Lekwa Local Municipality 2013/14 - Co-operative Governance and ...

Tariff PolicyTariffs represent the charges levied by Council on consumers for the utilization of services provided by theMunicipality and rates on properties. Tariffs may be calculated in various different ways, dependent upon thenature of the service being provided. Tariffs may be set in such a manner so as to recover the full cost of theservice being provided or recover a portion of those costs, or to bring about a surplus that can be utilized tosubsidize other non-economical services.Section 74 of Local Government: Municipal Systems Act 2000 (Act 32 of 2000) as amended provides that: Amunicipal council must adopt and implement a tariff policy on the levying of fees for municipal services providedby the Municipality itself or by way of service delivery agreements, and which complies with the provisions of thisAct, the Municipal Finance Management Act and any other applicable legislation”The objective of the tariff policy is to ensure the following:The tariffs of the Municipality conform to acceptable policy principles.Municipal services are financially sustainable.There is certainty in the Council, of how the tariffs will be determined.Tariffs of the Municipality comply with the applicable legislation; andTariffs should take into consideration relief to the indigent.Property Rates PolicyRates are levied in accordance with the Act as an amount in the rand based on the market value of all ratableproperty contained in the municipality’s valuation roll and supplementary valuation roll.As allowed for in the Act, the municipality has chosen to differentiate between various categories of property andcategories of owners of property as contemplated in clause 7 and 8 of this policy. Some categories of property andcategories of owners are granted relief from rates as contemplated in clause 11 to 13 of this policy. Themunicipality however does not grant relief in respect of payments for rates to any category of owners orproperties, or to owners of properties on an individual basis. There would be no phasing in of rates based on thenew valuation roll, except as prescribed by legislation and in accordance with clause 16 of this policy.The rates policy for the municipality is based on the following principles:Equity- The municipality will treat all ratepayers with similar properties the same.Affordability- The ability of a person to pay rates will be taken into account by the municipality. In dealingwith the poor/indigent ratepayers the municipality will provide relief measures through Exemptions,reductions or rebates.Sustainability- Rating of property will be implemented in a way that: Firstly; it supports sustainable localgovernment by providing a stable and buoyant revenue source within the discretionary control of themunicipality; and secondly; supports local social economic developmentCost efficiency- Rates will be based on the value of all ratable property and will be used to fundcommunity and subsidized services after taking into account surpluses generated on trading (water,electricity) and economic (refuse removal, sewerage removal) services and the amounts required tofinance exemptions, rebates, reductions and phasing-in of rates as approved by the municipality fromtime to time.Fixed Asset Management PolicyA fixed asset is defined in GAMAP 17 as a tangible item of property, plant or equipment held by a municipality foruse in the productions or supply of goods or services, for rental to others, or for administrative purposes, andwhich is expected to be used during more than one reporting period (financial year). A fixed asset is thus anassessment, either movable or immovable, under the control of the municipality, and from which the municipality231 | P a g e