Durban - Ratepayers are on the warpath over eThekwini Municipality’s “excessive” tariff increases proposed in a draft budget for 2023/2024.
The newly-formed eThekwini Ratepayers and Residents Association (Erra) will gather before the City Hall on Monday “to tell the mayor that we are not interested in his (proposed) tariff increases until he tells us where our money has gone”.
The city has proposed that its operating budget be increased from the current financial year’s R49.8 billion to R57.9 billion for 2023/2024 and that property rates take a 8.9% increase on average; water would cost 14.9% more at residential sites and 15.9% more at business sites; sanitation would be increased by 11.9% and 12.9% respectively; and there would be a 21.9% increase in electricity for all.
Refuse costs would go up 8% for domestic ratepayers and 7 to 9% for “sundry and business”.
Erra president Ish Prahladh said: “We are going to fight the city. We have legal eagles behind us.”
He told the Independent on Saturday the organisation, which includes 53 ratepayers associations, civic and other organisations as members, was considering calling on people to pay partial rates.
“If you owe R1 000 for lights and water and you pay only R600, they can’t cut you off.”
Westville Ratepayers’ Association chairperson Asad Gaffar elaborated: “The issue is the wasteful and unnecessary expenditure that the city is incurring.”
He said increased tariffs would mean additional money to squander.
“The city has done away with internal staff, many jobs have gone to contractors. They are not managed properly because of policies and the governance of KZN having radical economic transformation high on the agenda, coupled with preferred tendering that in itself is a problem.”
Gaffar warned that resistance from the ground is going to be very high.
“Ratepayers are fed up. They are not prepared to put in money if they are not going to get services.”
The Durban Chamber of Commerce and Industry said the tariff increases remain substantially ahead of CPI which will impact negatively on the competitiveness of Durban as a business location.
“The retention of businesses within Durban is a priority and tariff increases should not be punitive,” the chamber said in a statement, describing the tariff increases as “excessive”.
“The Covid-19 pandemic, 2021 July unrest, April floods and load shedding have derailed many businesses. The possibilities of businesses shutting down remain high. Furthermore, businesses are experiencing frequent disruptions to basic services such as water and electricity.”
On Water and Sanitation, the chamber said that following the April 2022 floods, as organised business, it was deeply concerned about the slow pace at which infrastructure is being restored.
“To date we have not received a detailed infrastructure investment plan from the city outlining the technical and risk mitigation measures.
The chamber said it acknowledged the city’s commitment of R5 billion over the next three years towards water and sanitation, but that the city needs to engage with private sector to determine a detailed cost analysis.
“Simply allocating resources without a detailed water and sanitation infrastructure audit simply leaves us in the same position. The crisis is bigger than we think with dire economic consequences.”
The chamber said it was pleased that the National Treasury had transferred R1.5 billion of the disaster response grant.
“There needs to be more resources deployed to deal with the extent of the damages. As organised business, we have worked with private sector to help support the city. We are requesting that the city considers a public private partnership to help fast track the rebuild and recovery process.”
The Abahlali baseMjondolo shack dwellers’ movement said the issue of proposed tariff increases would be one of a number that would addressed in a memorandum to be presented to a representative of President Cyril Ramaphosa after an “unFreedom Day” march from Curry’s Fountain to the City Hall on April 26.
eThekwini Municipality spokesperson Lindiwe Khuzwayo reminded residents that this is the period of public consultation. All citizens and stakeholders are encouraged to raise their views regarding the proposed increases so that they can be considered before the budget approval in May/June 2023.
She added that it was also important to note that as much as inflation levels were a key factor on deciding tariff increases, they were not the only factor to influence the decision and other factors were considered during the budget preparation.
“These include maintenance and ensuring that services will be delivered efficiently to all our residents.
Khuzwayo also pointed out that the proposed tariff increases were a necessity to recover from a series of disasters that the city had experienced within the last three years.
- Prahladh said ERRA members were: Verulam Rate Payers Association; Tongaat/La Mercy Civic; Reservoir Hills Rate Payers Association; North Beach/South Beach Ratepayers Association; Musgrave Ratepayers Association; Moorton Ratepayers Association; Phoenix Civic Movement; Grove End-Stanmore Ratepayers Association; Asherville Ratepayers Association; New Germany Ratepayers Association; Clare Estate Ratepayers Association; Athlone Park-Amanzimtoti Ratepayers Association; Giving Home NGO; Voice of Phoenix; Claremont Ratepayers Association; Bayview Ratepayers Association; Isipingo NPO; Umhlanga Ratepayers Association; Umhlatuzana Ratepayers Association; Centenary Park Civic; Crossmoor Civic; Sherwood Park Ratepayers Association; Mamsutu Forum; Abahlali baseMjondolo; Seaview/Rossburgh Ratepayers Association; Kokoba Forum; Woodhurst Civic; Savannah Park; Glenwood/Umbilo; Kenville/Sea Cow Lake; Valencia Gardens/Newlands; Verulam Civic; Tongaat Ratepayers Association; Claremont Ratepayers Association; Bottlebrush Forum; Palmiet Forum; Springfield/Puntan’s Hill Ratepayers Association; Chatsworth and District Civic Forum; Padfield Action Group; Kharwastan Civic; Harrinagar Ratepayers Association; Mayville Ratepayers Association; Queensburgh Ratepayers Association; Greenwood Park Ratepayers Association; Glen Hill Ratepayers Association and Woodview Ratepayers Association.
The Independent on Saturday