The decision by Ugu District Municipality to increase water tariffs by 18 percent in the midst of ongoing water supply problems has been called into question.
The IFP, DA and consumers have asked how the approved budget will provide solutions to ageing infrastructure, pipeline repairs and ongoing water outages.
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However, Ugu believes the decision will have a positive effect on the municipality’s financial position for the 2019/20 financial year, although it said financial prudence would still be required.
The budget was passed at last week’s council meeting, at which the DA expressed its ‘total rejection’ of the proposed increase, despite the hike being dropped from 22 percent to 18 percent.
The DA said it was in favour of an annual increase phased in at nine percent per year over the next three years.
This motion was defeated by 19 votes to five, with the IFP abstaining.
The IFP said it was impractical for Ugu to expect consumers to pay for services which were not being rendered and suggested that the plans put in place to bring about change be monitored.
Municipal manager DD Naidoo said Ugu’s tariffs compared very favourably with other municipalities, and in fact charged ‘much less’ than some.
He added that the municipality had no other option but to implement the increase in order to ensure that its revenue base remained sound.
He argued that if council agreed to lower the rate proposed, the shortfall caused by this would still need to be funded.
“The DA should indicate where the budget should be cut to fund this shortfall,” he said.
When tabling the budget, acting mayor Phumlile Mthiyane said the budget took into consideration the ongoing service delivery imperatives and responded to the developmental challenges confronting Ugu.
She explained that the tariff increases were driven by input costs from the Eskom increase of 9.41 percent and Umgeni Water’s increase of above 9.6 percent for bulk water supply.
However, she urged communities not to despair as plans were in place to restore supply to affected areas, although, she added, it would not be possible to sort out these problems ‘in one fell swoop’.
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These plans included pipeline replacements and pipeline refurbishment of critical process units (mechanical, electrical and instrumental).
She added that the next fiscal year would see the upgrade and construction of bulk supply plants in the Kwaxolo area and the Umthamvuna system.
But are these plans enough, asked Munster resident Azelle Breytenbach (51), who described the current water situation as ‘frustrating’.
Ms Breytenbach said often plans on paper were great, but yielded less positive results practically.
“The problem here is that these issues didn’t materialise overnight. For many years we have been subject to poor water services and there seems to be no end in sight considering the current budgets and salaries that exceed the municipality’s capacity.”
However Mrs Mthiyane said stringent measures needed to be actioned to ensure the financial sustainability of Ugu.
She mentioned that employee-related costs in particular required urgent attention as their continued increase was a real threat to Ugu’s financial viability.
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