The following budget related policies have been approved by Council, or have been reviewed / amended and / or are currently being reviewed / amended, in line with National Guidelines and Legislation.
• Tariff Policy
• Asset Management Policy
• Credit Control and Debt Collection Policy
• Cash Management and Investment Policy
• Rates Policy
• Supply Chain Management Policy
• Veriment Policy
• Funding and Reserves Policy
• Liquidity Policy
Policies which have been amended according to the recommendation below will be available at libraries in the municipal area and the website of the municipality.
Herewith information regarding the amendment of policies:
(a) RATES POLICY
The Municipal System Act requires Council to adopt a Rates Policy. The general financial management functions covered in section 62 of the MFMA includes the implementation of a Rates Policy and the policy must be in line with the Municipal Property Rates Act. Specific legislation applicable to each service has been taken into consideration when determining this policy.
The following amendments are proposed:
• Part 2 Paragraph 7 – Insert new paragraph: “ municipality will levy and recover property rates on monthly basis or recover annually as may be agreed with the owner of the property – s26 MPRA”
• Paragraph 3.2 – “Owners of property qualifying for exemptions and rebates, excluding exemptions and rates prescribed by the Act, must apply annually on the prescribed form before 31 May for exemptions and rebates on rates.
• Part 2 Paragraph 6 Addition: All the new property improvements must be included for the supplementary valuation from the date the building plan is approved.
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(b) Tariff Policy
The following amendments are proposed:
• Paragraph 7(1) (b) (viii) – Water, currently the policy states: “Every housing and business unit where a separate electricity meter is installed is considered to be a consumer point, except where more than one electricity meter has been installed on a single residential property” Proposed amendment: “Every housing and business unit where a separate electricity meter is installed is considered to be a consumer point.”
• Paragraph 7(2) (b) (vi) – Electricity, currently the policy states: “Every housing and business unit where a separate electricity meter is installed is considered to be a consumer point, except where more than one electricity meter has been installed on a single residential property” Proposed amendment: “Every housing and business unit where a separate electricity meter is installed is considered to be a consumer point.
• Insert Paragraph 7(3)(b) – Refuse “ where a property is not developed but reasonably the refuse removal service can be delivered, an availability tariff will be charged”
• Paragraph 7(4) (e) Currently the policy states: “Every housing and business unit where a separate electricity meter is installed is considered to be a consumer point, except where more than one electricity meter has been installed on a single residential property” Proposed amendment: “Every housing and business unit where a separate electricity meter is installed is considered to be a consumer point.
(c) Credit Control and Debt Collection Policy
The following amendments are proposed:
• Paragraph 6, insert sub-par- All new appointees (councillors and staff members) indebted to the municipality must enter into an agreement with the municipality for the payment of arrear accounts via automatic salary deductions, informed by the requirements of this policy.
• Paragraph 7, insert sub-pararagraph – (a)Municipality will only enter into agreement with the registered owners or beneficiary of the property, (b) Council reserves the right to sign contracts with tenants at its own discretion, (c)All existing contracts for service delivery with tenants will be maintained and all new service contracts will be with the owners of property, (d) If an applicant or
BUDGET MTREF 2018/2019 – 2020/2021
owner has an outstanding amount that is due and payable to the municipality the arrears must be paid; or an agreement for payment of arrears must be concluded with the municipality before an application for services can be approved, (e) No new water and electricity connections will be made without approved building plans, (f) The pre-paid electricity meters will be encouraged for all new connections
• Unclaimed deposits (New paragraph)
• Unclaimed direct deposit is any amount of money legally paid into the municipal primary bank account without any traceable reference or documentary proof on how the deposit should be allocated and that remains unclaimed for a period of three (3) months.
• After all processes to identify the unallocated deposits have been exhausted and the period has expired all unclaimed and/or unallocated deposits will be receipted in a register and kept by the municipality.
• The register will be maintained and updated regularly and be kept for a period of three (3) years.
• After the unclaimed and/or unallocated deposit have been deposited in the register the rightful owner thereof can claim the deposit within a period of three (3) years from date the deposit were deposited or become unclaimed subject to documentary proof of being provided by the claimant of the deposit.
• The value of unclaimed deposit and/or unallocated direct deposit will be recognized as a liability in the financial statement of the municipality.
• Should the unclaimed deposit not be claimed within the period of three (3) years the deposit will be written off from the register and be receipted as revenue in that financial year.
• Customer assistance programs: Water leakages (New paragraph)
• If the leakage is on the side of the consumer the consumer is responsible for the payment of the full account.
• The consumer has the responsibility to control and monitor his/her consumption
• The consumer is responsible for private repairs of water pipes behind the meter.
• Abnormal water leakage will be dealt with as follows:
• The municipality manager may repair the water leakages at cost for non-indigent households and at no-cost for indigent households, or
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• A customer will qualify for a water leakage discount upon application within 30 days after the leak has been repaired and:-
• The leak was under the surface and/or not easily detectable on the surface;
• The leak was repaired within 72 hours since its detection;
• The customer applied only once in a cycle of 24 months for a discount; and
• Suitable proof of repair has been submitted containing the following information:-
• Date of repair; and
• Confirmation that the leak was under the surface and/or not easily detectable on the surface.
• Discount for household usage will be calculated over the period the leak was present and will be equal to the consumption above the normal consumption of the customer at the 0-6 kl tariff.
BUDGET MTREF 2018/2019 – 2020/2021