The new financial year will bring slight relief to Buffalo City Metro ratepayers. Executive mayor Alfred Mtsi announced that although a tariff increase would be effected when the 2016-17 financial year started on July 1, it would be lower than in previous years.
During the 2015-16 financial year, rates increased by 9.9%. Mtsi, who presented the draft budget during a council meeting this week, said rates would only increase by 7.6% in July.
The increased rate will also be reduced over the next few years for key services including electricity, water and refuse collection.
“The metro has reduced its increases as compared to those that were approved by council in the 2015-16 financial year,” he said.
The high 12.2% electricity increase in 2015-16 will be decreased in the upcoming financial year to a 7.6% increase. In the 2017-18 financial year Mtsi said the increase was expected to drop to 7.5%, and to 7.2% in 2018-19 financial year.
Water is expected to drop from an 11% increase last year to 8% this year. In the 2017-18 financial year the increase is expected to be at 7.9%.
Mtsi said: “You will take note that Eskom and Nersa were taken to court over the increase of 9.9% but it is our view that the outcome of the court case will not have any major bearing to our own adjustment.”
The fire levy, sewerage and sundry income increases are also expected to drop going towards the 2018-19 financial year.
Mtsi added that “our total budget is growing from R7.43-billion in the 2016-17 financial year to R8.75-billion in the 2018-19 financial year.
“Our commitment to respond to our people’s legitimate demand for a better life is reflected in a budget in which the key priorities are water and sanitation, human settlements development, roads and stormwater, transport planning and related critical infrastructure and maintenance,” Mtsi said.
A large portion of the metro’s capital budget will be allocated towards major infrastructure services, with waste water and roads and stormwater taking 42% of the budget. — mamelag@dispatch.co.za
Reduced rates to help ease burden
During the 2015-16 financial year, rates increased by 9.9%. Mtsi, who presented the draft budget during a council meeting this week, said rates would only increase by 7.6% in July.
The increased rate will also be reduced over the next few years for key services including electricity, water and refuse collection.
“The metro has reduced its increases as compared to those that were approved by council in the 2015-16 financial year,” he said.
The high 12.2% electricity increase in 2015-16 will be decreased in the upcoming financial year to a 7.6% increase. In the 2017-18 financial year Mtsi said the increase was expected to drop to 7.5%, and to 7.2% in 2018-19 financial year.
Water is expected to drop from an 11% increase last year to 8% this year. In the 2017-18 financial year the increase is expected to be at 7.9%.
Mtsi said: “You will take note that Eskom and Nersa were taken to court over the increase of 9.9% but it is our view that the outcome of the court case will not have any major bearing to our own adjustment.”
The fire levy, sewerage and sundry income increases are also expected to drop going towards the 2018-19 financial year.
Mtsi added that “our total budget is growing from R7.43-billion in the 2016-17 financial year to R8.75-billion in the 2018-19 financial year.
“Our commitment to respond to our people’s legitimate demand for a better life is reflected in a budget in which the key priorities are water and sanitation, human settlements development, roads and stormwater, transport planning and related critical infrastructure and maintenance,” Mtsi said.
A large portion of the metro’s capital budget will be allocated towards major infrastructure services, with waste water and roads and stormwater taking 42% of the budget. — mamelag@dispatch.co.za
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos