DURBAN - UMHLATHUZE Municipality in northern KwaZulu-Natal has approved a R4.7 billion budget that will be centred on the needs of the poor.
The council began by effecting rebates on rates, refuse removal, and water and sewer charges as per its earlier resolutions, in February 2021, to ease the burden on property owners caused by the negative effects of the global pandemic on the economy.
“The 10% Covid-19 relief is a benefit to City of uMhlathuze residential customers only, who pay for rates, refuse, sewer and water. Any other service not mentioned does not qualify for a rebate,” said uMhlathuze mayor Mduduzi Mhlongo.
He announced an increase in the free kilolitres of water from 6 to 10 kilolitres, and free rates, free refuse removal and free sewer services for properties valued at R160 000 or less.
There was also an increase in indigent relief, which he said was because many in the community had lost their jobs due to Covid-19, retrenchments and companies closing shop.
The pensioners’ rebate also increased from R200 000 to R250 000.
Tariffs increases were on average capped at 5% for all services with the exception of the electricity tariff which was placed at 6.29%. Repairs and maintenance of infrastructure was increased to 13%.
He highlighted challenges faced by the city in preparing the budget and ensuring that it responded to the difficult economic climate, Covid-19 challenges and the need to balance rates with basic service delivery.
“Our collection rate has dropped from 97% a year ago to 92%. The rates … are ( causing) a deficit of close to R317 million.”
Mhlongo added that there was an increased expectation of services from households in the Ingonyama Trust Board areas, even though zero rates were collected.
“Our revenue collection is gradually declining, which is an indication of the negative effects of Covid-19.”
The mayor also outlined key infrastructure programmes that had the potential of fast-tracking employment opportunities.
“We had to look into projects that will generate the much-needed business and employment opportunities. Water reticulation projects in Ntambanana, Mkhwanazi North and Mpembeni are on top of the list.”
He said they expected a number of employment opportunities to be created through infrastructure roll-out.
Daily News