Member of the Mayoral Committee for Finance and Economic Development, Clr Doctor Xhakaza, delivered the City’s budget speech atthe Germiston Council Chamber today (Thursday).
The budget for the 2019/20 financial year amounts to R48.9-billion, of which R7.4-billion is for capital projects and R41.5-billion for operational costs.
The speech, which was anchored on the City’s pro-poor agenda, fiscal prudence and additional revenue sources, highlighted containment of tariff increases, consolidation of social packages and investment in capital infrastructure for economic stimulation.
The budget was delivered on the back of achievement of 94% revenue collection rate from the annual billing.
The following tariff increases were approved:
Assessment rates:
7.5%, consistent with the Consumer Price Index (CPI) of 5.2% plus 2.3% for real growth.
Electricity:
Will be increased by between 13.07% and 13.87% depending on the usage, whereas the National Electricity Regulator of South Africa (Nersa) has granted Eskom an increase of 15.63% in March. This means the City will absorb, and not pass on to consumers, the difference in percentage points between the two increases.
Water:
15%, which is equal to the increase announced by Rand Water.
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Sanitation:
11%, which is informed by the cost of sewer purification processes undertaken by the East Rand Water Treatment Company (ERWAT).
Refuse removal:
7.5% for all users due to the main cost drivers of the service.
Cemeteries/crematoria:
There had been no tariff increases for cemeteries and crematoria over the past five years.
Due to the need to maintain the cemeteries, a nominal tariff increase of 5.2% for residents and 6.5% for non-residents was effected.
