Germiston residents are set to pay more for service delivery.
From July 1, new tariffs will be implemented throughout the metro.
The Ekurhuleni budget speech was presented to council in the Germiston council chambers on Thursday, by Clr Moses Makwakwa, a member of the mayoral committee responsible for the finances of the metro.
The metro approved the following tariff increases, and stated that these will ensure continued service delivery in the metro:
- A 7.5 per cent increase in assessment rates.
- Eskom’s national tariff increase is 8.06 per cent, however the metro is planning to absorb at least 1.3 per cent of these charges, by passing on only the increase of an average of between 6.3 per cent to 7.6 per cent on electricity.
- An 8.1 per cent increase on water for both residential and business which is the same increase as Rand Water.
- An eight per cent increase on sanitation for both residential and business.
- Refuse removal increases range between 2.4 per cent to 7.1 per cent for residents and 6 per cent for business.
- There will be no increase on cemeteries and recreational halls.
“Factoring these proposed tariff increases, the average increase on accounts will be about 7.3 per cent compared to the 9.3 per cent average increase in the 2013/2014 budget.
“This is a clear demonstration that we are committed in providing affordable services and to broaden access,” stated Makwakwa.
The DA rejected the budget and the increases.
According to the DA’s Eddie Taylor, the average seven per cent increase will hurt people.
“Why are we going this high?” he asked.
“People’s salaries don’t even increase by seven per cent.”
Commenting on the electricity increase, he said he wasn’t sure how the metro is going to explain this to the people
To accompany these proposed tariff increases the metro has provided the following social packages relief:
- The first R150 000 on property value is exempted from assessment rates.
- For pensioners, an additional rebate for property assessments ranges from 10 per cent to 100 per cent.
- Churches and NGO’s are exempted from assessment rates.
- All households will still enjoy 6 kilolitres of water and sanitation services for free.
- An additional incentive of 100 kilowatts of free basic electricity to low end users.
“The people of Ekurhuleni will be pleased to know that we have allocated just under R800-million,” said Makwakwa.
Therefore all registered indigents will continue receiving the following services:
- 100 per cent rebate on assessment rates.
- Free nine kilolitres of water.
- Free nine kilolitres of sanitation.
- Free refuse removal.
- 100 kilowatts of free basic electricity.
- Free burial.
A further R17-million has been set aside for the Grant in Aid programme.
Makwakwa explained, “All of these we provide in understanding the metro’s current socio-economic conditions.
“Based on National Treasury assessment during May 2014, the metro remains the most affordable metro to live in, at an average household bill of R1 265 per month with the highest being R1 626.
“Ekurhuleni is still below the average of all the metro’s which is R1 472 per month.”
The metro remains very concerned by the fact that collection rates are still below the target of 93 per cent.
For more on the 2014/15 budget click here: https://bit.ly/1jO2QP5
