eThekwini Municipality releases draft budget for public comment
The electricity tariff increase is proposed at 6.9 percent and an increase of 9.9 percent has been negotiated for water.
THE eThekwini Municipality’s consolidated R52.3 billion draft budget for the 2020/2021 financial year is available online for comment. The consolidated budget consists of the capital budget of approximately R6.9 billion and an operating budget of R45.4 billion in 2020/21.
In a statement, the municipality said the budget has been tabled at a time when the country faces an economic crisis as markets are brought to a standstill, globally.
“The city is fully aware of the ramifications of the national lockdown on income and have taken measures to assist residents during this crisis. The city, together with other metros are also in discussions with National Treasury to allow consumers to enter into payment arrangements after the lockdown has been uplifted. This is however dependent on the state of the economy and affordability at that time,” read the statement.
During the lockdown period, service delivery will not be interupted, there will be no water or electricity disconnections and no interest charged on arrears incurred.
“However, with only 60 days cash reserves on hand, the municipality is dependent on income from rates and services to ensure uninterrupted service delivery and thus appeals to those that can pay for services to continue to do so,” read the statement.
According to the municipality, the electricity tariff increase is proposed at 6.9 per cent (a 50 per cent reduction from the anticipated increase) and an increase of 9.9 per cent has been negotiated for water.
“An increase of 23 per cent was initially forecast to balance the municipal budget. However, following the review by the Budget Prioritisation Committee, negotiations with Umgeni Water Board to reduce their tariff increase to 6.9 per cent, a tariff increase of 9.9 per cent is being proposed. Compared to last five years’ increases of 15 per cent, this is a welcome relief to consumers,” said the municipality.
Residents are encouraged to comment until 8 May 2020 on the proposed budget via email: Constance.Mwelase@durban.gov.za or info@durban.gov.za. The deadline for the submission of rates rebate applications will be extended to 31 May 2020.
