Electricity to rise by 17% from 1 July
2011-05-19
THE Drakenstein Municipal Council will increase electricity rates by 19% (17% for prepaid meters), and not 20,38% as proposed in the draft budget, by cutting back on expenditure like salaries, entertainment, travelling and stationery. The steep increases are due to the rise in Eskom rates. The Council has approved a budget of R1,5 billion for the next financial year, with ratepayers facing a hike of between 7% and 12% in their municipal accounts from 1 July, depending on the size of the household and the resultant use of services. This includes an increase of 5% in property rates, a 7% increase for refuse and sanitation and a 10% rise in water tariffs. The property rate increase has been fixed at 5% per year for three years until 2012, due to the relatively low generic growth in the local economy. Residential property rates will rise from 00,00515 cents per rand to 00,00541 cents per rand of the property value. Agricultural rates rise from 00,00120 to 00,00135 cents per rand. Pensioners with a household income of R3780 per month or less, and disabled persons, get a 50% rebate on property tax (apply for the rebate at the municipal office). Indigent households with an income under R2808 receive subsidies on electricity (100 free units of electricity and 10 kl of water free as well as R87,50 credit on sewerage and refuse removal). The Municipality is to introduce prepaid water meters at a special price on which users will pay no increase in water rates. The meters are available at 50% discount. Currently, about 65% of the 46 000 local households in Drakenstein have access to piped water. The capital budget amounts to R339 million, up 18% from R278 million last year. Of this total, R139 million will come from the Council’s own coffers, R137 million will be funded by loans and R63 million will come from state grants. The capital budget includes community halls planned for Fairyland and Groenheuwel, as well as Van Wyksvlei, improvements to the Paarl waste water treatment works and gravity sewer from Paarl South (R33 million) and the Wellington works (R13 million), as well as a new fence around the landfill site in Wellington (R5 million). The operating budget amounts to R1,24 billion (13% more than last year’s R1,1 billion), with the salary bill increasing by 11,5% (inclusive of 1% growth) and making up 25% of the expenditure. The budget for repairs and maintenance increases by 9,2% to R83 million. This includes maintenance of sewerage and water distribution, electrical connections and streets. This also includes IDP projects like mayoral bursaries, and projects such as the removal of alien vegetation.
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