Ratepayers are battling to pay rates and service charges while the number of indigent households has risen
People wait to get water from a container brought to Silobela township in Carolina, as the municipality's water found to be unsuitable to drink, May 2020. Picture: SOWETAN
Salga’s chief officer for finance, Khomotso Letsatsi, said the pandemic and lockdown would result in job losses and reduced income, which would ultimately affect municipal revenues and their ability to meet their financial obligations.Municipalities were already struggling to collect revenue from service charges and rates and this situation was likely to worsen as a result of the pandemic.
Letsatsi noted that there would be a reduction in revenue from water and electricity due to reduced consumption for example from the closure of companies and businesses as well as from the rental of municipal facilities such as conference centres and community halls. Electricity consumption by industry, which subsidises electricity provision to households, has declined while consumption by households has increased.
Municipalities will be allocated additional funding of R20bn in terms of government’s R500bn stimulus and relief package. This will be used for the provision of emergency water supply, increased sanitisation of public transport and facilities, and providing food and shelter for the homeless.
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