Residents will, once again, have to grind their teeth and pay more for services that, in the eyes of some residents, are non-existent.
This will hurt the people more as they struggle daily to survive in this bad economic climate, and this is while the Executive Mayor, Cllr Zuma, insists on spending money on projects such as the huge failure, SEJACUFE. SEJACUFE is reported to surpass the R5m mark.
The following is stated in the Draft Budget Medium Term Revenue and Expenditure Forecasts (2024/2025)
Residents will have to face the following increases:
That proposed tariff increases BE ADOPTED in principle:
ASSESSMENT RATES
All property taxes as per the 2023/2024 tariff book increased by 4.9%.
SEWERAGE
All sewerage charges as per the 2023/2024 tariff book increased by 5.9%.
REFUSE
All refuse charges as per the 2023/2024 tariff book increased by 4.9%.
WATER
All basic water charges as per the 2023/2024 tariff book increased by 5.9%
ELECTRICITY
All basic electricity charges increase by 9.86% in line with NERSA
DEPOSITS
Tariff book 2023/24 book increased by 4.9%.
MISCELLANEOUS TARIFFS
- As per the 2023/24 tariff book increased by 4.9%.
- These are tariffs that are used on a need basis.
- All tariffs exclude VAT except in the case of assessment rates that are zero-rated.
INTEREST / CAPITALIZED ARREARS
- No interest will be levied on those arrears for which the consumer made formal arrangements.
- Interest will only be levied on those arrears for which no formal arrangement exists and/or arrears as a result of not complying with the said arrangements.
- Interest rates will be levied at market-related rates.
The municipality is implementing the inclining block tariffs on electricity and water. The IBT for the electricity is in line with the NERSA guidelines. The water tariffs are also designed using the inclining block model to promote a conservative approach to domestic consumers.
The municipality will still ensure that the poor are protected through the indigent support scheme as per the indigent policy and debt collection strategy. The threshold for increasing free basic services for a household will be reviewed. The increase in the package indicates the municipality’s commitment to protect the poor and also to ensure that those who cannot afford to pay are not burdened with the unpaid accounts.
The 2024/2025 draft budget comprises of R 3 149 billion for operating expenditure and R 117 million for capital investment programs. The total operating income budget is R 3 261 billion resulting in an operating deficit of R 111 million.
The budget that is contained in the agenda for March when it was passed by majority vote paints a pretty bleak picture.
GMM’s draft budget is R3149 billion which, currently, the municipality’s creditors amount to R5.5 billion, with Eskom and Rand Water’s debt totalling to R5.4 billion. The current outstanding creditors are in line with the cash flow, therefore the municipality is unable to pay its creditors timeously which might lead to litigations.
The municipality will be unable to pay the obligations when they become due and that will result in non-compliance with section 99(2)(b) of the Municipal Finance Management Act
There is no doubt that the new tariffs will have an adverse effect on all stakeholders.
While Eskom will be increasing the tariffs by 12% GMM approved an increase of 9,86%.
GMM is already struggling to cover just the normal costs, let alone a deficit on bulk purchases.
Read the adjustment budget HERE
