eThekwini’s service tariffs and rates soar

HOMEOWNERS will have to dig deep into their pockets, should the draft budget on proposed tariff increases be passed by eThekwini Municipality on 29 May.

Water, electricity, charges for refuse removal and sanitation and even the rates you pay on your home are expected to increase this year, adding further financial stress on consumers who are trying to cope with the recent fuel and interest rates hikes.

The draft budget proposes tariff increases of 7.39 per cent for electricity, 9.9 per cent for domestic water consumption, 12.9 per cent for water consumption by businesses, 7.9 per cent for refuse removal and sanitation and 6.6 per cent for rates.

Mayor James Nxumalo said the R35.2 million draft budget for the 2014/2015 financial year was unanimously adopted for public consultation at a full council sitting at the Rotary Stadium in KwaMashu on 19 March. He is urging residents to participate in the public consultation hearings to be held next month. He said its at these consultations that they can discover what the public needs.

However, ward 18 councillor, Tim Brauteseth said he was dismayed at the attitude the municipality is displaying towards residents and businesses alike by hiking water and electricity tariffs.

“These hikes are almost double the current consumer price index and over the next three years will constitute an increase of more than 30 per cent in water costs alone. The electricity increase will total more than 20 per cent in the next three years. The only justification given in the budget is that Eskom and Umgeni Water have increased their rates. No further explanation and proof of these increases is given,” said Brauteseth.

He added that this state of affairs is extremely prejudicial to residents and shows no willingness by the municipality to ameliorate the impact of rising costs. Businesses are hardest hit and will no doubt pass these increases onto their customers, thereby increasing the impact.

Regarding public participation, Brauteseth said he is still awaiting a list of dates and venues to be advertised for public consultation meetings.

Rates

Lilian Develing, chairman of the Confederation of the Mistbelt Ratepayers’ and Residents Associations (Conomirra) said the rates increases seem to be based in a formula decided on by council and the consumer price index is not being followed at all. Every homeowner will get a rates rebate of R185 000 on their property’s valuation, regardless of the value.

She added that the agricultural rates are creeping in. “The Katz Commission, years ago, decided that any increases above three per cent was not acceptable in terms of profitability for the industry. A court case set the increase at a set figure but the Council has been increasing this year on year. They will have reached over 3 cents in the Rand by 2016/17,” said Develing.

The automatic rebate which was provided for in the Rates Act (R50 000) and increased by the city, now has to be applied for on an annual basis. Develing said while she can understand why this was done as many pensioners die in the preceding year with the City having no way of knowing this, the process will be fraught with bad management.

“I applied for my pension on 4 March but have still not had the promised SMS confirmation. This in spite of a query and a promise that I would be ‘advised in the next batch this week’, ” said Develing.

The rebate of vacant land is to be removed to encourage development. Those who own vacant land will lose their automatic R30 000 rebate unless the property is to be used for low-cost housing.

“The Outer West is still affected by the 10 year Moratorium because of lack of infrastructure. If Council wants to buy up land to put up high density housing, multiple floor flats, the transport and road system can not sustain this kind of development. The M13 is already at capacity and with the 200 ha development of Tongaat, will not cope let alone the ‘land owners’ being encouraged to sell to developers. This will also mean that very little green space or agricultural land will be left for the benefit of the residents of Durban,” said Develing.

Ward 9 councillor, Sithembiso Mchunu, did not respond to or comment on questions emailed to her last week.

eThekwini Municipality’s communications officer, Thabo Mofokeng, failed to confirm when the public consultation meetings will be held.