Durban - While the eThekwini Municipality tabled slightly reduced tariff increases, ratepayers said the changes were insignificant as the tariffs are still unaffordable.
Mayor Mxolisi Kaunda tabled a restructured budget for the 2023-2024 period during a special council meeting yesterday.
Following public hearings, and unprecedented objections by ratepayers, the mayor said they had heard the “outcry” about the proposed tariff increases being unaffordable and had reduced some of them.
He also revealed that during the public engagements, residents had highlighted a string of service delivery failures.
After the draft budget was tabled earlier this year, there was an outcry from ratepayers who marched to the city and signed petitions objecting to the increases.
The DA said close to 16 000 residents had signed its petition objecting to the increases.
The final budget that was passed yesterday detailed changes in key tariffs.
The changes also mean the city budget is reduced by R500 million, from R66
billion to about R65.5bn.
The reductions in the key categories include:
- Electricity tariff increase reduced from 21.9% to 18.49%.
- Property rates tariff increase is reduced from 8.9% to 7.9%.
- Sanitation tariff increase is reduced from 11.9% to 10.9% for domestic, and from 12.9% to 11.9% for business.
- Refuse tariff increase is reduced from 8% to 6.9%.
The water tariff increase remained unchanged at the proposed 14.9% increase for residential customers and 15.9% for business. Kaunda said some of the key drivers of the water tariff increase included a 5.5% increase imposed by Umgeni Water, a 3% increase related to the construction of the Upper Umkhomazi Dam, repairs and maintenance contributed about 4.3% and security 1%.
Ratepayer organisations said the decreases were insufficient.
Janus Horn of the Manor Gardens Ratepayers’ Association said that while a reduction was welcomed, no increases above 6% were acceptable.
“A reduction is always welcome but unfortunately it is still not affordable to most people. How many people do you know who are getting double digit salary increases? Time to go back to the drawing board, unfortunately. They need to cut a lot more. I don’t think we can afford more than 6% increases,” he said.
Teddy Govender of the Chatsworth and Districts Civics Federation, which organised a march to City Hall last week over the tariff increases, said the decreases amounted to “crumbs being offered to appease ratepayers”.
“It highlights the failure of the municipal leadership to address the real challenges facing us,” said Govender.
Opposition parties in the council said the tariffs are still too high.
DA councillor Yogis Govender said the revised tariffs were in part due to the pressure campaign led by the party.
“The DA in eThekwini Municipality received nearly 16 000 submissions opposing the proposed tariff hikes. Although this victory is significant for residents, it is regrettable that water tariff increases will not be cut. These tariffs continue to be unnecessarily high, and businesses will endure a huge 15.9% hike, which is 2% greater than last year.“
IFP councillor Mdu Nkosi said the city is littered with service-delivery failures and the mayor had not detailed how these will be addressed.
“The IFP cannot support this budget unless officials change their behaviour.”
ADEC councillor Visvin Reddy said they voted against the budget because the proposed tariffs are still exorbitant and not reflective of the services received.
“This municipality is killing the goose that lays the golden egg. Almost all expenditure is going to areas that don’t contribute towards the rates base. The City is squeezing the only source of its income to the point of collapse.
“The tough economic climate does not support any tariff increase. Service delivery is at its worst. The mayor has not responded to these legitimate complaints raised during public hearings,” Reddy said.
EFF councillor Themba Mvubu said they welcomed the revised budget saying the City had taken into account the views solicited through the public participation process.
Democratic Liberal Congress (DLC) councillor Patrick Pillay said: “DLC does not support the high tariffs increases in this budget and called for zero tariff increase for rates, electricity and water that could be funded from the equitable share the City receives annually from the national Treasury.”