Development Contributions
Witzenberg Municipality
30 October 2013
Definitions
• "External / Bulk Services” means all primary
engineering services, i.e. engineering services that
serve the town as a whole or, alternatively, that serve
the major part of the town/suburb and include raw
water storage dams, water source developments,
reservoirs, water purification works, main water supply
and feeder pipelines together with main pump
stations, waste water treatment works, sewer mains
together with main pump stations, classes 1, 2 and 3
roads, main stormwater channels/pipelines, main substations together with associated works and
equipment;
• "Internal Services” all engineering services
found within the bounds of the development
such as water reticulation, sewerage, roads
and stormwater drainage, together with all
associated services and equipment.
• "Link Services” which means all engineering
services that are necessary to connect the
internal services to the external or bulk
services.
• Fixed costs (an average tariff based on infrastructure
need. Because it would be complicated, impractical and
time-consuming to calculate the exact contribution for
each development on a case-by-case basis)
MUNISIPALE DIENSTE
1. WATER
KAPITAAL
BYDRAE
Tulbagh Dorp Tulbagh Buite PAH
Ander
R1 776
R1 874
R1 878 R1 686
2. RIOOL
R6 880
R7 262
R7 274 R6530
3. STRATE
R3 016
R3 185
R3 190 R2 865
4. STORMWATER
R1 578
R1 666
R1 669 R1 498
R13 250
R13 987
R14 011 R12 579
TOTAAL
• Actual / Direct costs (the cost to upgrade or establish
infrastructure either because no bulk services available
or only partly available. Calculated on case-by-case
basis.)
Principles
• Council’s programme in terms of the IDP is
aimed at basic human needs and hence it
does not necessarily develop additional
services capacity for private developments.
• There is no legal obligation on Council to
provide municipal services to land simply
because the owner wishes to develop his or
her land.
• Private developments need to carry the cost
of infrastructure provision.
Policy
• Engineering service contributions are financial or
equivalent contributions made to a municipality
by an applicant, usually a property developer,
who has been granted enhanced land use rights
(re zoning) in order to develop a piece of land.
• Contributions pay towards the increase impact on
municipal services such as roads, water,
stormwater and sewerage, which have either
already been provided or which must still be
provided by the municipality.
• The developer may connect to the external (bulk)
services provided that there is sufficient capacity.
• The developer is responsible for the installation
of all the internal and link services required for
the development.
• The developer pays engineering service
contributions according to the municipalities
approved tariffs for the increased demand on
bulk services (fixed cost).
• In the event that external (bulk) services are not
available or insufficient the developer has the
option to construct/upgrade the service at his
own cost and to a standard agreed with the
municipality (actual/direct cost).
Development contribution triggers
a)
Subdivisions
All subdivisions resulting in an increase in the
number of units and/or erven.
a)
Rezonings
Any rezoning that will have an impact on bulk
services i.e. Re-zonings from residential to
business/industrial,
from
Agricultural
to
commercial, from commercial to residential, etc.
a)
Increase in land-use
Application for additional bulk / GLA / Coverage
a)
Subsidised housing
100%
discount
contributions.
a)
Social (GAP) housing
Social housing aims to provide housing
opportunities to a specific lower income group (R3
500 – R15 000). The levy will be charged at 50% of
a residential unit levy.
on
engineering
*refers to the number of additional units/erven allowed as a result of the rezoning/subdivision.
service
Practical Example – Ceres Golf Estate
Development
• 296 units over 3 phases
• 1st phase 83 units
• GLS Report showed bulk water items that needs
upgrading (to accommodate the golf estate together
with other development areas):
• Incremental cost to developer (whole
development):
• Cost for phase 1 (83 units)
Capital Contribution as on 8 2 2013 for Ceres Golf Development
Fixed Cost
Description Fixed
Water
Sewer
Roads
Storm water
Total
Actual Cost
Total Cost
Storage
Amount (incl
Capacity
Estimated
Number of stands vat)
needed (m3) Cost (incl vat)
1 686.00
83
139 938.00
453 752.03
453 752.03
6 530.00
83
541 990.00
541 990.00
2 865.00
83
237 795.00
237 795.00
1 498.00
83
124 334.00
124 334.00
12 579.00
83
1 044 057.00
1 357 871.03
Points needing clarification
• How do we deal with offsets? When does
offsets apply? Is our approach in line with
section 49(4) of SPLUMA in terms of offsets?
• Our contributions only deal with civil services,
what about social services?
• Agree on certain principles and standard
calculation method.
• Simplicity required as far as possible.
THE END