Revenue Enhancement Case Study Examples

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1Map Revenue Enhancement Case Study Many municipalities across South Africa are facing challenges that are characteristic in the Local Government Sector (municipalities) that the level of municipal generated revenue is not always at the acceptable level where the municipality would accept it to be cost effective. As a result, municipalities are embarking on implementing mindful revenue enhancement strategies or plans. This revenue enhancement strategy is a combination of collecting supplementary profit streams and also increasing revenue within existing revenue streams. It includes revenue categories not typically expected to develop significant revenue in rand value terms and equally revenue categories where significant revenue is expected,…show more content…
Every service gets delivered to a land parcel, for example the water network system places a water line to a house on a piece of land, this is the same for all municipal services they get delivered to a land parcel. The invoices for services rendered and rates and taxes are then delivered to the owner and or user of the land with the goal of recovering the costs of delivering the said service. If a municipality does not have an accurate cadastral data set, the client does not know what land they administer, where it is, who it belongs to, or even where the services are being delivered to. This information gap cause a shortfall in revenue as billing is incomplete when compared to the land base. Thus a full land audit is necessary to get the full picture of what the situation of the ground looks…show more content…
This is necessary to grow and protect the municipality’s property rates base. Correct categorization of properties; this impacts usage and property rates tariffs applied to the properties. Property usage must be correctly recorded so that the relevant property rates tariff is applied to the property; changes to property usage must also be linked to the revenue function so that the billing system is updated. Water and electricity meter numbers must be recorded correctly and linked to the corresponding property on the billing system. Water and electricity meters must be adequately maintained to minimize losses due to leakages or incorrectly measured consumption. Water and electricity meters must be audited regularity so that the correct consumption information is recorded on the billing system. Refuse and sanitation service charges must be included in the billing records; these services are often neglected as a source of revenue. Municipal functions must be adequately staffed with competently skilled individuals who understand the job requirements and how to deliver on it. To achieve and sustain a good revenue rate. All these aspects can very easily be managed and maintained if subjected to a proper

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