The new tariffs for the 2019/2020 financial year came into effect on July 1 and will reflect on residents’ accounts at the end of the month.
The increases were announced during the City of Ekurhuleni’s budget speech on May 23 delivered by the Mayoral Committee for Finance and Economic Development, Clr Doctor Xhakaza, at the Germiston Council Chamber.
The budget for the 2019/20 financial year amounts to R48.9-billion, of which R7.4-billion is for capital projects and R41.5-billion for operational costs.
The speech, which was anchored on the City’s pro-poor agenda, fiscal prudence and additional revenue sources, highlighted containment of tariff increases, consolidation of social packages and investment in capital infrastructure for economic stimulation.
The budget was delivered on the back of achievement of 94% revenue collection rate from the annual billing.
The following tariff increases were approved:
Assessment rates:
7.5%, consistent with the Consumer Price Index (CPI) of 5.2% plus 2.3% for real growth.
Electricity:
Will be increased by between 13.07% and 13.87% depending on the usage, whereas the National Electricity Regulator of South Africa (Nersa) has granted Eskom an increase of 15.63% in March. This means the City will absorb, and not pass on to consumers, the difference in percentage points between the two increases.
Water:
15%, which is equal to the increase announced by Rand Water.
#CoEBudget2019 @mzwandileMasina @nkosindiphile_x @Radio702 @EkurhuleniL pic.twitter.com/Q5ereAFCfI
— CITY OF EKURHULENI (@City_Ekurhuleni) May 23, 2019
Sanitation:
11%, which is informed by the cost of sewer purification processes undertaken by the East Rand Water Treatment Company (ERWAT).
Refuse removal:
7.5% for all users due to the main cost drivers of the service.
Cemeteries/crematoria:
There had been no tariff increases for cemeteries and crematoria over the past five years.
Due to the need to maintain the cemeteries, a nominal tariff increase of 5.2% for residents and 6.5% for non-residents was effected.
#CoEBudget2019 @mzwandileMasina @nkosindiphile_x @Radio702 @EkurhuleniL pic.twitter.com/XJ99ySdLE3
— CITY OF EKURHULENI (@City_Ekurhuleni) May 23, 2019
#CoEBudget2019 @mzwandileMasina @nkosindiphile_x @Radio702 @EkurhuleniL pic.twitter.com/w6QkO70TtW
— CITY OF EKURHULENI (@City_Ekurhuleni) May 23, 2019
