The iLembe District Municipality has proposed an average rates increase of 9.5 % for the next financial year.
The proposed increases were revealed when the municipality presented its 2023/2024 draft budget to council last month.
Increases are inclusive of potable water and sewer charges, the two main services provided by the municipality.
All of iLembe’s constituent municipalities, KwaDukuza, Mandeni, Ndwedwe and Maphumulo, will be affected, except for the area contained in the Siza Water concession agreement.
The 9.5 % bucks a downward trend from the municipality in recent years, where the percentage increases have been 9.6%, 7% and 4% between 2020 and 2022.
It is largely a result of tariff increases, also of 9.5%, imposed by Umgeni Water, from where iLembe purchases much of its bulk water.
The figure is significantly higher than the rate of inflation, which reached 7% earlier this year, and the consumer price index of 5.6%.
“Based on the CPI, this is an added burden to the already struggling consumers who rely on grants or fixed income. Loadshedding is causing water outages on a regular basis and now residents have to contend with this increase,” said iLembe Democratic Alliance caucus leader, Krsna Sing.
“Tariff increases must be cost reflective and affordable. Being saddled with increases will further push consumers in a corner resulting in further debtors which are already an issue in the municipality.”
Photo: iLembe District Municipality.
iLembe’s proposed budget reflects expected water service charges of R296.9-million in 2022/23 (up from R271.1-million) and sewer charges of R69.6-million (up from R67.2-million).
These projections form part of the proposed revenue which totals R1.5-billion.
The municipality expects to outlay R1.4-billion in operational spend, with a further R437.1-million in capital expenditure.
In his report to council, iLembe mayor Thobani Shandu acknowledged that significant issues faced the municipality, but said strides were being made to efficiently deliver services.
“Twenty percent of the population do not have access to clean water and obtain water from rivers and streams. This poses a health risk with further implications regarding the provision of social services. Rural areas are affected by a lack of certain basic services and continued service delivery backlogs,” he said.
Shandu cited rapid growth as a reason for lagging services in portions of iLembe.
Capital projects are being implemented, including that of the uMshwathi pipeline – at tender phase – which will connect rural areas in Ndwedwe and Maphumulo.
“We also strive to improve revenue collection and diversification of income by trying to identify additional sources of revenue to place less reliance on grants,” said Shandu.
Objections to the draft can be submitted until the end of this month via email to salora.pillay@ilembe.gov.za.
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