By Bongani Majola
The City of Johannesburg plans to increase electricity, water and sanitation tariffs for the 2003/4 financial year.
Roland Hunter, executive director of finance for the city, announced the tariff proposals at a media briefing on Wednesday. He said the city planned to increase assessment rates and electricity tariffs by 13 percent.
The rise in electricity tariffs was due to the increases levied by Eskom on the cost of the bulk supply, said Hunter.
Water and refuse removal tariffs are set to rise by 10 percent together with other minor tariffs, including Emergency Management Services, Johannesburg Metrobus and the Johannesburg Metro Police.
Hunter said it was "unavoidable that we adjust the trend of the last few years, which has been characterised by too much cost absorption."
However, Hunter pointed out that the City of Johannesburg did not intend implementing the hikes unilaterally. "We are in the process of consulting communities through ward councillors and other representative bodies on the proposed increases. The views expressed by communities will be seriously considered before the issues are brought to Council in its May 2003 budget meeting."
Hunter said the city was mindful of the impact of such increases on residents and ratepayers. "There is a risk that some households will find the tariff increases less affordable," he said.
Hunter also proposed an increase in the City's social spending package from the current R335 million to R400 million for the 2003/4 financial year. The social package includes a 100% rebate on properties where land value is less than R20 000.
"This means for example that the majority of the residents in Soweto, Alexandra, Ivory Park, Orange Farm, Eldorado Park, Bosmont, Lenasia South and other similar areas do not have to pay assessment rates," Hunter said.
The City is currently formulating its 2003/2004 budget, which is expected to be released by May.
