Latest news with #eThekwiniRatepayersProtestMovement
IOL News
24-05-2025
- Business
- IOL News
How Durban's R70. 9 billion budget aims to transform infrastructure and manage tariff adjustments
The eThekwini Municipality's R70.9 billion proposed 2025 and 2026 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations. The eThekwini Ratepayers Protest Movement said they still object to the proposed tariff increases outlined by the municipality. Image: Supplied The eThekwini Municipality's R70.9 billion proposed 2025/26 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations. The MTREF reports will be discussed at a council meeting on Monday for approval. The proposed budget was approved by the Executive Committee (EXCO) on Friday. The municipality stated that the budget is shaped by extensive public consultations and National Treasury guidelines and that the budget prioritises infrastructure reconstruction, following recent storm disasters. It said the budget strengthens trading services and the assurance of sustainable service delivery. The 2025/26 budget comprises a R63.6 billion operating budget and a R7.3 billion capital budget. A significant focus of this MTREF is the reconstruction and rehabilitation of infrastructure damaged by recurring storms, with a 'build back better' approach to mitigate future risks. The budget also emphasises turnaround strategies for trading services to enhance efficiency and improve the quality of life of residents. Acknowledging the economic pressures on households, the municipality has revised several proposed tariff increases, following an extensive public participation process held from April 22 to May 17, 2025. Key adjustments for the 2025/26 financial year include: Assessment Rates: The increase was reduced from 6.5% to 5.9% Water Tariff: Residential increase reduced from 15% to 13%, and business from 16% to 14%. Sanitation Tariff: Residential increase reduced from 13% to 11%, and business from 14% to 12%. Refuse Tariff: Domestic increase reduced from 9.9% to 9% Electricity Tariff: Set at a 12.72% increase, as guided by the National Energy Regulator of South Africa (NERSA). The R7.3 billion capital budget will be funded through a combination of grants (R3.24 billion), internal funding (R2.06 billion), and external borrowing (R2 billion). The budget formulation process included comprehensive public hearings across all regions and engagement with various stakeholders, including business and traditional leaders, as well as opportunities for comment through multiple media platforms. The municipality stated that public concerns, such as high tariffs, road rehabilitation, housing project progress, and maintenance of social facilities, were taken into consideration, leading to amendments to the proposed budget. eThekwini Mayor Cyril Xaba said that following a benchmarking engagement on April 23, the National Treasury found the budget to be credible, relevant, and sustainable, while noting areas for improvement in the Municipal Standard Chart of Accounts data. Asad Gaffar, chairman of the eThekwini Ratepayers Protest Movement, said they still object to the proposed tariff increases outlined by the municipality, in the context of a deepening affordability crisis, increasing resident debt, and ongoing failures in service delivery. Gaffar said the ERPM finds these proposed increases both indefensible and unsustainable. The ERPM concerns were affordability crisis, escalating debt levels, service delivery failures, and lack of accountability. It continues to push for oversight of contractor and municipal projects. 'All proposed tariff adjustments must be suspended until there is clear evidence of improved service delivery and proper use of current revenue. The municipality must provide full disclosure on how previous tariffs were allocated, with a detailed plan for how any future increases would be used,' Gaffar said. Ish Prahladh, from the eThekwini Ratepayers and Residents Association (ERRA), said they have submitted a lengthy list of objections concerning tariff increases from all the ERRA affiliates. [email protected]
IOL News
23-04-2025
- Business
- IOL News
Ratepayers express concerns over eThekwini's double-digit tariff hikes
eThekwini Ratepayers and Residents Association (ERRA) chairperson Ish Prahladh said the people cannot accept double-digit tariff increases. Image: Supplied Ratepayers in the eThekwini Municipality have voiced their concern over double-digit increases in tariffs and how their money is spent in the Integrated Development Plan (IDP) budgets for 2025 and 2026. The City's 2025/26 draft IDP/Budget consultations themed, Infrastructure Building and Service Delivery Budget, began with the business sector and ratepayers associations on Tuesday. The engagements will conclude on 14 May and after considering all inputs, the draft IDP/Budget will be adopted on 22 May. The R71.3 billion draft budget comprises an operating budget of R64.2 billion and a capital budget of R7.1 billion. The IDP is the key strategy that guides development and service delivery in the City. The plan gives an indication of the goals and initiatives the municipality will focus on over the next five years. eThekwini Mayor, councillor Cyril Xaba, said that the consultations are critical to ensure that residents own their municipality. 'This is your city. We take all inputs very seriously. You have the ability to shape the future of eThekwini.' Some of the major highlights of the draft 2025/26 draft budget are significant amounts being allocated to take care of essential services. About R859 million has been allocated for electricity and this will fund the ongoing extension and reinforcement of existing electricity networks, as well as 17 new substations that are being commissioned. The capital budget for water is R1.15 billion and will be spent mainly on the water loss intervention programme and the replacement of water pipes. Proposed tariff increases for electricity are 12.72%, water 15% for domestic customers and 16% for business. Sanitation is 13% for domestic and 14% for business, refuse removal is 9.9% for domestic and 9% for business. For property rates, the proposed tariff increase is 6.5%. eThekwini Ratepayers Protest Movement (ERPM) chairperson Asad Gaffar said there is a definite sense that mayor Xaba is a much stronger leader than what the city had previously been subjected to. Gaffar said that Xaba has inherited a trust deficit that will be difficult to conquer. Gaffar said the new budget is hitting the ratepayers for an additional R6 billion at a time when service delivery is at an all time low. 'Extended water and electricity outages have left the ratepayers of our city beyond frustrated. Many of our ratepayers have left this city because it's failed them. There are critical projects not yet funded and yet there are parties and music events peppered into the budget to the tune of over R30 million,' Gaffar said. Gaffar said that the tariff increases are beyond the household budgets and people are going to be defaulting on their bills. "With the current tariffs, people are working to pay the municipality. They have no disposable income for property maintenance, school uniforms, car services, tyres, etc. We are slaves to our municipal bills. It's not sustainable,' Gaffar said. Gaffar said the city administration must prove that it is spending ratepayers money for its purpose and start delivering on its core mandates. Gaffar said that the city should prove that it can operate last year's budget without any fruitless and wasteful expenditure before they come to ratepayers demanding more. 'Our rates should be dropped. We pay more than anywhere else in the country on property rates and have to live with polluted rivers, potholed roads, ornamental street lights, broken pavements, overgrown verges, dry taps, power failures, dysfunctional call centres and agents. The list goes on,' Gaffar said. eThekwini Ratepayers and Residents Association (ERRA) chairperson Ish Prahladh said the people cannot accept double-digit increases considering the high unemployment rate in the communities. Prahladh urged the municipality to look at other ways to get revenue beside tariff increases. Prahladh was concerned about the housing crises, the budgets allocated to them and the growing number of informal settlements in eThekwini. 'Not a single house has been built to clear out the shacks from our community. I do not see the budget going anywhere. The entrance to Reservoirs Hills, one of the ratepaying contributors, is in a deplorable state. The place has become a dump. The ratepayers are paying to clean up the area around informal settlements. There is a water pipe exposed from 2022,' Prahladh said.
