Various political parties and ratepayers have expressed concern that the Medium Term Revenue and Expenditure Framework (MTREF) 2025/2026 – 2027/2028 and its proposed tariff increases will further burden ratepayers’ pockets, and argue that the eThekwini Municipality needs to consider the public’s input. This was discussed during a full council meeting on 31 March.
UMhlanga Ratepayers and Ratepayers (URRA) chairperson Terri MacLarty said that the URRA strongly objects to the proposed municipal tariff increases as the rise in costs will adversely affect vulnerable members of the community, including low-income households and small business. She said: “EThekwini has no reason or justification to increase tariffs while their service delivery is non-existent, and as a result properties are devaluing at an alarming rate. It’s time for the corruption in the local government to be stopped. Our rates in KZN are the highest in the country.”
MacLarty said the council needs to reconsider the proposed increases and explore alternative solutions that balance the municipality’s needs with the financial realities of our community.
ActionSA KZN Provincial Chairperson, Zwakele Mncwango, said that these tariff increases insult eThekwini residents. He said: “Instead of cutting down on corruption, wasteful expenditure, and incompetence, the municipality chooses to squeeze more money out of residents who are already struggling. We demand a budget that puts residents first and not one that forces them to pay for government incompetence and corruption.”
Democratic Liberal Congress (DLC) Leader Patrick Pillay said that the DLC does not support tariff increases that will bring about greater hardship for citizens. He highlighted that the peoples voices must be heard and this process will give the public an opportunity to actively participate in determining the budget outcomes. “The multibillion rand draft budget had very critical capital projects in terms of water and electricity infrastructure rehabilitation as well as an operational budget for repairs, cleaning and maintenance. This is critical to enhance service delivery. The public participation process must be meaningful and constructive,” PIllay said.
DA councillor Andre Beetge said the tariffs come when the city is constantly losing water. He said: “The city is losing 56 percent of its water. Non-revenue water is clearly not measured, taps are running freely as there are no measures to monitor or control non-revenue water, yet we are again expecting, through these increases, for those who actually contribute the fiscal, to bridge these losses. All we hear is of this ever changing water turnaround strategy that has, over the past three financial years, yielded no more water into taps, yet succeeded in increasing the debtors to a staggering R36 billion.”
Beetge said as much as the DA agrees that water and electricity should enjoy top priority, it shouldn’t be achieved on the back of increases that are divorced from the reality of inflation, that serves little more than abolishing the rate payers of this city.
Mayor Cyril Xaba, said the total proposed budget for 2025/2026 Is R71.3 billion – including the city’s entities – which is made up of an operating budget of R64.2 billion and a capital budget of R7.1 billion. “For electricity, the proposed increase is 12.72 percent for residential and business – an increase of 1.4 percent from Eskom’s proposed 11.32 percent, and amounts to R23.3 billion. For water, the proposed tariff increase is 15 percent for residential consumers and 16 percent for business. The proposed uMngeni-uThukela Water Board increase is 13.5 percent which translates to an increase of 1.5 percent for residential consumers and 2.5 percent for business by the municipality. The total operating budget for water is R9.98 billion.”
