Newsletter 138 - Metros hike service tariffs to fund a R13 billion increase in operating budgets
Between the 2009/10 and 2010/11 financial years, metropolitan municipalities collectively increased their operating budgets from R98 billion (R98bn) to R111 billion (R111bn). Service tariff hikes were implemented to fund this increase. Electricity tariffs increased the most. Ekurhuleni experienced the highest electricity tariff hike, at 29%.
In the 2010/11 financial year, metropolitan municipalities implemented substantial service tariff hikes to fund their increased operating budgets for the year. Most metros get only a small portion of their operating budgets from national government, the amount depending mainly on the number of low-income people in the area. The rest of the budget is funded through service tariffs, property rates, and fines. The City of Johannesburg had the largest operating budget, amounting to R25bn, while Mangaung had the smallest, R3bn. Operating budgets are used by municipalities to provide services.
Johannesburg’s operating budget of R25bn was up from R22.4bn in 2009/10. Water tariffs increased by 13%, electricity tariffs by 18%, and refuse collection tariffs by 2%.
EThekwini (Durban) had a budget of R20.6bn, up from R18.7bn. Water tariffs increased by 9.5%, electricity by 25%, and refuse by 7.5%.
Ekurhuleni (East Rand) had a budget of R19.6bn, up from R14.4bn. Water tariffs increased by 15.5%, electricity by 28.9%, and refuse by 15%.
Cape Town had a budget of R19.5bn, up from R16.8bn. Water tariffs increased by 10%, electricity by 24.6%, and refuse by 18%.
Tshwane had a budget of R14.8bn, up from 13.5bn. Water tariffs increased by 10%, electricity by 19%, and refuse by 9%.
Nelson Mandela Bay (Port Elizabeth) had a budget of R5.6bn, an increase from the previous year’s R5.2bn. The municipality hiked its water tariffs by 12%, electricity by 22%, and refuse by 11%.
Buffalo City (East London) had a budget of R3.2bn, an increase from R2.8bn. Water tariffs were hiked by 10%, electricity by 10%, and refuse by 6%.
Mangaung (Bloemfontein) had a budget of R2.98bn, only slightly up from R2.96bn. Water tariffs increased by 15%, electricity by 19%, and refuse by 13%.
- Lerato Moloi
This website has been produced with the financial assistance of the European Union. The contents of this
document are the sole responsibility of the Friedrich Naumann Foundation for Liberty and the South African
Institute of Race Relations and can under no circumstances be regarded as reflecting the position of the
European Union.
