Tariff hike announced

2018-06-13 06:00
A waste recycler scrambling for possible sellable items from a ton of uncollected waste dumped on the corner of Bastion Street and Harvey Road in Bloemfontein. Photo: Teboho Setena

A waste recycler scrambling for possible sellable items from a ton of uncollected waste dumped on the corner of Bastion Street and Harvey Road in Bloemfontein. Photo: Teboho Setena

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While residents are disconten­ted with the inability of the Mangaung Metro to deliver quality service, the withholding of the payment of rates and taxes is no option as a measure to demand improvement.

Residents should now brace themselves for a 7% tariff hike, which takes effect on 1 July, in midst of the wave of discontent.

This increase, as well as an increase of 6,01% on electricity, was announced by Mangaung Metro Executive Mayor Olly Mlamleli in a budget presentation on 31 May.

According to Mlamleli, the total revenue budget is projected at R7,337 billion in 2018-’19 (including capital grants, mainly the Urban Settlement Development Grant).

According to her, this represents an increase in revenue of R50 million (this shows an increase of 0,68% on the 2017-’18 adjustment budget of R7,288 billion).

Mlamleli said the city would further receive bail-out grants and subsidies worth R2 billion in the form of operating and capital allocations.

She said operating grants were budgeted for at R1 billion and capital grants would reach R1 billion in the 2018-’19 financial year.

“These transfers represent 27,65% of the guaranteed income of the Mangaung Metro,” said Mlamleli.

According to Mlamleli, the projected revenue for refuse and trade removal would be R121,7 million, an increase of 11,78% from last year, and revenue of R131,112 million and R144,3 million for 2019-’20 and 2020-’21, respectively.

Mlamleli said the tariff hike had been agreed upon after consideration of the revenue scenario, as well as many other options in terms of proposals presented before the city council.

She said the rates and taxes policy had also been amended to provide for an exemption of R80 000 per residential pro­perty.

The assessment rates for residential properties remain the lowest among the country’s metros, being at 0,7491 cents.

Sewerage tariffs will increase by 8,30% on average for both residential and non-residential properties in the 2018-’19 financial year.

Refuse removal tariffs will increase by 10,83% across the board.

Water tariffs are to increase by 11,65% for 2018-’19, with a basic charge of R27,60 per month for properties with a market value above R80 000.

Electricity tariffs will increase by 6,84% (on average) for the 2018-’19 financial year.

Mlamleli said other general tariffs would be increased by an average of 10%, with effect from 1 July.

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