taritt to make the tariff more resilient. Existing Restriction tariffs Water) Level 1 Level 2 Level3 Level 4 Lovel 5 Laval 6 Step 1 (0-6kl) 4.00 4.00 18.75 Step 2 [6-10.5k1] 15.57 15,57 15.57 26.25 46.00 Step 3 (10.5-20kh 18.22 20.04 21.87 22.78 46.00 100.00 Step 4 [20-35ki] 26.99 32.65 36.43 38.32 100.00 300.00 Step 5 (35-50KI] 33.33 4500 61.66 99 99 300.00 800.00 Step 6 [+50k] 443.97 97.71 209.29 265.12 800 DO 800.00 Commercial 19.63 21.59 23.55 24.54 37 50 150.00 2] Annexure C Responses to financial challenges Primary goals: Recover full costs including cost of water resilience program and adequate depreciation. It is a legal requirement to balance budget. Mechanisms to achieve goals: 1. In-year tariff revision for 2017/18 - establish level 5 and 6 restrictions tariffs to increase incentives to reduce demand. 2. Implement a drought charge to assist with the major financial challenges of creating a water resilient city with diverse sources of supply. 3. Include structural changes in the 2018/19 tariff to make the tariff more resilient. Retain affordability for poor people and improve payment levels Existing Restriction tariffs (Water) Level 5 Level Level 1 Level 2 Level 3 Level 4 18.75 4.00 4.00 4.00 Step 1 [0-GKI] 4.00 Increase resilience of tariff to shocks (greater revenue stability in face of drought conditions which the city is currently facing and is likely to face again in the future) 460 26.28 15.57 15.57 15.57 1557 Step 2 (6-10.5k] 46.00 100 18.22 Step 3 (10.5-20k!) 20.04 21.87 22.78 100.00 300 26,99 Step 4 [20-35ki] 3265 36.43 38.32 300.00 80 33.33 4500 6166 Step 5 [35-50k!] 9999 800.00 80 Tariff reflects value of water and supports sustainability (including adequate cash- backed depreciation to replace assets) 97 71 43.97 209 29 265.12 Step 6 [+501) 37 50 24 54 Commercial 19.63 23.55 21.59 [2] 4.3.2 How much can this household expect to pay under level 6 restrictions if they only use the recommended amount calculated in QUESTION 4.3.1? (remember 1 0001 = 1k!) Use this table on the ANSWER SHEET to calculate the amount: Rate ke Amount Consumption 0-6 kl 6-10, 5k 10,5-20 kl 20-35 kt 35-50 k 50 kt +. TOTAL (6) 4.3.3 A household of 7 occupants in Pretoria, sent the following water-meter readings to their landlord: 31 March: 8557k 30 April: 8580 kt (5) What could they have expected to pay if they were under a Western Cape Municipality? 4.3.4 Instead of the amount in QUESTION 4.3.3 the Pretoria household's water bill was R349,80 for April 2018. Comment critically on what you think about this disparity and reflect on the meaning of the statement on Annexure C: "Tariff reflects value of water and supports sustainability". (3) taritt to make the tariff more resilient. Existing Restriction tariffs Water) Level 1 Level 2 Level3 Level 4 Lovel 5 Laval 6 Step 1 (0-6kl) 4.00 4.00 18.75 Step 2 [6-10.5k1] 15.57 15,57 15.57 26.25 46.00 Step 3 (10.5-20kh 18.22 20.04 21.87 22.78 46.00 100.00 Step 4 [20-35ki] 26.99 32.65 36.43 38.32 100.00 300.00 Step 5 (35-50KI] 33.33 4500 61.66 99 99 300.00 800.00 Step 6 [+50k] 443.97 97.71 209.29 265.12 800 DO 800.00 Commercial 19.63 21.59 23.55 24.54 37 50 150.00 2] Annexure C Responses to financial challenges Primary goals: Recover full costs including cost of water resilience program and adequate depreciation. It is a legal requirement to balance budget. Mechanisms to achieve goals: 1. In-year tariff revision for 2017/18 - establish level 5 and 6 restrictions tariffs to increase incentives to reduce demand. 2. Implement a drought charge to assist with the major financial challenges of creating a water resilient city with diverse sources of supply. 3. Include structural changes in the 2018/19 tariff to make the tariff more resilient. Retain affordability for poor people and improve payment levels Existing Restriction tariffs (Water) Level 5 Level Level 1 Level 2 Level 3 Level 4 18.75 4.00 4.00 4.00 Step 1 [0-GKI] 4.00 Increase resilience of tariff to shocks (greater revenue stability in face of drought conditions which the city is currently facing and is likely to face again in the future) 460 26.28 15.57 15.57 15.57 1557 Step 2 (6-10.5k] 46.00 100 18.22 Step 3 (10.5-20k!) 20.04 21.87 22.78 100.00 300 26,99 Step 4 [20-35ki] 3265 36.43 38.32 300.00 80 33.33 4500 6166 Step 5 [35-50k!] 9999 800.00 80 Tariff reflects value of water and supports sustainability (including adequate cash- backed depreciation to replace assets) 97 71 43.97 209 29 265.12 Step 6 [+501) 37 50 24 54 Commercial 19.63 23.55 21.59 [2] 4.3.2 How much can this household expect to pay under level 6 restrictions if they only use the recommended amount calculated in QUESTION 4.3.1? (remember 1 0001 = 1k!) Use this table on the ANSWER SHEET to calculate the amount: Rate ke Amount Consumption 0-6 kl 6-10, 5k 10,5-20 kl 20-35 kt 35-50 k 50 kt +. TOTAL (6) 4.3.3 A household of 7 occupants in Pretoria, sent the following water-meter readings to their landlord: 31 March: 8557k 30 April: 8580 kt (5) What could they have expected to pay if they were under a Western Cape Municipality? 4.3.4 Instead of the amount in QUESTION 4.3.3 the Pretoria household's water bill was R349,80 for April 2018. Comment critically on what you think about this disparity and reflect on the meaning of the statement on Annexure C: "Tariff reflects value of water and supports sustainability". (3)