1. Development Contributions George Municipality

2. BASIS FOR DETERMINING DEVELOPMENT CONTRIBUTIONS PSDFPSDF George Municipality’s SDFGeorge Municipality’s SDF Master Plans Master Plans -Water -Sewer -Roads -Stormwater -Solid Waste -Bulk Raw Water Resources Plan

3. PRINCIPLE S APPLIED Payable in terms of Section 42 of the land use Planning Ordinance (1985) & Section 75A of the local Government Municipal Systems Act 32 of 2000Payable in terms of Section 42 of the land use Planning Ordinance (1985) & Section 75A of the local Government Municipal Systems Act 32 of 2000 Must be defined in a Council PolicyMust be defined in a Council Policy Cost of providing bulk services must be financiallyCost of providing bulk services must be financially sustainable and based on sound principles sustainable and based on sound principles Private Development is responsible to cover the costPrivate Development is responsible to cover the cost of bulk services required to accommodate this development of bulk services required to accommodate this development Burden of financing services to accommodate newBurden of financing services to accommodate new development must not be borne by existing rate payer development must not be borne by existing rate payer

4. PRINCIPLE S APPLIED cont. Low Cost Housing contribution covered by MIG allocationLow Cost Housing contribution covered by MIG allocation (inadequate to cover actual cost, and inevitably supplemented from municipal income base) Contribution payable must be fair, transparent, reflect actual costContribution payable must be fair, transparent, reflect actual cost Private development carries the full cost of link services andPrivate development carries the full cost of link services and dedicated services Council may not fund the provision of certain services on private property (legislation) eg roadsCouncil may not fund the provision of certain services on private property (legislation) eg roads Cost of infrastructure required is expressed as a cost perCost of infrastructure required is expressed as a cost per equivalent erven

5. BASIC STEPS TO DETERMINE DEVELOPMENT CONTRIBUTIONS Consultation with Town Planning – provide direction on Consultation with Town Planning – provide direction on future growth areas and densification patterns future growth areas and densification patterns Adaptation of Master Plans accordingly Adaptation of Master Plans accordingly Costing of services required to accommodate all new Costing of services required to accommodate all new growth and development (current construction costs) growth and development (current construction costs) Equivalent erf defined in accordance with Red Book (Guideline Equivalent erf defined in accordance with Red Book (Guideline on Human Settlement Planning & Design) on Human Settlement Planning & Design) Calculation of DC payable per equivalent erf = Calculation of DC payable per equivalent erf = Total service cost / Number of equivalent erven to be serviced Total service cost / Number of equivalent erven to be serviced Annual revision – zero based cost to inform tariffs list Annual revision – zero based cost to inform tariffs list Principles and calculation of DC’s workshopped with Principles and calculation of DC’s workshopped with Town Planners and Consulting Engineers Town Planners and Consulting Engineers

6. Definitions Equivalent erf: A property of which the hypothetic average daily water usage does not exceed 1000 L / day A property of which the hypothetic design capacity of 10kVA before diversity maximum demand (BDMD) A property of which the hypothetic solid waste generated is equal to that of a three-bedroom residential unit Transfer: Transfer in relation to immovable property, transfer of the relevant property in terms of the deeds Registries Act 47 of 1937 or any suchlike transfer of ownership A Cash payment equal to 72m² x market value per m² for public open space

7. When are DC’s Payable Payable Payable on time of transfer or submission of approved building plans, whichever takes place first Developer becomes liable for payment of DC when: iExtending exiting floor area; iiChange of approved building plans; iiiChange of land use; ivNew building be erected; vElectrical supply be increase

8. Overview of Capital Contribution DC for roads calculated in accordance with applicable standard formula (refer to COTO) DC payable by registered owner of the property concerned at the time when CC is due. DC payable in terms of Section 75A of the Systems Act, unless the amount is replaced by a condition in terms of the Land Use Planning Ordinance. (refer to service agreements) DC may be refunded, less 10% administration cost, if the applicant, who already paid DC, but chooses not to exercise his rights. DC may not be paid in advance, to avoid tariff increase.