AUGMENTATION fees charged for the construction of an additional dwelling to an existing house or building on one erf, have been significantly reduced.
“Previously, the augmentation fees alone amounted to almost R80 000. Add to that an additional R20 000 for consent use application, building plan tariff and building deposit,” said Kouga Speaker, Hattingh Bornman.
“Thus, residents would have had to pay almost R100 000 before construction has even started. This is irrespective if residents wanted to have a garage or granny flat built.”
That has now changed.
In line with the new tariff structure, any extension less than 60m² on one erf will be at no charge.
According to Hatting, any extension more than 60m² on one erf, but less than 120m² will cost residents 20% of all augmentation fees. “This amounts to just over R14 700,” he said.
“Additional dwellings more than 120m² on one erf, will be charged at 40% of all augmentation fees. This amounts to almost R30 000.”
Not stopping there, rezoning applications have been reduced by 23%, while rezoning applications specific to RDP and low-cost housing areas have been decreased by 45%.
“Compared to the previous cost of over R5 700 and R2 700 respectively, this translates into a saving of more than R1 400,” said Hattingh.
He said that the consent use application fee was reduced by 48% and residents now only must pay R3 450 instead of R6 645.50. The various departure fee applications also decreased by 23%, while the departure application fee used in RDP and low-cost housing was reduced by 45% – from R3 136 to R1 725.
“Considering new developments, the electrical augmentation fee for new developments was reduced by 30%, while the refuse augmentation fee was decreased by 10% – saving residents close to R4 400 and over R300 respectively,” said Hatting.
Before the reduction in fees, residents had to pay over R14 500 for electricity and over R3 200 for refuse.
“Not only will the new augmentation fees, that came into effect on July 1, 2021, support local development, but it will also spur economic growth. It will drive job growth and stimulate local, national, and international investment,” said Hattingh.
“It will, furthermore, result in a more sustainable revenue stream for the municipality as rates and taxes will increase according to the total square metreage of the building or buildings on a specific erf.
“The additional money generated, will be used to provide even better service delivery to all residents of Kouga.”