Under the proposal, electricity tariffs are set to increase by 9.9%, while water tariffs could rise by 14.4%. In contrast, property rates are expected to decrease by 5%, sanitation charges will remain unchanged, and solid waste tariffs will increase by 3.7%, in line with inflation guidance from the National Treasury.

Meanwhile, the metro is expanding access to free basic services to cushion its most vulnerable residents. This includes the provision of free electricity and water to qualifying households.

Low-value properties exempt from paying rates

Chief Financial Officer Zuziwe Thekhisho said new strategies have been introduced to protect low-income residents, including changes to the municipality’s property rates policy. Properties valued at up to R180 000 will now be exempt from paying rates and certain municipal service charges.

“The exemption that has been proposed to council for the vulnerable groups has been increased from R100,000 to R180,000. Which means all properties up to R180,000 will pay zero for tax rates, they will pay zero for sanitation, they will pay zero for refuse removal.

Free electricity, free water

"The exemption will apply to residents with indigent status, and if they meet the requirements outlined in the indigent policy, they will be eligible to receive 50 kWh of electricity per month and six kilolitres of water per month."

To support these benefits, the municipality has allocated approximately R3.4bn over the next three years.

Thekhisho tabled a R44.4bn draft budget outlining Mangaung’s financial and service delivery plans over the medium term. Of this amount, R40bn is expected to come from operational revenue, while R4.4bn will be sourced from grants and other funding streams to support capital projects.

The budget prioritises key service delivery areas, particularly water and sanitation, as well as road maintenance. The metro has faced ongoing criticism over deteriorating road infrastructure, prompting a renewed focus on repairs and upkeep.

Thekhisho also explained how the revised property rate exemption will be implemented: "For us to determine tax on a homeowner's property, we will take the market value of the property minus R180,000 - then your tax will be determined on the net of that amount. You will be required to register with the metro.”

Municipality to ensure access to municipal support

She added that the municipality is working to ensure residents in low-cost housing developments and upgraded informal settlements are formally recognised and able to access municipal support.

We are currently working to ensure that residents of low-cost housing developments and upgraded informal settlements are acknowledged as prospective owners of these properties. We are in process of ensuring they open accounts with the metro so that they can see this social package extended to them,” she said.

The municipality maintains that the proposed measures are designed to ease financial pressure on residents while expanding access to essential services, particularly for those most in need.

OFM News/Kekeletso Mosebetsi cvdw

• Have a news tip to share? Phone or WhatsApp the OFM News Hotline: 066 487 1427.