Msunduzi residents brace for above-inflation tariff increase

RATEPAYERS in Msunduzi have until the end of the month to comment on a proposed tariff increase that could be implemented in July.

Last month, the Msunduzi Municipality proposed a 10% tariff increase for the 2021/22 financial year. This is 4% higher than the National Treasury recommendation.

The city said each year it prepared its annual budget and set proposals as to how the tariffs could be rearranged.

Some residents are concerned about the proposed 10% increase on their bills.

Anthony Waldhausen, chairperson of the Msunduzi Association of Residents, Ratepayers and Civics (Marrc), said they had already objected to the proposal.

Marrc represents 17 ratepayers’ associations in Pietermaritzburg and two civic organisations.

“The proposal goes against what is recommended by the National Treasury.

According to Treasury guidelines, increases of between 4% and 5% can be made, but the municipality wants an increase of 10%.

“Residents cannot afford to keep up with the bills.

“They are trying to recover from last year’s financial distress as a result of the lockdown. How will they be able to foot a utility bill for an even higher amount come July?” Waldhausen asked.

He said if the municipality ignored the concerns raised at the public participation process and still implemented the increase, then Marrc would write to the Department of Co-operative Government and Traditional Affairs and take legal action against the city.

“If it means getting a class action suit or mobilising groups of people to protest and call for a rates boycott, we will. We cannot sit back and just stay quiet, while the city drains us of every cent we have.”

Kantha Naidoo, the chairperson of the Msunduzi Economic Development Agency (Meda), said: “We cannot support the exorbitant increase.

“There are businesses that could not cope with the financial impact of the lockdown, and they had to be permanently shut down.

“How will an increase help this situation if businesses have to pay an increase like this? They would have to introduce short-time for their staff because they would not survive by paying full salaries.”

Naidoo, who is also the chairperson of the Lincoln Meade Residents and Ratepayers’ Association, said residents would have to dig even deeper into their pockets.

“Msunduzi has a lot of poor residents or old pensioners living on the grants they get. They would not be able to pay the increase. People would lose their homes and vehicles, or they would have to sell their valuables just to pay their bills.”

Melanie Veness, the chief executive of the PMB Chamber of Business, described the proposal as ludicrous.

“It is offensive that the municipality shows complete disregard for the circumstances that residents and businesses find themselves in, and it is utterly indefensible considering the appalling services offered by Msunduzi,” she said.

“Most businesses are battling to bounce back from the shocking year last year, and finding it difficult to do so, as economic conditions have only improved marginally.

“Most private sector organisations have reduced staff or their people have taken salary sacrifices just to keep businesses going.

“The municipality and Eskom have made it even harder for business to rally, with constant infrastructure failure and load shedding.”

Veness said trying to impose an increase of more than twice the inflation rate and more than double the National Treasury recommendation was disgraceful.

“This might hasten decisions around boardroom tables to disinvest and relocate.”

Veness said the chamber had written to the municipality detailing its shortfalls in service delivery and ageing infrastructure, and the chamber had requested the municipality to contact it to work together, but the municipality had not responded to the chamber.

Ross Strachan, DA ward 26 councillor, criticised the proposal.

“This is due to the desperate financial situation, not only in the city, but throughout all spheres of government. We will have to rely on our own revenue enhancement strategies, priority budget cuts of non-core, wasteful functions (for example, private security) within our departments and ultimately focus on the real administrational challenges in terms of enforcing our by-laws.”

He said the proposed draft tariff increases needed to be in line with National Treasury guidelines, to be negotiated between the minimum and maximum percentage increase in line with the inflation rate.

IFP councillor Thinasonke Ntombela said: “Ratepayers will be the ones to suffer if this proposal comes into effect. Unemployment is plaguing Pietermaritzburg residents and the impact of Covid-19 has also affected many households.

“The people are the ones who will suffer, and it’s really unfair. We are against a tariff increase and I know the ratepayer associations are also going to reject the proposal.”

Vusi Ntshangase, the ANC chief whip and Msunduzi council member, said the ANC Msunduzi Municipal caucus fully supported the proposal.

The Msunduzi Municipality did not respond by the time of publication.