ETHEKWINI Council has come under strong criticism after it revealed its financial budget for 2016/17. With more than R14-billion of its medium term capital budget earmarked for infrastructure and service delivery, the budget this year is clearly pro-poor and focused on alleviating poverty and social imbalances.
However, civic organisation Save Our Berea has strongly criticised the budget which comes, it says, in the wake of years of financial mismanagement and the city’s arrogance and lack of concern for its citizens.
In a joint statement this week, Cheryl Johnson and Kevin Dunkley said the organisation rejected out of hand the financial budget for 2016/17. “It appears the mayor is now trying to take the moral high-ground by stating that structural poverty remains a challenge and hence R3.4bn of the R14.8bn will be directed to new housing developments and interim servicing of informal settlements.”
“The majority of the citizens would be happy to support the cause of fighting poverty, but it is not the politicians that are paying, but the ratepayers. And these are the same ratepayers who are also not seeing service delivery as those elected to run this city treat their rates like their personal stash. Yes, we will support helping the poor as long as the municipality stops using our money to bring rap artists to Durban, stops handing the bus service to people who are not capable of running it, stops crazy ideas like sea cruises at the taxpayers’ expense and shelves once and for all the idea of hosting the Commonwealth Games, an event no other city in the world wants to touch. R5 million to feed councillors, and the mayor has the audacity to talk about the poor! The poor have to buy their own food. The mayor talks about tough economic times, from the look of this budget the tough times are for the ratepayers,” they said.
The City tabled its consolidated R41.6bn draft budget at a meeting of council on Thursday. According to eThekwini Municipality’s spokesman, Thulani Mbatha, structural poverty remains a challenge, with a large proportion of the City’s population still living in material income deprivation and under squalid conditions, hence R 3.4bn of the R14.8bn is directed to new housing developments and interim servicing of informal settlements.
Nxumalo said the City’s Social Package would provide services to residents who cannot afford to pay. The cost of this social package is partially funded from the equitable share of R2.3bn provided by National Government. This package will assist poor households with access to water, electricity and sanitation.
The 2016/17 draft budget is made up of a capital budget of R6.7bn and an operational budget of R34.9bn
One of the highlights of the capital budget is the almost 71 per cent attributed towards utility services, which provides basic services such as water and sanitation, electricity and refuse removal together with housing provision over the medium term expenditure framework.
The growth of the operational budget is mainly due to the bulk purchases, salary allowances and repairs and maintenance.
Taking heed of Treasury and the belt tightening measures made in the National Budget speech, Nxumalo said the municipality had proposed an across the board cut be made to vacancies, overtime, security, vehicle costs, consultants, eventing, seminars and conferences to curb expenditure.
He said every effort has been taken to ensure that tariff increases in rates and municipal service charges were in line with or below inflation.
“Increases, in respect to bulk purchases of water and electricity is beyond the control of the Municipality, attributes to a 9.4 per cent Eskom increase approved by Nersa and 11.5 per cent increase by Umgeni water board coupled by the decrease in consumption of both these utilities due to the current drought conditions and the implementation of energy efficient initiatives. However, to maintain sustainable service delivery, the City has to ensure sustainable revenue streams from revenue generating services,” said Nxumalo.
Nxumalo tabled the draft budget for comment, and the municipal leadership and administrative arm will engage in extensive public participation and consultation at various venues throughout the City during April. The draft budget can be viewed at City Hall or on the Municipal website, www.durban.gov.za. Once the deadline for comments has been met and amendments are considered the new rates and tariffs will be implemented at the start of the new financial year on 1 July.
