Pretoria -
If you own a property in Pretoria worth R1 million, your municipal bill for rates and services will increase by 10 percent: from an average of R3 923.95 to R4 316.72.
But if you’re poor, you will benefit from the city’s budget, with certain exemptions and lower service fees for indigent households and discounts for others.
For property owners in general, the first R75 000 value of residential properties is exempted from rates.
And, in explaining the R29 billion budget delivered on Friday, Tshwane executive mayor Kgosientso Ramokgopa said the city remained cognisant of the financial positions of its residents.
Service tariffs for the next financial year had been set within the dual context of the awareness of this fact, and the need to collectively invest in the future the city wished to create, he said.
Water and electricity tariffs were influenced by expected increases from bulk suppliers, Rand Water (projected at 13.5 percent) and Eskom (14.2 percent).
The increases in service charges across the city are 12 percent for electricity, 13.5 percent for water, 9 percent for sanitation, 15 percent for refuse removal – which goes up from R186.86 to R214.88 – and 8 percent for property rates.
The average increases are less than those implemented in the current financial year.
On a property valued at R300 000, for example, where 350 kilowatt hours of electricity was used and 20 kilolitres of water in a month, the current average municipal bill would be R1 120.77.
In the next financial year, within the same parameters, it would be R1 220.12.
On a property valued at R700 000, where homeowners used 850 kilowatt hours of electricity and and 30 kilolitres of water a month, the bill would go up from R2 345.94 now to R2 570.30 from July.
Properties with a value of R1 million consuming 1 500 kilowatt hours of electricity and 50 kilolitres of water a month pay R3 923.95 now.
Their new bill will be R4 316.72 for the same services.
Ramokgopa said the city was committed to supporting indigent households.
“In the 2015/16 financial year, R511 has been committed to each indigent household per month for services, which equates to a total subsidy of R737m.”
Residents registered as indigent are exempt from paying property rates and for refuse removal.
They are also entitled to a grant of 100 kilowatts of electricity and 12 kilolitres of water a month.
In addition, pensioners and the physically disabled qualify for rebates.
Regarding the terminated smart prepaid meters contract with PEU Capital Partners, Ramokgopa said a report would be tabled in the council containing the contract termination terms.
He said there would be no disruption of services to the 12 900 low and high power users already on smart meters installed by the previous service provider.
“As part of the modernisation of our service delivery offering, we would like to reiterate the fact that we remain convinced by the merits of the project. “As such, we will commence with the process to continue with the roll-out of the smart meters,” Ramokgopa added.
New tariffs
* Property value: R300 000
Electricity consumption: 350 kilowatt hours a month
Water usage 20 kilolitres a month
Municipal bill: R1 120.77
New bill: R1 220.12
Increase: 8.9 percent
* Property value: R700 000
Electricity consumption: 850 kilowatt hours
Water usage: 30 kilolitres a month
Municipal bill: R2 345.94
New bill: R2 570.30
Increase 9.6 percent
* Property value: R1 million
Electricity consumption: 1 500 kilowatt hours
Water usage: 50 kilolitres
Municipal bill: R3 923.95
New bill: R4 316.72
Increase: 10 percent
Pretoria News