Covid-19: Major drop in iLembe district municipality’s income

The Covid-19 crisis has had an enormous effect on services payment collections by the iLembe District Municipality.

Tabling the municipality’s R1.1-billion budget for the 2020/21 financial year at a full council meeting hosted virtually last Friday, Mayor Siduduzo Gumede said the collections, which provide revenue income to the municipality, had dropped to 39% over March and April.

Despite objections from ratepayers over the 9.6% increase in the water tariffs, Gumede said it was unavoidable as this was the increase in the water bulk tariff by supplier Umgeni Water.

“The municipality has not added any increment on the Umgeni tariff which would have had a burden to consumers, hence the operational costs of supply water to consumers are absorbed by the municipality,” said Gumede.

Both the IFP and the ANC voted in support of the budget while the non-attendance of the EFF was noted by Council speaker Siphesihle Zulu. The EFF has attended only one council meeting since Zulu took office in September 2019.

The Democratic Alliance opposed the budget and tariff increases, caucus leader Madhun Sing saying they were neither realistic nor affordable.

“Council employee cost at 31% is not sustainable and should be reduced by 5% taking into account that capital expenditure has dropped significantly.”

The DA further appealed to council that it place a moratorium on new employment and use existing workers across different departments.

“The projection on internal revenue collection could drop to around 65% which will cause further strain on the budget taking into account doubtful debtors is sitting around R390 million, up by R40 million from the previous financial year,” said Sing.

Water losses, which amounted R187 million was also a concern for the DA.

“More funds needs to be allocated on repairing and maintaining existing infrastructure to reduce further losses. While new projects are important ignoring existing upgrades will cost council dearly,” said Sing.

Capital projects were reduced to R202 million in the new financial year – a R141 million reduction.

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