Pretoria - Ratepayers in Tshwane should brace themselves for increases in municipal rates and services from July 1, despite grappling with load shedding, power outages and water interruptions.
This is detailed in the City’s draft budget for 2023/24, which has been passed in council and is now out for public participation.
Part of its proposals to residents and businesses was a steep tariff increment of 18% for electricity.
MMC for Finance Peter Sutton said the increase was in line with the guideline for bulk purchases from Eskom, which was granted a bulk tariff increment of 18.49% by the National Energy Regulator of SA (Nersa).
According to the proposed increases, registered indigents would be granted 50kWh free of charge in line with national policy.
“However, all properties below the threshold will automatically qualify for free basic services,” said the draft budget report.
The budgeted revenue for water services increased by 5% and the bulk purchases tariff for Rand Water increased by 9.2%.
According to the proposal, the City would be considerate to poor households registered under the indigents programme, as registered indigents are granted 6kℓ water free of charge.
Residents can also expect to dig deeper into their pockets for refuse removal, which was likely to see a tariff increase of 6%.
On the other hand, the City proposed a 9.2% tariff increment for sanitation, saying charges for the service were calculated according to the percentage of water discharged.
Regarding property rates, a tariff increment of 5% has been proposed for the next financial year.
The report said: “The first R15 000 value of all residential properties, is legislatively impermissible for the charging of property rates, and a further valuation reduction of R135 000 is granted by council for charging of property rates.
“All residential properties are thus not charged any property rates on the first R150 000 of the value and registered indigents pay no property rates. Rebates to pensioners and the disabled were updated in the property rates policy for 2023/24.”
The outcome of the public consultation process was expected to be included in the final draft budget, which was expected to be endorsed before July.
In terms of the draft budget the City would table an operating expenditure of R44.6 billion, which is projected to escalate to R52 billion in the 2025/26 financial year.
The report further stated: “The total grants allocated for the 2023/24 financial year amount to R7.1 billion. The total amount allocated for the 2023/24 financial year on operating grants is R5.1 billion and infrastructure allocation is R2 billion.
The City’s equitable share allocation is R4 billion, and the neighbourhood development partnership grant public employment programme allocation is R146 million which includes a 10% allocation for capital equipment.”
A month-long public participation exercise undertaken by the municipality would afford residents a chance to comment on the draft budget and the City’s integrated development plan.
Residents would be expected to comment on the service delivery needs in their wards and on the proposed tariff increases.
Pretoria News