Rates rise by 10%
2008-06-05
May Saal
MUNICIPAL rates and taxes in Drakenstein will rise by 10,29% for small households and 9,29% for big households, according to the 2008/2009 budget accepted by the Drakenstein Municipal Council last week. The total budget of R973,7 million includes a consolidated capital budget of R233,2m and an operational budget amounting to R740,5m. Close to R428m is required for the next financial year to address all the backlogs (maintenance and replacement), but Drakenstein Municipality can only provide R109m. According to acting head of finance, Cavin Pietersen, the expected monthly account of the small household should rise by 10,29%, from R855 to R973, after 1 July. This is based on an erf of 215 square metres, a house of 58 square metres, 498 units electricity and 25kl water. Property tax on such a dwelling will increase from R121 to R130 (7,5%) while the basic electricity levy will increase from R116 to R130 (12%). The basic water levy increases by 10% from R11,8 to R13 and consumption also rises by 10% from R81 to R89. Sanitation increases from R39 to R42 (7,5%). Refuse will increase by 7,5% from R97 to R105. From 1 July the expected monthly account for a big household (based on an erf of 1 094 square metres, a house of 317 square metres, 1 000 units electricity and 103kl water) will increase by about R185 from R1993 to R2178 (9,29%). Property tax on such a house will increase by 7,5% from R804 to R864 while the electricity basic levy will increase from R116 to R130 (12%) and electricity consumption from R370 to R414 (12%). The basic levy for water increases from R11,08 to R13,07 (10%) and for water consumption from R361,75 to R397,93 (10%). Sanitation increases from R84,43 to R90,76 (7,5%) and refuse removal from R97 to R105 (7,5%). However, all households where the combined income is below R1 880 per month, qualify for a rebate of R110 per month on municipal services such as refuse removal and sewerage. In total 15 000 households in Drakenstein will benefit financially from this subsidy. The current limits for pensioners to qualify for a 20% rebate on property tax, remain R850 000. The combined household income limit, currently capped to government pension for both pensioner and spouse, is to be increased by 75%. The free services that Drakenstein renders, will amount to a total of R37,4 million during the budget year. This includes expenditure on the net free water for every household (more than R4,8m), free electricity for each household (R4,5 million), rebates for properties with value below R75 000 (more than R2,6 million), as well as the free removal of refuse from skip bins (R1,8m). For more information about these free services and rebates, visit the Civic Centre in Paarl.
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