Durban ratepayers have slammed the slightly reduced tariff hikes which were approved by eThekwini Municipality’s council, saying the changes made were insufficient and will not ease the burden faced by residents.
The ratepayers said despite the decreases, the tariff hikes scheduled to come into effect in two months’ time, remained unaffordable and will push the struggling ratepayers under water.
One ratepayer group reiterated its stance that it was seeking legal advice on the matter while another said the residents were already battling to pay their current bills and the situation would worsen with the new increases.
Some opposition parties in the council have also found the budget inappropriate and have refused to support it.
The eThekwini Council on Friday passed the budget for the new financial year, detailing the tariff increases that will be implemented. The new year starts in July.
Durban mayor Mxolisi Kaunda revealed that the proposed tariff hikes had been revised downward after consultation with ratepayers, business and other stakeholders.
“We have considered your (public) input, and this is reflected in the tariff adjustments that have been affected.
Therefore, we can proudly say that this is the people’s budget because we have listened to you and made necessary adjustments.
“We wish to reiterate that the ANC-led government listens to communities when they raise their concerns.
In response to your complaints that the proposed tariff increases were too high,” said Kaunda.
The amended tariffs passed by the full council include:
- Electricity tariff increase was reduced from the proposed 14% to 12.72%.
- The property rates tariff increase was reduced from the proposed 7.9% to 6.5%;
- The water tariff increase was reduced from the proposed 14.9% to 12.9%.
- The sanitation tariff increase was reduced from the proposed 12.9% to 10.9%.
- The refuse tariff increase was reduced from the proposed 8% to 7% for domestic and reduced from 9% to 8% for business.
Besides the tariff changes, Kaunda detailed other changes he said were for the benefit of ratepayers.
“There is an increase in the property value threshold to R 350 000 from R 250 000 for the water, sanitation and refuse removal free basic services.
“An increase in the total household income that qualifies for the indigent rebate. This has been increased from R4 220 to R7 000 per month. We have also increased the senior citizens’ annual rebate from R5 290 to R5 770 per annum. This is an increase of R480 per annum.”
However, ratepayers said they are disappointed with the budget. Chairperson of the eThekwini Ratepayers’ Protest Movement (ERPM), Asad Gaffar, said, “Many people will lose their jobs and homes because it is unaffordable. We are taking legal advice.”
Ish Prahladh, president of the eThekwini Ratepayers and Residents’ Association (Erra), said the association was not very happy with the percentage drop.
He said municipality needed to find other ways to subsidise the double digit increases. Prahladh said residents are worried about how they will be able to afford paying. “Residents are having to borrow money to keep up with the current expenses, they are signing Acknowledgement of Debt in municipal offices.
“Can you imagine (what it will be like after the increase comes into effect) this is going to have a real negative impact,” he said.
DA councillor Thabani Mthethwa said the budget did not represent the will of the people.
“It serves narrow personal interests and not those of the people. Once again the residents of this city have been rewarded with more financial burden for services which are often non-existent.”
ActionSA councillor Zwakele Mncwango said despite the slight decreases, the amended hikes still exceeded the Consumer Price Index (CPI) increase of 5.3%. “What brought us dismay is mayor Kaunda labelling the tariff hikes as the ‘people’s budget’, despite the fact that these increases will burden the residents of eThekwini,” said Mncwango.
The Mercury