Municipal tariff hikes loom for Nelson Mandela Bay residents

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Property, water, sanitation and refuse rates in Nelson Mandela Bay will all increase by 13%, according to the Draft Budget for 2013/14.

The electricity tariff will increase by an average of 8%.

The Draft Budget was to have been tabled at Wednesday's joint Mayoral and Budget and Treasury Committee meeting but the meeting was postponed. No new date has been fixed for the meeting.

Total operating revenue has decreased by 1.2% or R86 million for 2013/14 compared to the 2012/13 Adjustments Budget as a result of housing top structures funding not being included.

This will only happen once confirmation has been received from the Provincial Department of Human Settlements of the amount that will be transferred.

Total operating expenditure amounts to R7.6 billion, resulting in a budgeted deficit of R320.8 million.

The major operating expenses for the 2013/14 financial year are: employees¡¦ costs (26.4%), bulk electricity and water purchases (32%), general expenses (6.5%), grants and subsidies paid (5.3%), repairs and maintenance (7.1%) and depreciation (11.7%).

The major sources of funding for the Operating Budget are: service charges such as electricity, water, sanitation and refuse collection and disposal (57.4%), property rates (16.8%) and grants and subsidies received from National and Provincial government (12.54%).

The Capital Budget for 2013/14 is R1.08b, which is 23.7% less than the 2012/13 Adjustments Budget, mainly as a result of there being no allocation from National Treasury in the next financial year for the Integrated Public Transport System.

Regarding the electricity tariff, the Draft Budget says following the determination by the National Energy Regulator of South Africa (Nersa) that Eskom's bulk tariff to municipalities would increase by 8%, the Metro's consumer tariffs will increase by an average of 8%, to offset the additional electricity bulk purchase costs from July 1.

It adds that Nersa is still in the process of determining the guideline tariff increases for municipalities.

Should the Metro wish to exceed the in-crease it will need to motivate this to Nersa, which must give its approval.

(Source: Metrominute - to subscribe mail metminutes@iafrica.com)