![](https://images.caxton.co.za/wp-content/uploads/sites/30/2019/05/tariff-hike.jpg)
The City of Ekurhuleni has approved its draft budget and tariff increases for the 2020/21 calendar year.
In order to realise required funding and based on differential rating ratios in respect of individual categories of properties, it is proposed that assessment rates be increased by 7.5 per cent, which remains unchanged to the percentage increase of 2019/20.
Rand Water indicated a tariff increase of 15 per cent, which is also the same as the 2019/20 increase. This increase must still be approved at Cabinet level as it forms part of administered prices.
ERWAT proposes a tariff increase of 11 per cent on sanitation, which is also the same as last year. This is based on the increase in input costs such as fuel and chemicals and to address backlogs on sewer network maintenance.
As in the previous year, the refuse removal tariff increase is proposed to remain the same at 7.5 per cent for all users. This is largely based on the increase of the main cost drivers of the service such as fuel and lubricants and vehicle operating costs.
The 7.5 per cent increase does not take into consideration costs such as provision for doubtful debts and depreciation charges. Substantial tariff increases would be required to fully fund the service.
The electricity tariff increases are based on NERSA approval of Eskom application. At the moment the increase is 6.9 per cent for bulk purchases from Eskom and 6.6 per cent for sales to customers.
These figures are subject to NERSA’s final approval.
Sundry tariff increases were limited, in most instances, to be within the CPI rate of 4.5 per cent. Increases above the CPI are justified as they take into account the direct and indirect costs of providing the services.
The burial and cemetery tariff increase is proposed at 4.5 per cent for Ekurhuleni residents and 6.5 per cent for non-residents. This is due to the fact that the current tariffs are not cost reflective and a benchmarking exercise indicated that the City’s tariffs are less than those charged by other municipalities.
Similarly, council reviewed the municipal bus services tariff increases. This increases by an average of 3.85 per cent and 4.35 per cent. This is less than the CPI of 4.5 per cent.The full budget can be viewed on the City’s website, www.ekurhuleni.gov.za