Tariff increases will tighten belts
2009-06-04
Sieb Sieberhagen
RESIDENTS of Drakenstein will now have to tighten their belts even more after last Wednesday’s acceptance of the 2009/ 2010 municipal budget. It resulted in a 31% tariff increase in electricity, 10% on water and 7,5% each on sanitation, refuse removal and the sundry tariff. An ongoing debate on calculations after property valuations were done recently, gave opposition parties reason to pull out all the stops to halt the acceptance of the budget. The ANC majority Drakenstein council ruled with a 31 to 29 vote count in favour of the 2009/2010 budget. The budget totals to over R1,2 billion. The operational budget is just higher than R940 million and the capital budget just over R293 million. The DA and their coalition, with 29 members in council, tried as last option with an amendement to object against the 31% increase in electricity and the proposed tariff on property rates of 4,9 cents in the rand. Previously it was more than 8,7 cents in the rand, but still with the old property valuations in place. Two months ago the draft budget recommended 5,13 sent in the rand and forecast an average increase of 7,5% in residential property tax. In the light of the new property valuations, the DA argued that Paarlites will pay an average of between 22,55% and 38,80% more for property tax and Wellingtonners between 32,04% and 52,09% more. With their amendment, they proposed a 4.1 cent on property taxes on the new property valuations. Councillor Koos Louw, DA coucus leader, cited two examples of properties where the increase will be higher than 35%. He told council that an independent expert on property tax came to the conclusion that the tax on property in Groenheuwel will increase with 37,72% and a Van Wyksvlei property with 36,71%. In her budget speech Mayor Charmaine Manuel described the budget as “a people’s budget”. She said: “It is our sincere belief that the Budget and the Integrated Development Plan presented to Council today, are indeed the best tools needed to guide us in becoming more responsive to the needs of the communities we serve. “The Budget is to help us to take the necessary steps to ensure that we make maximum impact on the lives of the people we serve.” She told council that the Budget addresses the five key priority areas identified by National Government. It included the creation of decent work and sustainable livelihoods, education, health, rural development, food security and land reform and the fight against crime and corruption. Job creation, housing and the development of infrastructure and maintenance was also outlined in her speech. More than R47 million was allocated for housing projects and more than R13 million to facilitate small, medium and micro enterprises, establishing food gardens and skills training for women. Poor households will also benefit as the monthly subsidy per household will be increased from R150 to R165. Pensioners will qualify for a 20% rebate on property rates. It included property with a valuation less and equal to R1,7million and combined household income capped to government pension of R2626. All vacant plots earmarked for low cost houses to a property valuation of R60 000, were also exempted from property rates and charges for the next two years. Currently 7 000 households are registered as indigents and are receiving the R150 subsidy for sewerage and refuse. Properties with a value of R150 000 and less will also be exempted from property rates. Other benefits includes 10kl water free for all households, 100 units electricity free for indigents, 150 units free electricity for unemployed residents and 100 units electricity free for farmworkers’ households, house rental schemes also qualify for indigent subsidy.
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