It is time for residents of Ekurhuleni to dig deep into their pockets and pay more in terms of tariffs.
In the metro budget, delivered on May 30 at the council chambers in Germiston, the following tariff increases were approved:
* A 9.82 per cent increase for water for both residents and businesses.
* A 15 per cent increase was approved for solid waste. To assist the poor, a rebate of 15 per cent will be granted to all residential households with a property value of less than R300 000,and a stand size of less than 300sq/m.
* A 7.6 per cent increase for sanitation for both residents and business.
* For electricity, a decrease of 7.69 per cent and 8.5 per cent increase, according to
Ekurhuleni mayoral committee for finance Moses Mkwakwa, however, his explanation seems confusing on this matter.
The increases are compliant to the guidelines as set out by Nersa. The increases for bulk purchases will be 7.3 per cent.
* In terms of cemetery fees – an increase of 0 per cent to 5.5 per cent is tabled.
Good news, however, for residents is that there is no tariff increases recommended for the financial year when it when it comes to assessment rates.
Makwakwa, who detailed the city’s financial commitments in his budget speech, said even though there is no tariff increase, there is a new valuation roll that is being introduced as per the Municipal Property Rates Act 6 of 2004.
This valuation roll will result in an increase to most property owners, while the residential rebate of R150 000 will remain unchanged.
The new valuation roll will come into effect from July 1.
“In order to continue providing sustainable services, the municipality should be in a position to cover costs associated with the provision of services.
“Therefore, some of our operational cost drivers may necessitate an increase above the urban consumer price index,” says Mkwakwa.
“It is on this basis that we review our tariffs in order to ensure that our revenue base is able to fund sustainable service provision.
“It is important to mention the fact that residents are the ultimate beneficiaries of these proposed tariff increases. Our ratepayers must derive value for money out of these proposed increases, therefore business must be ‘unusual’ and that departments must focus on delivering quality services.”
Such delivering of services include sustaining clean water; supplying electricity with minimal disruption; collecting waste per schedule; and fixing potholes properly.
The total budgeted operating revenue for the 2013/14 financial period is R26.5-bn, representing a 11 per cent growth from the 2012/13 adjusted budget.
This includes fixed costs such as human resources, depreciation, bulk purchases, provision for bad debts, interest expenses and contracted services.
When it comes to capital expenditure, the metro’s 2013/14 allocation is R2.9-bn, which is an increase of approximately 16.6 per cent compared to 2012/13 adjusted budget of R2.6-bn.
“This is a result of increase in grant funding and unacceptable delays in the implementation of some 2012/13 projects.
“For the period of 2014/15 and 2015/16 we are projecting capital budgets of R3.1-bn and R3.4-bn respectively.
“The capital budget was guided by the principles of Capital Investment Framework, namely 30 per cent for urban restructuring, 39 per cent for upgrade and renewal, 30 per cent for economic development and one per cent for local intervention.”
Essentially, Makwakwa said that the tabled budget is mainly focused on the sustenance and expansion of basic services; the intensification of job creation activities as one of the building blocks of a liveable city, and economic and infrastructure development as well as maintenance.
The budget has been greatly influenced by the Growth and Development Strategy (GDS), which has been adopted by the Ekurhuleni metro, which informs them of what needs to be done for the city to reach social cohesiveness, said Makwakwa.
