PART 1 ANNUAL BUDGET
1.4 O PERATING R EVENUE F RAMEWORK
1.4.5 Other Tariff Increases
The Finance Department has embarked on a process to compile a consolidated report of all sundry tariffs of all the departments. The tariffs were determined by departments and consolidated by the Finance Department. Sundry tariff increases were guided by the CPI rate in most cases. In cases where the increase is not in line with the CPI rate as provided by National Treasury in MFMA Circular 98, comments/motivations from departments were provided.
Table 14 Summary of the Sundry Tariff Increases
NAME OF TARIFF AND SCHEDULE NO.
CURRENT TARIFFS INCREASES
2019/20
PROPOSED TARIFFS INCREASES
2020/21
COMMENTS
Financial Services (Schedule 6)
5.2% 4.9% In line with CPI
Building Plans & Related Services (Schedule 7)
Ranges between 2.04% - 5.56 %
Ranges between 3.09% - 5 %
The determination of the tariffs was set in line with the tariff structure of other metropolitan municipalities and also in line with the budget instructions imposed for the determination of revenue, taking into consideration National Treasury guidelines and revenue targets set for Building Control revenue.
Roads Related Services (Schedule 8)
5.2% 4.9% In line with CPI
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NAME OF TARIFF AND SCHEDULE NO.
CURRENT TARIFFS INCREASES
2019/20
PROPOSED TARIFFS INCREASES
2020/21
COMMENTS
EMPD Services (Schedule 9)
5.2% 4.9% The determination of the
tariffs increase was set in line with the Consumer Price Index (CPI) and to uphold market related values. To consider the affordability of the service rendered to the community by looking to the fees charged, and thus determine what it is actually charging the EMPD to render the service – thus not trying to make a profit from the community.
Transport Planning (Schedule 10)
5.2% 4.9% In line with CPI
Disaster Management Services (Schedule 11)
5.2% 4.9% The determination of the
tariffs increase was set in line with the Producer Price Index (PPI) and to uphold values.
The tariffs increased are motivated by the tariffs in the neighbouring Metros.
Emergency Services (Schedule 12)
5.2% 4.9% The determination of the
tariffs increase was set in line with the Producer Price Index (PPI) and to uphold values.
The tariffs increased are motivated by the tariffs in the neighbouring Metros.
Libraries & Information Services (schedule 13)
No increase 4.9% In line with CPI
Library Auditorium (schedule 14)
No increase 4.9% In line with CPI
Arts, Culture & Heritage (schedule 15)
No increase 4.9% In line with CPI
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NAME OF TARIFF AND SCHEDULE NO.
CURRENT TARIFFS INCREASES
2019/20
PROPOSED TARIFFS INCREASES
2020/21
COMMENTS
Sports & Recreation (schedule 16)
No increase 4.9% increase for Sport and Recreation facilities
and 12.9%
Floodlights and Non Sporting Events.
In line with CPI
The higher tariff is due to the non recreational nature of the events
Removal of Street trees (schedule 17)
5.2% 4.9% Tariffs for the removal of
street trees in the City of Ekurhuleni are amended annually. The tariffs were created for the unauthorised removal of Council owned trees to assist the council in protecting the valuable green assets it has and its green heritage.
Cemeteries &
Crematoriums (schedule 18)
5.2% increase for CoE Residents and
6.5% for Non- Residents
4.9%increase for CoE Residents and
6.9% for Non- Residents.
The cemetery tariff increase is based on CPI which is recommended that a minimum nominal percentage increase be applied to cover inflationary increases in costs and reduce overall subsidization of interment.
Increase in tariffs is for a basic adjustment to improve councils cost recovery and to recoup expenses from all burial subsidies.
Advertising Signs (schedule 19)
10% 4.9% The determination of the
tariffs was set in line with the tariff structure of other metropolitan municipalities and also in line with the budget instructions imposed for the determination of revenue, taking into consideration National
39
NAME OF TARIFF AND SCHEDULE NO.
CURRENT TARIFFS INCREASES
2019/20
PROPOSED TARIFFS INCREASES
2020/21
COMMENTS
Treasury guidelines and revenue targets set for Outdoor Advertising revenue.
City Planning (schedule 20)
5.2% 4.9% The tariffs increase was set in
line with the tariff CPIX, and fees were compared with the fees from Tshwane and Joburg Metros and in some cases the new fees were amended to compare better with that of other Metros.
Economic Development (schedule 21)
5.2% 4.9%
Environmental Health
Services (schedule 22) 5.2% 4.9%
Municipal Bus Services (schedule 23)
Ranges Between 4% - 25%
Ranges Between 3.85% - 4.35%
In order to ensure that the EMM bus fares are market- related compared to the fares charged by alternative modes of transport, cognizance needs to be taken of the tariffs being charged by the mini-bus taxis and other bus operators such as City to City, who currently operate the routes previously operated by Putco, in the same area. To cover various other factors such as salaries, maintenance and repair costs and other general expenses have necessitated the required increase in the bus tariffs.
Hire of or use of Parks Facilities (schedule 24)
5.2% 4.9% The increase is necessary to keep abreast with inflation and the rising costs of maintenance .The cost of hiring facilities also allows income generation for the
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NAME OF TARIFF AND SCHEDULE NO.
CURRENT TARIFFS INCREASES
2019/20
PROPOSED TARIFFS INCREASES
2020/21
COMMENTS
Council which in turn ensures that a cost effective service can be rendered to the community
Real Estate (schedule 25)
Ranges Between 5% - 6%
4.9% The determination of the tariffs was set in line with the tariff structure of other metropolitan municipalities and also in line with the budget instructions imposed for the determination of revenue, taking into consideration National Treasury guidelines and revenue targets set.