Amendment Act, No 97 of 1996 (k): the development of a uniform for the structuring of user tariffs; assessment process. Electricity Regulation Act, No 4 of 2006 Section 4: Powers and Duties of Regulator (a)(ii): Regulate prices and tariffs Section 16: Tariff Principles Segments set-up to assist in the extraction of information to use in the rates assessment process. Municipal Fiscal Powers and Functions Act, No 12 of 2007: Definition for “municipal base tariff” Segments set-up to assist in the extraction of information to use in the rates assessment process. REGULATIONS Municipal Regulation on a Standard of Accounts (mSCOA) Annexure: Costing Segment 7. This segment provides for a classification structure for secondary cost elements and acts as a cost collector in determining inter alia total cost of a service or function, identification of productivity inefficiencies and tariff determination of municipal services. Classification codes are identified with reference to departmental charges, internal billing and activity based recoveries for purposes of recording specific activities and functions in terms of their unit costs and cost categories. Segments set-up to assist in the extraction of information to use in the rates assessment process. CIRCULARS: MFMA Circular No. 42 Funding a Municipal Budget, 30 March 2007 Accrual based Financial Management The focus on accrual based financial management will assist decision-makers with comprehensive information when funding strategies are discussed prior to adoption of the budget. Discussions on proposed borrowing, the utilisation of grants, and setting of appropriate tariffs to ensure ongoing sustainability of existing and proposed services will be strengthened. Information will also assist in the review of ratepayer’s/consumers contributions towards services, for the years covered by the Segments set-up to assist in the extraction of information to use in the rates assessment process.
Budget Management issues with in previous MFMA Circulars Water and Sanitation Tariffs must be cost MFMA Circular No. 70 Municipal Budget Circular for the 2014/15 MTREF, 3 December 2013 Revising Rates, Tariffs and Other Changes Operating Revenue process to approve electricity Tariffs Eskom’s Bulk Tariff Increases Segments set-up to assist in the extraction of information to use in the rates assessment process. MFMA Circular No. 72 Municipal Budget Circular for the 2014/15 MTREF, 17 March 2014 Revising Rates, Tariffs and Other Changes Operating Revenue process to approve electricity Tariffs Eskom’s Bulk Tariff Increases Segments set-up to assist in the extraction of information to use in the rates assessment process. MFMA Circular No. 74 Municipal Budget Circular for the 2015/15 MTREF Regulation of a Standard Chart of Accounts (SCOA) for Local Government Operating Revenue Management Accounting and Tariff Setting Interpretation of Section 43 of the MFMA (NERSA) (Deals with the applicability of Tax and Tariff Capping on Municipalities and the NERSA process to approve Electricity Tariffs) Eskom Bulk Tariff Increases Water and Sanitation Tariffs must be Cost Effective Budgeting for Revenue Foregone and Free Basic Service to Indigents Tabling Funded Budgets Segments set-up to assist in the extraction of information to use in the rates assessment process. MFMA Circular No. 75 Municipal Budget Circular for the 2015/15 MTREF The Medium Term Budget Review 2015 Shaping Development to Support Growth in Cities Headline Inflation Forecasts Eskom Bulk Tariff Increases Electricity Levy Increase Segments set-up to assist in the extraction of information to use in the assessment process,