eThekwini tariff hikes widely condemned
Ward 97 councillor and member of the mayoral executive committee, André Beetge, said that the new budget was not sustainable because the City does not collect rates across the spectrum of the people who consume its services and the municipality should not increase tariffs when they cannot deliver reliable services.
THE eThekwini Municipality tariff increases in the 2023/2024 draft budget have been responded to from all corners with almost everyone condemning them.
Also read: eThekwini proposes to hike rates and tariffs
Among the proposed hikes in the R66 billion draft budget are a 14.9% increase for residential water, 12.9% for residential electricity, 11.9% for sanitation and 8% for refuse collection. eThekwini mayor Mxolisi Kaunda has admitted that the proposed increases are above inflation but were inevitable because of the current economic climate. The R66 billion draft budget consists of a R57.9 billion operational budget and an R8.1 billion capital budget for long-term projects.
In the full eThekwini council meeting held on March 26, the Ward 97 councillor and member of the mayoral executive committee, André Beetge, told the house that the new budget was not sustainable. He said this is because the City does not collect rates across the spectrum of the people who consume its services.
“We cannot carry on like this. The City’s debtors book stands at R29.5 billion, and R6.2 billion of that was incurred in one year from February 2022 to February 2023. The debt relief programmes are a sign that people cannot afford these increases that we are passing on to them. We have to broaden our rates base. We need to get the money from across the spectrum of people of this municipality,” said Beetge.
He has previously noted that only 10% of the city’s residents pay rates. The eThekwini Ratepayers’ and Residents’ Association (ERRA) has also voiced its disapproval of the proposed increases. Keyuren Maharaj of the ERRA said it is unacceptable for residents to pay more while having to put up with poor service from eThekwini. He asked ratepayers and residents to reject the increases.
“We believe it is unfair for the municipality to increase tariffs when they cannot deliver reliable services. We call on all residents of eThekwini Municipality to stand together against this proposed tariff increase until we see significant improvements in service delivery,” said Maharaj.
eThekwini spokesperson Gugu Sisilana said the draft budget is open for public consultation before the council can approve it.
“The budget for the 2024/25 financial year has been released for consultation which will allow ratepayers, businesses and stakeholders to make submissions,” she said.
Ratepayers and other stakeholders can submit their comments by email or attend public consultations before April 19.
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