More tariff increases for Ekurhuleni residents
The rising unemployment rate, rising fuel and energy costs and consumer inflation continue to exert pressure on the revenue generation and collection levels of the municipality.
MMC for Finance Doctor Xhakaza presented an annual budget of R48.9-billion for 2019/20 financial year under the theme Building a Local Economy that Grows in the Hands of the People recently in Germiston.
During his speech at the Germiston Council Chambers, he explained the rising unemployment rate, rising fuel and energy costs and consumer inflation continue to exert pressure on the revenue generation and collection levels of the municipality.
Xhakaza says the tough economical time calls for innovative ways of increasing the revenue base and policy amendments responsive to the plight of indigent households.
“The property rates will increase with 7.5 per cent which is consistent with the consumer price index (CPI) of 5.2 per cent plus 2.3 per cent for real growth.
“In 2018/19 Eskom was granted a 7.32 per cent tariff increase, we passed between 5.32 per cent and 8.5 per cent to consumers, depending on consumption.
“While in March this year, the National Energy Regulator of South Africa (Nersa) announced an increase of 15.63 per cent; however, we will only have an increase of between 13.07 per cent and 13.87 per cent depending on the usage.”
The MMC says the City is proposing a 15 per cent water tariff increase, which is equal to that pronounced by Rand Water.
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“Sanitation tariffs will increase by 11 per cent informed by the cost of sewer purification processes undertaken by Erwat.
“The refuse removal tariff will increase by 7.5 per cent for all users.”
Xhakaza says a five year break from cemetery and crematoria tariff increases will not be the case in this financial year due to the need to maintain the cemeteries.
The City is proposing a nominal tariff increase of 5.2 per cent for residents and 6.5 per cent for non-residents.
Residents will be happy to know there will be no increase on library and information services, library auditorium and use of arts, culture and heritage facilities.
Xhakaza says the City will continue to provide services at tariffs that are cost-reflective, taking into account the affordability levels for our people.
The City will shoulder the cost of R4-b for the social package for indigent residents – an increase of R300-million compared to the previous financial year.
“Those in need will receive a complete indigent relief package which includes a 100 per cent rebate on assessment rates, free refuse removal, first 100kWh of electricity per month free, first 9kl of water and sewer per month free and special rates on emergency services, such as ambulance,” explains Xhakaza.
The 2019/20 budget speech was furnished with R847-m over the Medium Term Revenue and Expenditure Framework (MTREF), with R296-m for the 2019/20 financial year for economic development.
Xhakaza says they have set aside R1.8-b in the MTREF and R640-m in the new financial year.
“This investment will go to completing and upgrading taxi ranks, roll-out of integrated public transport system and non-motorised transport infrastructure.
“To ensure residents are exposed to better public transport facilities, we have set aside R600-m in the MTREF and R189-m in the new financial year just for the upkeep and maintenance.”
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A further R101-m has been set aside for the maintenance of hostels and rental stock.
For the Energy Department the City has set R2.29-b aside for the MTREF and R706-m in the new financial year to cover the electrification of informal settlements, R732m for the MTREF and R202m for the next financial year
“For the lighting programme of townships, such as Thokoza, Tsakane, Tembisa, Etwatwa and Katlehong, among others, R161-m was set aside for the MTREF and R46.5m for the 2019/20 financial year.
“Water and sanitation received R3-b on the MTREF and R894-m for the 2019/20 financial year.
“We are going to continue to reduce the non-revenue water in this regard and spend R200-m in the refurbishment and installation of meters in non-metered stands.
“A further R1.3-b for the MTREF will go to the fight against water leaks and sewer blockages.
“A sum of R535-m of this amount is allocated for the 2019/20 financial year,” he explains.
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