Hold on to your wallets! Tariff increases and more anger for eThekwini residents in 2024 budget

04/05/2024

Mayor of eThekwini Municipality, Mxolilsi Kaunda tabled the City’s Budget on Friday following a week of pickets and protests regarding its tariff increases among other issues.

The tabling of the budget happened in an embattled economy, poor service delivery and citizens who are struggling to make ends meet amid soaring prices of food, fuel, interest rates.

“We can proudly say that this is the people’s budget because we have listened to you and made necessary arguments. The social relief packages we are also providing to the vulnerable groups in our society are in line with our indigent policy. All this demonstrates that this is a pro-poor budget,” said Kaunda.

However, ratepayers movement chairperson, Asad Gaffar foresees a grim reality for the City.

“The reduction is nothing. The city is punishing ratepayers. Many businesses will be forced to close as a result,” said Gaffar.

He also urged councillors to vote according to their beliefs if their parties decided to sell out the residents.

Here the key takeaways from the budget:

The total budget for the 2024/2025 period is R67,2 billion and constitutes an operating budget of R59,5 billion and a capital budget of R7,68 billion.

Tariffs

The property rates tariff increase is reduced from the proposed 7.9% to 6.5%. The water tariff increase is reduced from the suggested 14.9% to 12.9%.

The sanitation tariff increase is reduced from the proposed 12.9% to 10.9%. The refuse tariff increase is decreased from 8% to 7% for domestic and reduced from 9% to 8% for business.

In response, Manor Gardens Ratepayers Association chairperson Janus Horn said that it is not feasible that the average person can afford to pay these increases.

He said: “Five percent maximum would be an acceptable increase. The water loss percentage is over 50%; they need to reduce that to 25%, then they’ll make the money. Why must the consumer pay their inability to actually maintain or run the City?”

Engineering (roads and storm water)

Engineering was allocated a capital budget of R660 million for roads and stormwater. According to the Medium Term Revenue and Expenditure Framework (MTREF), R1.69 billion would be spent on road rehabilitation and renovation, as well as new access roads.

Electricity

The municipality said it has set aside a total budget of R21.58 billion, which includes R20.9 billion for operations and R679 million for capital projects.

“The municipality has set aside a total budget of R21.58 billion, which includes R20.9 billion for operations and R679 million for capital projects,” Kaunda said.

Water and sanitation

The municipality a total budget of R11.65 billion for water and sanitation, made up of an operating budget of R10.18 billion and a capital budget of R1.47 billion.

“To maintain our wastewater treatment plants, pump stations and sewer lines, the municipality has allocated a total budget of R3.96 billion for this service. This comprises of an operating budget of R3.19 billion and a capital budget of R772 million.”

Cleansing and solid waste

This project is expected to cost R2.27 billion, with an additional R166 million set aside for repairs and upkeep.

The R368 million capital budget will be spent on new fleet and landfill site development projects.

Human Settlements

To deliver ‘quality human settlement services’, the municipality supposedly set aside R1.76 billion, divided between an operational budget of R948 million and a capital budget of R815 million.

The capital budget will be used to build 1,638 new residences, according to the mayor.

Community and emergency services

The municipality stated that it has budgeted an operational budget of R6.7 billion for this service. R153 million has been set aside to repair and maintain infrastructure, including swimming pools.

eThekwini Transport Authority (ETA)

With an operating budget of R1.56 billion and a capital budget of R696 million, this budget will be used to implement the Integrated Rapid Public Transport Network’s be Durban C3 corridor (Bridge City to Pinetown), which is set to go live in July of this year.

Economic growth and job creation

R728 million to build bulk infrastructure for catalytic projects.

Nutrition programme (soup kitchens)

The operating budget for this service for the upcoming fiscal year will be R137 million.

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