Durban - eThekwini Municipality will not impose any increases on the residential property rates, however, residents will have to dig deeper into their pockets to keep their lights on and their taps running.
This was announced by Mayor Mxolisi Kaunda when he tabled the city’s R55.5 billion annual budget.
Announcing the new tariff increases which will come into effect on July 1, Kaunda said the proposed increases were the lowest in years as the municipality sincerely appreciates the plight of residents.
The water tariff increases for residential is 5.9% and 9% for business. “This is to secure the water supply of the city and ensure that the infrastructure is maintained to reduce water losses,” Kaunda explained.
The electricity tariff increase is 7.47%. He said this was against Eskom’s increase of 9.61%. The sewerage tariff increases for residential is 5.9% and 9% for business.
The refuse tariff increase is 4.5% for residential customers and 7.9% for businesses. Kaunda confirmed that there was no proposed increase for residential property rates.
Instead, he said, the city was happy to announce that the rate randage on residential has been decreased by 10% due to the implementation of the new valuation roll “as a caring and responsive city, we want to assure the residents and businesses of eThekwini that we have worked very hard to keep the tariffs and rates increases as low as possible”.
Municipalities are currently facing a difficult fiscal environment. These tariff increases represent an appropriate balance between the interest of poor households and other customers while ensuring the financial sustainability of the municipality.
“We have extended the deadlines for objections to the new property valuations and applications for rate rebates.
“We have also implemented several initiatives to help residents and businesses survive and recover through the Covid-19 pandemic, civil unrest and the floods,” he said.
On the major issues currently facing the city, Kaunda announced that the municipality has set aside R1 billion to fix the ageing water infrastructure that was worsened by the floods.
“In the next financial year, the city has set aside over R1 billion for water infrastructure repairs and replacement. However, this figure is likely to increase due to the reprioritisation process following the disaster.
“Our teams worked day and night to restore water supply in all areas that were affected by the floods. We have also improved water supply from 30% to 80% in the Inner West Region and from 45% to 70% in the Outer West Region.
“Significant progress has also been made in the South Region where our sterling efforts have improved supply from 15% to 85%. Similarly, in the Central Region supply has improved from 45% to 72%.
“Because of the severity of the challenge in the Northern Region, we have seen a slight improvement from 40% to 60% which is largely due to our interventions in oThongathi. We appeal for patience, and we understand the frustration as some repairs will take some time to complete.
“For example, our water treatment plant in oThongathi will take approximately six months to repair at an estimated cost of R30m,” said Kaunda.
As July will mark the first anniversary of the looting event which cost the city’s economy billions and over 30 lives, Kaunda said preparations were at an advanced stage to host the Social Cohesion Summit next month.
“It is a fact that the killings we have seen in Phoenix, the attacks that were directed at African nationals were antithetical to the provisions of the Freedom Charter.
“As eThekwini Municipality, we have a huge responsibility resting on our shoulders to ensure that all our residents irrespective of their race, gender and creeds can coexist. We are coming from a horrible past that polarised our society to advance an evil agenda of the apartheid regime,” Kaunda added.
The budget was endorsed by the council.
SUNDAY TRIBUNE