By Nangamso Mabindla
30 May 2007

MUNICIPAL tariffs will rise by an average 7 percent for the 2007-08 financial year, according to Buffalo City's chief financial officer, Brian Shepherd.

Shepherd was presenting next year's budget at a special council meeting at the East London City Hall on Tuesday, 29 May moments after Executive Mayor Zintle Peter delivered the State of the City and budget speech.

However, the hike in tariffs would improve service delivery and help the more than 50 000 indigent households in the municipality. In her presentation, Peter announced that R117-million would be set aside for indigent residents in the next financial year.

"In order for the City to carry on its services, we will have to increase the tariffs. We also have indigent households that will benefit from the tariff increase," Shepherd said.

Outlining the increases, Shepherd said that residents should expect a 5 percent rise in sewerage tariffs, 10 percent for refuse collection; 7 percent for water and 5,6 percent for electricity.

"This will help push our welfare (social safety net) to R237,50 from R206 this financial year. We will also have a 40 percent rebate for pensioners and disabled people," Shepherd added.

"The tariff increase will also enable the municipality to have better maintenance for services such as water, electricity and sewerage."