Net Income ÷ Equity x 100)
Current Ratio
(Current Assets ÷ Current Liabilities)
Debtors Days (Water Consumers)
(Debtors ÷ Sales x 365)
Debt to Assets
(Total Debt ÷ Total Assets x 100)
Cost of Capital
(Interest paid ÷ Total Debt x 100)
Debt to Equity
(Total Debt ÷ Total Equity)
Asset turnover (times / year)
(Sales ÷ Total Assets)
CAPEX
2008/09
2007/08
12,07%
13,18%
3,24%
3,55%
5,47%
6,16%
4,32
6,18
73 days
65 days
41%
42%
0%
0%
69%
74%
0,27 x
0,27 x
R4 mil
R3,6 mil
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BULK WATER SALES : VOLUME
(2,1%)
4 259 546
2,177,237
(0,6%)
4 171 830
4 148 761
2,166,872
2,135,262
BULK WATER SALES : R
7,1%
m3
4,3%
2006/2007
2,004,958
2007/2008
Mun
10 521 641
2,013,499
2008/2009
m3
2,082,309
10 971 913
11 746 761
6,085,497
5,377,775
5,698,873
5,143,866
5,273,040
5,661,264
2006/2007
2007/2008
2008/2009
Farmers
Mun
Farmers
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2008/2009
2007/2008
R 2,83
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2006/2007
R 2,47
R 2,63
6,5%
7,7%
2007/2008
2008/2009
R/c per m3 sold
R/c per m3 sold
2.63
0.10
2.73
Water Sales
Other Income
2.83
0.11
2.94
0.06
0.35
0.31
1.22
0.06
0.09
0.58
2.67
Raw Water
Electricity
Chemicals
Direct Labour Cost
Maintenance
Other Admin, Oper.
Depreciation
0.11
0.49
0.43
1.23
0.09
0.10
0.66
3.11
0.06
-0.17
R’000
HR &
Pensionars,
344
Operating
Capital, 3 672
TOTAL: R 24 906
Furniture,
Equipment
& Vehicles,
1 929
Infrastructure,
18 883
RESERVE FOR INFRASTRUCTURE REFURBISHMENT : R18,8 MILLION
5 YEAR INFRASTRUCTURE REFURBISHMENT PROGRAMME
R45 MILLION
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 Graphic presentation of tariffs
 Principles of tariff structure
 Process
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1000
900
800
700
C/M3
600
500
400
300
200
100
0
HEIDELBERG/SLANGR.
CALEDON
WITSAND
0-6m3
235
196
521
6-15m3
260
226
548
15-30m3
396
278
735
30-40m3
470
362
800
PER HOUSEHOLD PER MONTH (VAT excluded)
Availability Fee:
VAT excluded
Caledon – R136 920 / per month
Heidelberg/Slangrivier – R47 220 / per month
Witsand – R13 475 / per month
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40m3+
552
464
860
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Availability fee of 30% of allocation.
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Sliding scale tariff – the higher the water use, the higher the unit cost of the tariff.
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The use on the sliding scale is based on the number of households as supplied by and
agreed with the municipality.
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The tariff structure supports WC/DU.
• A too high choice of allocation by the Municipality will result in a higher unit cost if the
consumption is low.
• The lower the consumption, the lower the unit cost.
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The effective cost of water and the water tariff is therefore in the hands of the
Municipality – it requires careful and sound planning and management from their side.
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At the same time Overberg Water has much more clarity and lower risk.
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Prescribed Process
Consultation Process
Response from National Treasury & Salga
Viability as result of tariff proposal
Impact on end users
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