North Coast ratepayers are facing further rates increases with KwaDukuza municipality’s 2021/22 draft budget and Integrated Development Plan (IDP) tabled at a virtual council meeting on Tuesday morning.
Despite the woeful state of the economy, consumers will have to dig deeper into their pockets from July 1 if proposed water, electricity and refuse rates increases are approved.
Mayor Dolly Govender presented the draft budget which sees the municipality propose hikes of a maximum of 4% for refuse, 7% for water and sewage and 15% for electricity.
Siza Water has yet to announce its increases for the southern part of the region.
There is no increase in rates randage proposed, however property rates could increase after the general valuations roll went up by an average of 25%.
Total operating revenue is expected to grow by 9% from revenue from rates and municipal services. Electricity and refuse charges generate 53% of the municipality’s income.
The operational expenditure has also grown to R2 billion.
Some examples of operating costs include staff salaries, repairs and maintenance.
Employee related costs and council remuneration account for 25% of the budget or R510 million.
These are among the main budget proposals council will be taking to residents as it embarks on a public participation process in the next few weeks.
The final budget must be approved by council by the end of June. In the coming year, consumers will be hard hit by the increases in the cost of fuel and electricity.
Last month South Africa’s high court ruled that the troubled Eskom can recover R10 billion rand from consumers, enabling the state power utility to raise electricity tariffs by 16%.
It allows the tariff increase to be implemented from April 1.
Cllr Govender said the 2021 national budget review states that local government must enforce financial discipline on budget spending, ensure enhanced service delivery and communities receive value for money, provide decent and sustainable jobs, ensure economic growth and develop infrastructure.
Opposition DA caucus leader Madhun Sing said the current economic conditions were not favourable for any increases.
“Businesses are struggling with many having to close their doors while unemployment has risen to over 30%. Added to this is the valuation of property which will further impact the overall increases for consumers.”
Cllr Govender said while the municipality had applied a 90% collection rate they would validate the accuracy of the collection percentage applied.
“Given that numerous service delivery imperatives remains, a phased-in approach will be implemented to ensure a balance is achieved between service delivery and financial prudence.”
Ratepayers can still have their say on the draft budget before the new rates kick in when the municipal financial year starts on July 1.
