Municipalities which struggle to calculate their tariff’s accurately face resident dissatisfaction and even unrest if they charge too high, and insufficient revenue to provide essential services if they charge too low. Mubesko Africa has developed a tool to help them to determine cost-reflective tariffs.
The Mubesko Tariff Setting Tool is based on the National Treasury’s principles, calculating baseline tariffs based on the actual cost of rendering services.
The Tariff Setting Tool is also essential for helping a municipalities executive team and financial managers to measure the impact of strategic decisions.
Particularly useful is the comprehensive tariff modelling report where current deficiencies and shortcomings are identified, followed by a recommended tariff structure.
When municipalities do not generate enough income because of not charging sufficiently, they typically resort to cutting costs on essential items such as repairs, maintenance and asset rehabilitation. Predictably, assets decline, and service delivery suffers.
Inaccurate tariff setting has far-reaching consequences for a municipality and therefore the communities that they serve. Mubesko’s Tariff Setting Tool can make a marked difference to many of South Africa’s municipalities and make a difference to the lives of their residents.
Nico de Kock
MD Mubesko Africa
nico@mubesko.co.za
mubesko.co.za
Mubesko Africa is a consulting practice offering financial accounting and management expertise, asset accounting and forensic services to the public and private sectors. Mubesko is a valued partner to several of South Africa’s top performing municipalities.