RATEPAYERS are set to dig deeper in their pockets to meet the tariff increases set out in the Municipality’s final 2019/20 budget.
Mayor Zandile Gumede presented the City’s R50.6 billion consolidated budget at a sitting of full council on 29 May at City Hall. In her address, she said the budget was a direct response to the call from communities who participated in the two-month long draft budget consultation process. “They came out in their numbers during our budget hearings. Our people are not asking for much, they want simple things like speed humps, fixing of potholes, streetlights, passages and cleaning of their areas. We have spoken and strategised for far too long, now it’s time for action,” said Gumede.
She said the Municipality’s Investment Promotion Strategy and Implementation Plan, an integrated approach that will allow for the majority of citizens to access public transport, goods and services in a cost-effective and efficient manner and to also to respond to growing the City’s rates base, will enable the City to meet the local socio-economic obligations.
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The Capital expenditure is budgeted to rise to R7.9 billion in 2019/20 and is allocated to meeting infrastructure and household services, needs and backlogs over the medium term. About R 3.7 billion of this is directed to new housing developments and interim servicing of informal settlements.
In response to climate change and in light of the recent devastating floods, a provision of R10m has been made in the operating budget for additional staff and general expenses for the City’s Disaster Management and Emergency Control Unit, and a further provision has been made in the operating budget for R9.3m for additional fire and emergency staff.
Provision has been made for residents who are unable to pay for basic services, and the City’s social package of R3.9 billion for 2019/20 is partially funded by the Municipality’s equitable share allocation of R 3.2 billion from national government. The basic social package aims to help more vulnerable residents by supporting them with basic services and also by providing them with rates relief in the form of rebates or discounts.
Tariff increases
6.9 per cent rates increase
13.07 per cent increase in electricity tariffs. This is due to the 15.69 per cent increase expected from Eskom. However, should NERSA further review the Eskom increase, the City will also review the tariffs.
15 per cent increase in water for domestic use, 15.5 per cent increase for business usage. This is based on the Umgeni Water Board increase of 9.6 per cent and takes into account the additional capital expenditure on water in terms of the rollout of the Western Aqueduct, huge urbanisation increase trends, provision of ablution facilities, as well as free basic water.
9.9 per cent increse in the sewer tariff.
9.9 per cent increase in the refuse tariff.
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