UMHLATHUZE ratepayers can expect increases in tariffs for property rates, waste management, water and electricity for the new financial year.
The proposed tariff hikes were highlighted during the tabling of the medium term revenue framework draft budget for 2014/2015 at a full Council sitting on Thursday.
The draft budget, which has been described as ‘one that caters for the poorest of the poor’, proposes an increase of 18% for business, commercial industrial and mining property rates and 12% for residential property rates.
There are proposed increases of 8% for waste management, between 6% and 8% for domestic prepaid electricity tariffs, between 5% and 6% for water: purified domestic (0-15kl) and 7% for water: purified business (0-15kl).
According to the report, the budgeted deficit of R167-million for rates and general services was of ‘serious concern with the bulk of the surplus offsetting the deficit coming from electricity services, which was going to post a R156-million surplus in 2014/15’.
Investment
The 2014/2015 draft budget, presented by City Mayor, Elphas Mbatha showed an operating revenue of R2 370 559-billion, an operating expenditure of R2 363 247- billion resulting in a surplus of R7.3-million. Total capital expenditure stands at R259 438-million.
Commenting on the proposed rates increases, Cllr Dumisani Nxumalo questioned whether the amount could not be dropped to single digit increases.
In his response, CFO Mxolisi Kunene said the figures could be revisited after the participation process but added the rates increases for business in particular had been relatively low over a period of time.
Budget participation meetings are due to take place between April and May before it is adopted in June.
Significant capital projects
· Rural sanitation – R59-million
· Water – rural/semi-urban – R29-million
· Construction of reservoir Empangeni (Hilltop) R23.2-million
· Rural household infrastructure grant – R4.5-million
· Upgrade of Empangeni Sewer – R3.8-million
· Municipal water infrastructure grant projects – R18.8-million
· eSikhaleni Fire Station – R9.5-million
· Aquadene Library – R4.5-million
· IT equipment – R7.9-million
· Civic Hall (Planning) – R3-million
· Renovations – offices (financial services) – R4.9-million
· Cygnus MV switchgear – R14-million
· Dumisani Makhaye electrification – R4.2-million
· Mzingazi electrification – R2.6-million
· Mandlazini electrification – R1.3-million
· John Ross/Empangeni Main Road – street lighting – R2.2-million
· Refuse trucks – R4-million
· Replacement of vehicles and plant – R7.8-million
· Water tankers – R1.5-million
· Tanner Road rehabilitation – R5-million
