‘Metro Meltdown’ over rates increase

Ward 58 councillor Geoff Pullan and eThekwini Exco member councillor Yogis Govender, who has said that the DA has received more than 10 000 objections to the proposed tariff increases by eThekwini Municipality. Picture Tumi Pakkies/ African News Agency (ANA)

Ward 58 councillor Geoff Pullan and eThekwini Exco member councillor Yogis Govender, who has said that the DA has received more than 10 000 objections to the proposed tariff increases by eThekwini Municipality. Picture Tumi Pakkies/ African News Agency (ANA)

Published May 23, 2023

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Durban — Thousands of eThekwini ratepayers have objected to the new proposed tariff increases.

This was revealed by eThekwini Executive Committee member councillor Yogis Govender, who stated that the DA had received 10 000 objections from eThekwini residents who said that the tariff hikes were unaffordable and that they did not receive their money’s worth.

Govender said residents complained that they did not get the services they were paying for. She said that services were collapsing, and yet the eThekwini Municipality decided to increase the electricity tariff to almost 3% beyond what was approved.

“It is hardly surprising that ratepayers have rejected the increases. The electricity and water units of the municipality are on the verge of collapsing due to a lack of funds for maintenance and rehabilitation. Durban’s sewer network is not far behind, and has been dubbed the ‘Metro Meltdown’ by the media,” Govender stated.

Businesses and residents find living and conducting business in eThekwini to be intolerable, as a result of recurring service delivery failures, said Govender.

In the budget, eThekwini mayor Mxolisi Kaunda proposed a 21.91% electricity hike for businesses and households.

The proposed tariff increases are:

• Electricity: 21.9%

Water:

• Domestic: 14.9%

• Business: 15.9%

Refuse removal:

• Domestic: 8%

• Business: 7-9% Sanitation:

• Domestic: 11.9%

• Business: 12.9%

• Rates: 8.9%

Govender said that if the municipality was better at managing its finances and collecting more revenue, it would not be required to impose such substantial price hikes. The DA would vote against these increases as per the mandate given to them by thousands of eThekwini residents.

IFP eThekwini caucus leader Mdu Nkosi said that the proposed tariff hikes were unaffordable. Nkosi said residents and businesses were still recovering from the Covid-19 lockdown and April 2022 floods.

“Who will want to continue doing business with a city that demands so much in taxes from them?” Nkosi asked.

EFF eThekwini caucus leader and Exco member Themba Mvubu said the tax base was gradually shrinking because many people were unemployed.

“The EFF derives no pleasure in such increases, but where else would the council get the money for service provision?

“We appeal to those who have the means to fund those who cannot afford to pay for such increases,” Mvubu stated.

ActionSA KZN chairperson Zwakele Mncwango said that it was the councillors who would vote for the council budget, not the public.

“The DA should be engaging this matter with the councillors who will be making decisions during the budget vote. The DA should be engaging other political parties in such matters, instead of petitioning the man on the street. They have done the correct thing in the wrong way,” Mncwango said.

eThekwini ANC Exco member Nkosenhle Madlala said: “We believe the ‘signature campaign’ by the DA is premature, opportunistic and risks undermining this important democratic process.

“Political parties are expected to popularise the budgetary process, educate and empower communities with information, mobilise them to attend, and lobby them to push certain positions in these public consultation meetings. Anything outside this is cheap politicking and opportunistic.”

eThekwini Municipality spokesperson Lindiwe Khuzwayo stated that the City’s draft budget for the 2023/24 financial year focused on restoring, rebuilding and stimulating job creation. The budget prioritised the provision of basic services and the stimulation of the economy for job creation.

The municipality’s proposed social package will be providing the following rates lifeline to poor households:

• Residential properties valued up to R350 000 will be exempt from paying rates.

• For all other properties valued above R350 000, there will be no rates charges on the first R120 000.

• A further allowance will be afforded on application to all residential property owners with a total household income of R3 970 and less and with a property value of more than R350 000 and less than R650 000

• Pensioners, child-headed households, disability grantees and medically boarded property owners are exempt from paying rates, where their annual rates do not exceed the maximum rebate of R5 290.

Khuzwayo added that for pensioners who owned residential properties valued up to R2 500 000, there would be no rates charged on the first R590 000.

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