30 April 2004 Press Release Council Approves Proposed Tariffs Council today approved a proposed tariff increase of 6.8% for the City of Joburg. Tariffs have been reviewed against the criteria of affordability, sustainability, economic competitiveness, cost recovery and transparency. The proposed increase is marginally higher than the inflation rate of 5.5%. Individual increases are as follows: Assessment rates 8.5% Electricity (domestic) 9% Business 3.5% Water and sanitation 9% Refuse collection 5.5% Between 1997 and 2003, tariff increases have been below the inflation rate. Council is legally obliged to review tariffs annually in terms of the Municipal Systems Act 32 of 2000 as well as allow residents to participate in the process. Today's approval of the proposed tariffs is therefore not final. Councillor Parks Tau Mayoral Committee Member for Finance and Economic Development said, "Over the next 30 days, residents will have the opportunity of commenting on the proposed increases verbally or in writing. We encourage residents to do so because their inputs are taken seriously and will be considered in line with the City's capital expenditure". The final tariff increase will be made public during the Mayor's Budget Speech in June. He further said that it must be remembered that 75% of the City's income is derived from the payment of assessment rates, water and electricity. These monies are ploughed back into the City through the maintenance and upgrade of service infrastructure as well as new programmes and initiatives that develop Joburg. "A constant challenge for Joburg is its ability to render excellent service in relation to the needs of residential and business consumers, the provision of basic services to the previously disadvantaged and the collection of revenue especially arrears", said Tau. During previous years, business tariffs have been relatively high and cross-subsidized domestic tariffs. This resulted in business moving elsewhere. The proposed business tariff is geared at attracting business and investment back into the City that in turn creates much needed employment opportunities. "An encouraging sign for the City is that for the past four months payment levels have consistently averaged 91%. It is important that Joburg maintains the confidence of residents. Inefficiencies, poor response to queries and a lack of commitment by officials will not be tolerated", said Tau. "We all need to be working together for better service delivery", he said. As one of the fastest growing cities in the country, Joburg recognizes the need to meet consumer expectations. Ends Virgil James Journalist Communications Telephone:407 7226 Facsimile:403 3494 Cell:082 467 9415 Email:VirgilJames@joburg.org.za