Municipality Transparent Tariffs

Tariffs provide one of the most significant sources of revenue for a municipality. They are also a key point of engagement between local government and the people they serve. A municipality speaks directly to its citizens when it sends them an invoice for services rendered. Having citizens or customers understand the tariff charged is therefore a key component for transparent local governance.

Tariffs offer a unique opportunity for municipalities to inform, educate and influence their customers and to establish a communication which is transparent, accurate and customer-oriented. By communicating how tariffs are calculated and which strategic decisions the municipality is making around its finances, consumers' willingness to pay may be affected.

The purpose of publishing tariffs is to assist municipalities to communicate transparent and understandable tariffs to citizens. It takes citizens' concerns regarding tariffs as its starting point, and suggests a set of basic methods and some good ideas that can be used to explain tariffs.

When used optimally, the transparent tariff guide will guide the municipality on how to charge to achieve the various policy objectives such as budget sustainability, efficiency, equity and more.

Why Transparent Tariffs?

• For a solid budgeting and financial discipline foundation.
• The need for municipalities to properly manage their revenue.
• Equity and transparency in revenues raised by municipalities.
• Ensure a close correlation between annual tariffs and the costs.
• Ensure that municipalities generate trading surpluses or costs coverage.
• Ensure the overall sustainability of municipal service delivery.
• To ensure that the quality of service delivery rendered corresponds with the with the cost incurred.

The guide is written with a citizen-oriented focus and is tailored for small- to medium-sized municipalities, where small but tangible changes in the communication on tariffs are preferred over more complex options.

To get started on Transparent Municipal Tariffs, download:

1. Communicating Tariffs
2. Developing a Tariff Policy
3. Setting Tariffs
4. The User Guide

This information is targeted at municipal officials looking for inspiration on how to improve communication on tariffs and councillors who need to respond to the concerns of their constituents.

The full package of calculating municipality tariffs documents can be downloaded:

Category	Files
Main Menu and Affordability Test	Main Menu Interactive Tariff Affordability Test Interactive Tariff
Electricity	Electricity Interactive Tariff
Non-Trading Services Interactive Tariff Document	Submenu Strategic Decision 1 Strategic Decision 2 Strategic Decision 3 Strategic Decision 4 Strategic Decision 5
Water	Water Interactive Tariff
Sanitation	Sanitation Interactive Tariff
Solid Waste	Solid Waste Interactive Tariff

Legal Considerations

The guide has to be used with full compliance to the Municipal Finance Management Act and other laws relevant to municipal governance in South Africa.

Important Contacts
Western Cape Government Treasury
Tel: 021 483 4709
Fax: 021 483 3855
E-mail: westerncape.treasury@westerncape.gov.za