Pikitup to start charging levy based on property values

The City of Johannesburg’s proposed budget sees an increase from R54.8 billion for the 2016/2017 financial year to R55.9 billion for 2017/2018.

Member of the Johannesburg Mayoral Committee for finance Rabelani Dagada delivered the coalition government’s first budget address in the city’s council chambers in Braamfontein.

With regards to environment and infrastructure services‚ the waste utility Pikitup will start charging a levy based on the value of properties‚ while the average refuse tariff is projected to increase by 6.2%.

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According to Luyanda Mfeka‚ the spokesman for the office of DA mayor Herman Mashaba‚ this new principle moved away from charging for waste management services (refuse charge) based on the number of bins‚ “to charging a levy as a contribution towards the cost associated with all waste management services”.

“The amount of the levy charged is determined based on the value of property‚” he added

Dagada announced that the allocated budget for the city’s waste removal utility will be allocated an operating budget of R2.4 billion for the 2017/2018 financial year.

The “forgotten people” speech focused on poor communities across the metro.

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“R482 million has been set aside within Pikitup’s budget for cleaning informal settlements over the next three financial years - R150 million is to be spent in 2017/2018 alone‚” said Dagada

In terms of rates and taxes‚ Dagada said the city had done everything in its power to keep tariff increases to a "bare minimum".

Property rates will rise by 6.2%‚ electricity will increase by an average of 2.28%‚ while the proposed tariff increase for water‚ sewerage and sanitation services is‚ on average‚ 2.2%.

The budget vote will take place on Thursday.