This article may contain graphic and/or adult content unsuitable for minors and sensitive readers.
The Nelson Mandela Bay Council approved the 2014/15 municipal budget that makes provision for an average 9.5% increase in property rates.
In addition, with effect from the start of the next financial year on July 1, sanitation and refuse services will increase by 12% and the water tariff by the same amount.
The average increase in the electricity tariff is 7.39% and is projected to remain the same for the next two years.
Budget and Treasury states in its report that there were “significant challenges” in preparing the budget for 2014/15 and the two outer years of the Medium Term Revenue and Expenditure Framework period.
These include maintaining the collection rates at target levels and the fact that the increased costs of bulk electricity and water is putting upward pressure on municipal tariffs, which “may soon render municipal service unaffordable.
In addition, the directorate points to issues such as the allocation of adequate funding for the rehabilitation and maintenance of infrastructure and the impact on the metro’s ability to fund capital expenditure internally as a result of the Capital Replacement Reserve being depleted.
No growth in revenue sources has been provided for as current consumption trends are downwards and the property market is depressed.
