Prepare for tariff hike: electricity up by 25%
2009-04-02
Sieb Sieberhagen
RESIDENTS of Drakenstein can expect to pay at least 10% to12% more in municipal rates and taxes from 1 July, according to the draft budget approved on Tuesday. This includes a 25% increase in electricity fees due to Eskom’s price hikes. Although the Municipality is aiming to raise its income from property tax by only 7,5%, the hike could be a much higher where property valuations have increased by 100% or more. At Tuesday’s council meeting, the DA’s opposition coalition’s spokesperson on finance, councillor Deetlefs du Toit, warned that increased property valuations would heavily impact ratepayers, despite a decrease in the property tax rate, “because valuations have increased by an average of 128% and ratepayers can expect to see an average increase of 30% in their municipal bills.” About 80% of households will pay less than R450 per month. The draft budget is available for inspection and comment at municipal offices and libraries until 30 April. According to the municipality’s executive director of finance, Cavin Petersen, the expected monthly household account (basket) is to rise by about 12,6% for a small household and 11% for bigger households. He explained to the council that the average increase of property values is “almost 100%” therefore the proposed tax rate would be 0,005c in the rand from 1 July, just over half the current rate of nearly 0,009c. Other increases approved are: water 10%, and sanitation and refuse removal both 7,5%. Various rebates will benefit indigent households (income below R2626 per month) and pensioners (20% property tax rebate below R1,7m valuation). The free services that Drakenstein renders, will amount to a total of R45,7 million during the budget year 2009/2010. This includes 10kl of freewater for all households,100 units electricity free for indigents, 150 units free for unemployed, and 100 units free electricity for farmers, rebates for properties valued below R150 000, as well as the free removal of refuse from skip bins. The total budget for 2009/2010 added up to almost R1,2 billion when the draft budget was tabled. The capital budget is R262 million and the operational budget R919 million (an increase of 16,62%). The projected income for 2009/2010 is R919 million, up from R788 million. Only 54% of the capital needs for the 2009/2010 bookyear could be addressed. Said ANC spokesperson on finance, councillor JT Basson, “This is purely as a result of financial constraints as Council does not want to burden the consumers with excessive external loans.” The five biggest items in the capital expenditure are housing (R59,1 million), water (R41,7 million), waste water management (R52,6 million), electricity (R27,4 million) and corporate services (R24,1 million). Operational projects include maintenance and repair of community halls, street, sewerage and water network repairs.
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