Tough budget for Ekurhuleni

Ekurhuleni MMC for Finance, Strategy and Corporate Planning, Jongizizwe Dlabathi, on Thursday tabled a R65.5 billion budget.

According to Dlabathi, tough economic realities, lack of optimal collection, revenue leakages, weak liquidity position, ineffective expenditure management and the assumption that 90% of municipal revenue should be generated internally, were among key factors in the budget.

Bullish about improving alignment and effectiveness of existing revenue collection systems, Dlabathi projected an additional estimated R2.1 billion gross revenue in the current financial year.

“Given that we intend not to borrow over the medium-term, all departments that are involved in the revenue generation value chain will have to pull together to ensure the achievement of our revenue goals in the medium and long-term.

“This will be spearheaded at the level of the Revenue Enhancement Committee that has since been put in place by Executive Mayor Nkosindiphile Xhakaza.

“The budget posture is guided by the directive to ensure a responsive city, working with agility to restore service delivery to communities.

“This directive demands that we focus on the core basics – providing quality, equitable and sustainable services to all in a manner that ensures the ideal quality of life,” said Dlabathi.

Non-negotiables

He said Ekurhuleni’s total expenditure budget of R64.8 budget would be subjected to non-negotiable conditions, which would include:

• Spending within the allocated budget.

• Linking spending to the provision of essential services and goods.

• Fostering economic procurement and realisation of value for money.

• Strengthening internal capacity to reduce over-reliance on contracted services. 

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Key expenditure breakdown allocations include:

• Water and sanitation repairs will receive and maintenance R550 million,mainly to ensure resilient infrastructure that secures a sustainable supply of water and sanitation services—stretching to fixing water and sewer leakages. 

• From the total of R20.7 million earmarked for human settlements, R7.5 million will be channelled towards basic repairs and maintenance work for selected hostels—with the rest covering the maintenance of rental units, including Ekurhuleni Housing Company.

• The Energy Department will receive R1.4 billion towards infrastructure and equipment maintenance related to substations, network enhancement, with R103 million allocated to the repairing of street and traffic lights, under the Operation Khanyisa Mhali.  Additional R254 million has been allocated to the protection of energy infrastructure. 
• Through the ” Siyakhuculula Manje and Clean Kasi ” programme, a total of R226 million has been allocated to environmental resources, waste management repairs, maintenance materials and supplies to support internal capacity to cut grass, maintain cemeteries, remove weeds, prune trees, and maintain landfill sites, wetlands, lakes, and dams.
• A total of R946 million has been allocated for roads and transport management, with road rehabilitation and pothole patching done under the auspices of the Hlasela Amapotholes project. 
• A total of R41.3 million will be used for repairing and maintaining traffic signals.
• While more funds are still required, R54 million will go towards addressing sinkholes.
• Capital expenditure has been allocated R3.1 billion.
• An employee budget will be R13.4 billion – towards annual salary increments and the recruitment of additional workforce.

Dlabathi said the budget will implement the recruitment of 700 permanent cleaners and 290 permanent EMPD (Ekurhuleni Municipal Police Department) officers to maintain strategic offices and buildings.

“A budget of R303 million will be allocated over the medium-term to equip the staff with essential tools of trade necessary to optimise performance. Time provision must prioritise departments that are providing essential services. 

“The long-term trajectory is that of implementing the 70/30 ratio for service delivery, wherein 70% of the services are rendered in-house, with 30% contracted.

“As we implement the capital budget, we must not be found wanting with our supply chain management, planning, organising and as well as overseeing the completion of capital projects within time, scope and quality,” added Dlabathi.

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