OPINION - Migration from rural areas to the cities, Durban in this case, places a heavy burden on municipalities to provide and maintain services for large populations, significant sections of which often cannot pay for such services.
This means that although the population grows, the rates base does not necessarily follow suit, or at the same rate. In eThekwini Municipality’s case, city treasurer Krish Kumar says the rates base grew only by up to 2% from the previous financial year.
Adding to the problem is the huge debt owed to the municipality by schools, government departments and state-owned entities such as Transnet, many of which are themselves in dire straits and unlikely to pay their arrears any time soon.
This then saddles those who do pay - or who the municipality ensures pay - with the responsibility of paying for those who do not.
This might not be so unpalatable a prospect if there were assurances that the money was being spent responsibly and in the best interests of the city and its citizens.
Sponsoring a huge taxi delegation on a vanity jaunt to a foreign country, costing hundreds of thousands of rand, is just one example of irresponsible spending.
It is unsurprising that eThekwini must therefore seek a R1billion loan to meet its basic delivery requirements.
Once again, the paying ratepayer will be penalised.