Durban ratepayers face rates increase
Durban ratepayers should brace themselves for above-inflation increases in their monthly bills. In the draft budget for 2011/12, municipal manager Michael Sutcliffe announced increases of 6.5 percent for rates, sewerage and refuse removal, 9.5 percent for residential water, 12.5 percent for business water and 22 percent for electricity.
This means that a family living in a house valued at R750 000, with controlled water and electricity usage, will have their total bill increased from the current R1 500 a month to about R1 700 a month from June. The total for a R1m property with slightly high water and electricity use will increase by about R250 to R2 310 a month.
A pensioner in a property valued at R500 000 with low water and electricity consumption will have their bill increased from R440 to just less than R480.
Municipal treasurer Krish Kumar told the Tribune this week he was happy with the increases, which were kept as close to the inflation rate as possible.
He said nothing could have been done about the electricity tariff, which is linked to the increase approved forx Eskom by the National Energy Regulator last year.
Kumar said the 22 percent was provisional and even though it was lower than the Eskom tariff increase, the council was still going to try to reduce it further before the final budget is passed.
"Considering the development challenges we have and the infrastructure and services backlogs we face, I think we have done well with these increases. We could always do more, but we have to look at affordability and what it would mean for ratepayers.
"What I am really happy with is that, unlike the other metros, we are not cutting back on capital spending. We understand the backlogs and challenges we have, and we are pushing a development agenda," he said.
He added the fact that the municipality had the highest unemployment rate in the country was also a big factor.
Kumar said that various city departments were looking at ways to become more efficient to get "more bang for their bucks". He particularly praised water and sanitation boss Neil Macleod for the "innovative" things he was doing that were starting to show big financial benefits.
Opposition parties, however, believe more should have been done.
DA economic development committee member Rick Crouch said: "We think that any increase right now is too high because of the extra financial burden placed on people because of the economic downturn. We don't think these increases are reasonable because they are higher than the cost of living index, which is between 3 and 6 percent. Most of the increases are between 6 and 9 percent in eThekwini's case.
"We know we are going to have to deal with some increase, but we will be working hard to try and get the increase down to as low as we can."
Minority Front caucus leader Patrick Pillay agreed.
"We think the increases are very high, especially when it comes to electricity. Even though this is because of what was given to Eskom, the city should have tried to do something and absorb it in some way.
"Grantees, pensioners and the poor are really fighting for survival - and the sad reality is that their incomes can't pay for all these increases. They are really suffering. This is the year when ratepayers should have been given a tariff increase holiday and should not have been charged because they have been bombarded with the climbing cost of living. We do not support these increases at all," Pillay said.
matthew.savides-AT-inl.co-DOT-za could remove a massive rates burden from ratepayers. MF caucus leader Patrick Pillay said: "We don't think that much is being done to ensure unfunded mandates and high government debt are reduced."
DA councillor Rick Crouch has proposed: "Cut them off".
Municipal Treasurer Krish Kumar said there were discussions with the provincial and national health departments over the unfunded mandates, as well as good developments in getting money from the national government, instead of having to go through provincial departments when dealing with housing.
Sunday Tribune
Posted at 07:29AM Feb 28, 2011 by Editor in Cities and Towns |