Gauteng and NW Province

Rates, electricity set to rise by 12%, solid waste by as much as 25%


Metro Reporter

Residents of Tshwane can expect to pay at least 12% more on charges for various municipal services from July 1.

Proposed increases are contained in the Tshwane Metro Council’s Medium Term Revenue and Expenditure framework (MTREF) for 2012/2013.

It has been proposed that electricity rates, and the cost of electricity and sanitation each rise by 12%, solid waste by 25% and water by 10%.

The proposed increases are expected to provide the municipality with R 15.8million a month.

A rebate of 50% will be granted to owners of rateable property, subject to the total combined gross income of the applicant and his or her spouse, if applicable, not exceeding twice the government’s approved annual state pension for the relevant financial year.

A maximum total rebate of 40% will be granted where the combined income of the applicant and his or her spouse, if applicable, is more than twice the annual state pension, but does not exceed R107 000 for the financial year.

To qualify, the rateable property concerned has to be occupied only by the applicant and his or her spouse and by dependents without income.

Chief Financial officer Andile Dyakala said that to a large extent, the increase in tarrif charges was “somewhat outside the municipality’s control where prices for bulk electricity and water are set by external agencies”.

“Discounting the impact of these price increases in lower consumer tarrifs indefinitely will erode the city’s future financial position and viability,” he said.

“It must be appreciated that the Consumer Price Index is not a good measure of the cost increases of goods and services relevant to municipalities,” said Dyakala.

A number of guidelines were taken into consideration when tarrif increases were considered, he said, and the metro will consult with communities before the increases come into effect.

Dyakala said in a report that the following austerity measures would be applied by the council:

–          The budget will be regionalised to ensure service delivery and decision-making is closer to the people.

–          Travelling, subsistence allowance and conference fees must be managed within budgetary limits.

–          Security services will be centralised and rendered by the metro police service department.

–          The corporate and shared services department will centralise control of furniture and fittings and implementation of council policy regarding the standard of furniture acquired for each level of seniority.

–          The furniture from regions 5 and 7 that became available when these areas were incorporated into Tshwane, must be used before new furniture is purchased.

–          No kitchen staff uniforms can be purchased under any circumstances, specifically not using petty cash.

Pretoria News

Monday, April 2, 2012

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