eThekwini mayor details people-centred budget for residents

DURBAN - THE new tariffs that have been imposed by the eThekwini Municipality for the new financial year have been described as the lowest in years.

Mayor Mxolisi Kaunda detailed the new tariffs as he tabled his budget for the 2022-2023 financial year at the Durban ICC yesterday.

Kaunda described the R54 billion budget as being people-centred with a focus on the challenges faced by the city’s residents.

The budget comes up for a vote before the full council in seven days where it is likely to be passed but amendments could still be made.

Among the issues that raised concern was the increase of borrowing from R1bn to R1.5bn. The city said it had to increase the borrowings to accommodate the challenges it was facing as a result of the floods.

In tabling his budget, Kaunda said: “The proposed tariff and rate increases are the lowest for years as we sincerely appreciate the plight of our residents.”

The proposed increases are as follows:

There is no proposed increase for residential property rates. Instead, the city said the rate randage on residential properties would decrease by 10% due to the implementation of the new valuation roll.

Water tariff increases for residential properties are 5.9% and 9% for business.

Electricity tariff increase is 7.47%. This is against an Eskom hike of 9.61%.

The sewerage tariff increases for residential 5.9% and 9% for business.

The refuse tariff increase is 4.5% for residential customers and 7.9% for business.

“As a caring and responsive city, we want to assure the residents and businesses of eThekwini that we have worked very hard to keep the tariffs and rates increases as low as possible. Municipalities are currently facing a difficult fiscal environment. These tariff increases represent an appropriate balance between the interest of poor households and other customers while ensuring the financial sustainability of the municipality.”

Kaunda gave a detailed breakdown of the spending priorities of the budget. The capital budget for the 2022/23 financial year amounts to approximately R 5.6bn and thereafter at R4.9bn in 2023/24.

A provision of R5.1bn has been made for the 2024/25 financial year. The capital budget continues to reflect consistent efforts to address backlogs in basic services and the renewal of the infrastructure of existing network services, in particular Water and Sanitation.

The major capital projects over the Medium Term Revenue and Expenditure Framework include:

R2.2bn on electricity infrastructure R2.1bn on the eThekwini Transport Authority

R1.9bn on low-cost housing and infrastructure

R1.9bn on sanitation infrastructure R1.5bn on water infrastructure R1.3bn on roads rehabilitation and reconstruction, and new access roads

R804 million on addressing community service backlogs

DA councillor Nicole Graham said they are concerned about the increase in borrowing.

“We have to cut our operating costs, the financial stability for the city requires tough decisions to be made, overtime has become expected with almost half of the city staff claiming overtime every month,” she said.

IFP councillor Mdu Nkosi said the people of eThekwini wanted service delivery and implementation.

“In 2020 we were talking about Go Durban we’re still talking about it, it is now being vandalised and we have put security to guard it, that is a waste of money. People complained about houses and service delivery.”

Patrick Pillay of the DLC said the budget was historical.

“While this year we have the lowest tariff increases. We must act to make sure that overtime is not abused.”

ANC councillor Nkosenhle Madlala said: “The budget says we want to be a city that attracts investors, that shows we care for the city residents, rich and poor.”

Thabane Miya of the EFF said the party supported the budget as it addressed many emergency issues.

Asad Gaffar of the Westville Ratepayers Association said while it was accurate that this year the city imposed tariff increases that were less than what they have done in previous years, residents should not be quick to see this as a win.

He said in the case of the decrease in property rates due to the new valuations roll, property prices had decreased because the city had not been maintaining areas and infrastructure in those areas.