Johannesburg - Proposed council tariff increases facilitated by the City of Joburg highlights “a complete and utter disregard of the harsh reality faced by inner-city and greater Joburg residents during one of the gravest economic downturns in recent memory”.
Water, electricity, refuse and power tariffs increase from July 1 are resulting in total council charges over 13 years having been increased by 329%, while the average household income has only increased by 119% in that period.
This according to the Johannesburg Property Owners and Managers Association (JPOMA) representing the owners of a large number of buildings in the CBD which house families in self-contained and communal affordable housing, with total monthly incomes of R4 500 to R15 000.
This is only set to worsen by the unjustifiable and exorbitant increases in electricity, rates, refuse, water and sewer charges.
“We believe that the needs of vulnerable communities residing within high-density residential properties in the inner city and surrounding areas are being blatantly ignored and the proposed increases will severely negatively impact these residents … and act as significant anti-investment,” said JPOMA general manager Angela Rivers.
Even before the Covid-19 pandemic outbreak, the economy was in sharp decline, resulting in increased unemployment and high levels of poverty. This was particularly evident in the poor and vulnerable communities, which fall outside the city’s expanded social package.
Now, after the ravaging effects of the pandemic, at least another one million permanent jobs have been lost, with South Africa predicted to recover from this economic crisis only by 2024 at the earliest, she said.
This year, about 24% of tenants’ living expenses are made up of council charges and up to 40% of rental flowing to operating costs. As it stands, the proposed 2021/22 tariff increases are all significantly above the average inflation rate sitting at 3.88%.
Water and sewer charges are going up by an average of 6.7%, waste charges by 4.3% and electricity charges by up to four times more than inflation.
“Shockingly, these numbers don’t even tell the full story of these astronomical increases throughout the years. From 2008 to 2021, water charges have increased by 288%, sewer charges by 267% and electricity charges by 394%.
“While the tariffs have drastically increased, service delivery and basic maintenance have deteriorated across the city, due to inadequacies, inefficient processes and mismanagement of funds accrued by the municipality,” said Rivers.
These latest proposed increases will devastate the quality of life for those already living in disadvantaged conditions in terms of financial instability, the elderly, the disabled and people affected by comorbidities. This is evidenced in poor high-density communities, specifically in the Joburg CBD and immediate surrounds.
The tariff increases, she said, compounded the already-fragile economic state of the country “adds insult to injury to those already struggling within their means.” Not only do residents and tenants suffer, but investors and landlords are also feeling the burden of not being able to find viable tenants to take up leases. This goes on to affect investment in the city, ultimately, being a death knell in any possible economic recovery, she added.
“JPOMA is committed to tangible progress of Joburg as both an investment opportunity and a home for all its residents. We believe progress comes with great responsibility; this responsibility being our duty to ensure the communities within the inner city and its surrounds are provided with safe, secure, clean and affordable accommodation,” said Rivers.
Joburg mayor Geoff Makhubo said while delivering his Budget speech last month that the biggest increases were the result of compulsory tariff increases by Eskom and Rand Water.
The Star