Residents face 7,3% average increase from July
Despite the challenges the budget aims to address low collection rates and economic growth as well as present the people of Ekurhuleni with tariff increases that are in line with their commitment to the provision of affordable and accessible services
RESIDENTS can expect an average 7.3 per cent increase on their municipal bills following the approval of the 2014/2015 budget presented on Thursday last week.
Ekurhuleni Metro approved a R32 billion budget with the operational budget being R28 billion and the capital budget R4 billion.
MMC Moses Makwakwa said the average increase was two per cent less than the previous financial year, which saw residents faced with a 9.3 per cent increase.
The tariff increases are:
– 7.5 per cent on assessment rates;
– an average of between 6.3 per cent to 7.6 per cent on electricity. ESKOM’s national tariff increase is 8.06 per cent and the metro will absorb at least 1.3% of ESKOM charges;
– 8.1 per cent increase on water for both residential and business (same as increase Rand Water);
– 8 per cent on sanitation for both residential and business;
– Refuse removal increase ranges between 2.4 per cent to 7.1 per cent for residents and 6 per cent for business and;
– 0 percent increase on cemeteries and recreational halls.
“Based on the National Treasury assessment during May, Ekurhuleni remains the most affordable metro to live in, at an average household bill of R1 265 to R1 626. Ekurhuleni is still below the average of all the metros, which is R1 472 a month,” said Makwakwa.
These social packages will be provided:
– the first R150 000 on property value is exempted from assessment rates;
– for pensioners, an additional rebate on property assessments ranges from 10-100 per cent;
– churches and NGOs are exempted from assessment rates;
– all households will still enjoy 6kl of water and sanitation service for free; and
– an additional incentive of 100 Kilowatts of free basic electricity to low end users.
Just under R800 million has been allocated to ensure that the city’s registered indigents will continue to live in dignity by receiving 100 per cent rebates on assessment rates, nine kilolitres free water, nine kilolitres free sanitation, free refuse removal, 100 kilowatts free electricity and free burial.
The bulk of the operational budget will be spent on bulk water, electricity and sanitation.
“Our expenditure increase of 5.7 per cent is in line with inflation,” Makwakwa said.
He mentioned the metro was concerned with its current spending patterns which had always been a bone of contention with opposition parties.
“It is the responsibility of both the political and administrative heads to ensure we spend as per the service delivery and budget implementation plan targets.
The bulk of capital expenditure will be undertaken by the transport, roads and storm water departments with the main investments including the Integrated Rapid Public Transport Network.
R441 million has been allocated towards this project which has already commenced in Kempton Park and Tembisa. The project aims to integrate various modes of transport, including minibus taxis, buses and rail with a route running from Tembisa through Kempton Park to Vosloorus.
Other investments include R40 million for the replacement of municipal buses; R135 million for continued rehabilitation of roads; R78 million for road infrastructure; R63 million for the construction of tertiary roads; and R100 million for storm water upgrades.
R161 million has been allocated to corporate electrification and R92 million for substations. R47 million will go towards the installation of protective structures and pre-paid meters.
R250 million will be used to curb water losses and address upgrades of the water networks.
R66 million will be used for human settlements essential services while R9 million has been budgeted for the provision of emergency water and sanitation services to informal settlements.
The coming financial year will see the construction and upgrade of the metro police’s precincts in Kempton Park, Edleen, Tembisa, Benoni and Thokoza for which R14 million has been allocated. A further R92 million will be spent to acquire additional vehicles for the metro police.
R329 million will be used for the construction and upgrade of clinics, including Bonaero Park Clinic.
The R120 million allocated to skills development was questioned by NFP PR councillor, Clr Siphumule Ntombela, who said the money was insufficient.
“We remain concerned that we still collect below our target of 93 per cent, whilst there is high capital pressure for service delivery. However, through the implementation of the revised revenue protection and enhancement project, we will continue with the battle of improving on collection,” Makwakwa said.
“We will apply aggressive credit control measures to recover outstanding debt.”
The DA’s Clr Eddie Taylor echoed the metro’s concern with the collection rate, which is just under 90 per cent, and attributed most of the shortcomings of the metro to inadequate planning. This and other concerns led the party to oppose the budget.
